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Essay: Business in Mexico

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  • Published: 16 November 2017*
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  • Words: 2,084 (approx)
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Abstract

AguaPura is determined to provide a clear and concise overview of the organization, the employees who make it possible at all levels of the company, as well as their compensation and benefits for doing so. We will examine each of the staffing approaches and determine which is going to be the best fit and most beneficial to AguaPura employees.

Staffing Policy

HR Terms for Multinational Companies:

Here are some terms that relate to Human Resources as we discuss the strategies that are available for the company for staffing in Mexico.1

Expatriate – individual living in a country other than their country of citizenship, often temporarily and for work reasons.

Host-country National – individual from the host country working for multinational companies.

Third-country National – individual from a country that is neither the host country or the country of the multinational.

Staffing Approaches:

The business orientation to how an organization will offer products, manage foreign offerings, conduct corporate culture, and recruit employees for top positions can be divided into three2:

Ethnocentric – orientation towards home country; national employees and leaders are more capable to maintain international tasks

1 Staff, Investopedia. “Expatriate.” Investopedia . N.p., 09 Feb. 2012. Web. 06 July 2017. http://www.investopedia.com/terms/e/expatriate.asp

2 “Internationalization of Multinational Corporations.” Business Mate . N.p., n.d. Web. 06 July 2017. http://www.businessmate.org/Article.php?ArtikelId=12

Polycentric – orientation towards host country; subsidiaries are seen as autonomous units and leadership is not “heavily staffed by nationals from headquarter”

Geocentric – orientation towards the whole world; nationality is not seen a competitive advantage or disadvantage.

Ethnocentric has the benefit that we would have employees from the U.S. conducting the affairs. However, due to the fact that they are not from Mexico they would have to build a network from scratch making it harder to continue with the expansion of operations especially in rural areas. Polycentric gives AguaPura the opportunity to receive the network of people that nationals will come with. Additionally, since they already are familiar with the area, distribution in the rural areas will be made easier. The downside to this is that we would be hands-off in operations. Geocentric is helpful because the water filtration bottle can be used anywhere. Since we are focusing on addressing the lack of potable water in Mexico only, this approach would not be beneficial because the leadership would help if we were doing a world-wide distribution.

Organization Chart and Job Descriptions

Job Descriptions:

General Manager- The duties and responsibilities for this position include overseeing all administrative responsibilities and operations that are carried out in the particular location. They oversee all marketing, financial, Human Resource, sales, and shipping/receiving tasks. They are responsible for making decisions and for reaching profit goals set by the company.3

Financial Manager- This position is responsible for ‘formulating strategic and long-term business plans, analyzing competitors prices and market trends, making evaluations for cost reduction opportunities, and developing external relationships with venders and other potential business contacts the company might have. They are also responsible for producing financial reports, managing the budgets, supervising the staff in the financial department, and staying on top of financial regulations and legislative changes.’4

Purchasing Agent- “Responsible for purchasing the durable and non-durable” products needed to get “the best deal for high quality goods and services at the lowest cost.” They are also responsible for maintaining inventory, visiting vendors,and training new employees within their department.5

Accountant/Bookkeeper- Accountants are responsible for maintaining the financial records, make the deposits from distributors, paying the vendors, printing payroll checks, balancing bank accounts, issuing reimbursements, preparing reports such as audits, accounting, and taxes on a monthly/quarterly basis. They will also keep files of receipts and financial transactions.6

Human Resources Manager- Human Resource manager is in charge not only of hiring new employees, but also of the compliance and the welfare of said employees according to

3 “General Manager Job Description | Americas Job Exchange. N.p., n.d. Web. 08 July 2017. <http://www.americasjobexchange.com/general-manager-job-description>

4 “ Financial manager.” Prospects.ac.uk. N.p., n.d. Web. 08 July 2017. <https://www.prospects.ac.uk/job-profiles/financial-manager>.

5 Inc., MTR At CareerPlanner.com. “Purchasing Agent” Job Description – Part 1 – Duties and Tasks.” Purchasing Agent Job Description, Duties and Jobs – Part 1. N.p., n.d. Web. 08 July 2017. <https://job-descriptions.careerplanner.com/Purchasing-Agents-Except-Wholesale-Retail-and-Fa rm-Products.cfm>.

6 “The Duties & Responsibilities of Bookkeepers.” Chron.com. N.p., n.d. Web. 08 July 2017. <http://work.chron.com/duties-responsibilities-bookkeepers-8706.html> .

employment laws and policies of the company. They also implement benefit/compensation packages, community support, organizational development, and training.7

Marketing/Sales Manager- In charge of developing, implementing, and executing marketing strategies in both the short-term and long-term. They manage the marketing budget, “develop product positioning and packaging”. They also “analyze market research [and] monitor competitor products, packaging and marketing.” They will compile reports on progress and sales volume. They meet with key contacts in the market for strategy and other advantages. 8

Outside Sales Representative- An Outside Sales Rep is responsible for traveling to other businesses, such as stores and wholesalers to sell the company’s product. They will make presentations as well as maintain relationships with existing customers and seek out new potential customers.9

Inside Sales Representative- Through some “cold calling” and incoming calls this position will be responsible for sales over the phone. This person will be available to answer questions, give presentations, and will work closely with other departments such as accounting and shipping. They will ensure quality and satisfaction for the customers in a polite way.10

Shipping and Receiving Manager- The shipping and receiving manager is in charge of overseeing all warehouse operations, inspecting shipping and receiving invoices, as well as maintaining and inspecting shipping equipment. They will also determine logistical schedules and compliance of all weight limits set forth by the law.11

Shipping and Receiving Clerk- This position Will be in charge of scheduling deliveries ensuring purchased numbers are all paperwork and will be receiving product when delivered. They were

7 Heathfield, Susan M. “What Are the Job Responsibilities of an HR Managerraining?” The Balance. N.p., n.d. Web. 08 July 2017. <https://www.thebalance.com/sample-human-resources-manager-job-description-1919125>. 8 “Sales & Marketing Manager Job Description.” Chron.com . N.p., n.d. Web. 08 July 2017.

9 “Outside Sales Representative Job Description.” Career News . N.p., 23 June 2016. Web. 08 July 2017.

10 “Inside Sale Representative Job Description.” Snagajob . N.p., n.d. Web. 08 July 2017.

11 Inc.,
MTR At CareerPlanner.com. “ “SHIPPING-AND-RECEIVING SUPERVISOR” Job Description and Jobs.” SHIPPING-AND-RECEIVING SUPERVISOR – Job Description. N.p., n.d. Web. 08 July 2017. <https://dot-job-descriptions.careerplanner.com/SHIPPING-AND-RECEIVING-SUPERVISOR. cfm>.

also operate the forklift and sort the product. They will record, check, inspect, and if needed reject damaged shipment.12

Expatriate vs. Local:

The General Manager position would need to be filled by an expatriate who has experience and is invested in the success of the company. This person would also have extensive knowledge concerning the company’s policies, procedures and vision. For these reasons it would be worth having someone from the home country monitor the new growth and development in Mexico. Also, with the increase of frequency in international travel between the USA and Central and South America it wouldn’t be a challenge in finding a candidate with experience in Latin American culture and business practices.

The position of Financial Manager will initially be filled by an expatriate, but only until a local replacement can be found and trained. Again, the expatriate will bring with him the working knowledge and expectations of the company, but will also need guidance and initiative to study and understand the local culture and legislation for success. The cost incurred will be essential for the overall success in transitioning into the new country. Once a local replacement is trained then they will need to uphold the company’s standards and will instil in the venders that the company trusts and invests in the Mexican economy.

The Purchasing Agent will be a local employee who has a knowledge of local venders and is capable of easily relating to them will be a must. For the similarities in background, language, and culture a local employee would be invaluable. The candidate here will also be a valuable asset to the Financial Manager in helping them to adjust and succeed in their position in a new country.

The Accountant/Bookkeeper will also be filled by a local with in-country knowledge of the money system, laws and other issues that might arise. Also, as this is a position that an educated candidate in could fulfill, it will save the company money to utilize the resources available.

For our Human Resources Manager we will bring in an expatriate that will eventually be replaced by a local counterpart after training. The reason for bringing in an expatriate is so that some of the home company’s culture will be expressed into the company. Standards will be upheld and impressions on the company’s values and how it runs internally will be expressed and instilled upon the new employees. This will provide continuity and a standard to continue after the expatriate returns home.

The Marketing/Sales Manager will best be filled by a local employee. We fill this because they will already have experience in marketing and sales within the area and know how to appeal to the locals and our target market effectively. They will do this by having an understanding of the local culture.

12 “Shipping/Receiving Clerk.” Sokanu. N.p., n.d. Web. 08 July 2017. <https://www.sokanu.com/careers/shippingreceiving-clerk/>.

Outside Sales Representative- Our Sales representatives will be best found locally. They will learn to manage their time effectively by doing both inside and outside sales.

Our shipping and receiving manager will be found locally. This is to help ensure that there is a fast, smooth and easy transfer of products from shipper to us the receiver. They will know local customs, and laws regarding the type of paperwork required for the reception and delivery of products from foreign entities and how to receive them once they have arrived at the harbor.

Shipping and Receiving Clerk- local

Compensation and Benefits

Looking at an expatriate for compensation in Mexico there are many ways to break down how compensation can work, depending on area where the person has to move and size of the family. We will base our business in Mexico City, DF. On the state department’s website, no place in Mexico is a cost of living expense taken into account. We likewise won’t give any compensation to an expatriate for living expense. We do recognize the potential danger of living in Mexico as a foreigner and will be adding a little bit more than the State Department would for hardship compensation. The State Department offers and extra 15%, AguaPura will be offering up to 20% in Mexico City for hardship13. Another area where we feel that our expatriate employees will need to have help will be with education. We want to offer as comfortable opportunity as possible for our employees and their families. We will offer 100% education assistance for their children to go to American schools in Mexico. There will be one stipulation, which the children will have to maintain at least a 3.0 GPA while in school. If employees’ children cannot maintain a 3.0 GPA tuition assistance will be only 50% and anything below a 2.0 GPA will receive no assistance. With this we will also offer normal benefits that are found in the United States. This would include 401K, with a potential for matching from the company, health insurance, etc.

For those that are hired from the host country, Mexico, we will offer the average pay for their specific positions. For those in Human Resources we will be offering 55,000 Mexican pesos monthly. To Executives we will offer 100,000 Mexican Pesos monthly .14 One way we do want to help is to also offer a form of tuition reimbursement for good grades to employees still in school and for employees’ children as well. We will also be offering retirement plans and health insurances as well for our host country employees to make sure they feel like they are truly being taken care of by AguaPura.

13 ” U.S. Department of State | Home Page.” N.p., n.d. Web. 7 July 2017. 14 Average Salary | Mexico . N.p., n.d. Web. 07 July 2017.

Conclusion

AguaPura values success, and part of that success comes from building an organization that is lead by strong leadership. From the General Manager to the Inside Sales Representatives, each employee has a role in giving customers a great experience and a quality product. AguaPura values their employees and to show that, we will offer expatriates a hardship allowance, as well as full assistance in education so that employees’ children can go to American schools in Mexico contingent upon their performance. The average pay will be offered for residents of Mexico as well as tuition reimbursement, retirement plans, and health insurance.

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