Mexico Summer Study Program


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Mexico Summer Study Program

  1. 1. 2010 Summer Study Program to MEXICO<br />
  2. 2. Outline<br />The Exchange Program<br />Mexico: Introduction and History<br />Society and Culture<br />Motivation and Business Management<br />Education<br />Business in Mexico:<br />The Role of NAFTA<br />Marketing<br />Human Resource<br />Business Culture<br />The Mexican Economy<br />Evaluation and Summary<br />Images from Mexico<br />
  3. 3. Motivation<br />Society and Culture<br />
  4. 4. The Exchange Program<br />2006:  Exchange program with Mexico is a possibility, visit Cuernavaca to evaluate possibilities.  Need program where student credit hours are exchanged.<br />2008:  Final agreement is signed in Spring, one student applies but changes mind.  Includes exchange of instructors.<br />  <br />
  5. 5. The Exchange Program<br />2009 Spring: Lack of advertising and swine flu keeps program from taking off.2009 Fall:  Jeff Bates begins promotion campaign.<br />2010:  First group of 8 students and one professor is sent to ITESM.  One student stays behind.  Tec students and professor show interest to attend AUM.  Tec would like to have same classes taught at AUM for Tec exchange students<br />  <br />
  6. 6. Motivation<br />Mexico: Introduction and History<br />
  7. 7. Mexico: Introduction and History<br />Quick Facts:<br />3 times the size of Texas<br />112 million people<br />GDP $ 1.48 trillion<br />Trading partner of the U.S. <br />Mexico accounts for about 10 percent of U.S. imports and exports <br />
  8. 8. Mexico: Introduction and History<br />Mexico was home to advanced Indian cultures<br />Conquest by the Spanish in the 16th century<br />In 1810 Mexico proclaimed independence<br />In 1910 the Mexican revolution took place<br />Strong government since 1929 (far from democracy)<br />PRI in charge until 2000<br />PAN in charge since 2000<br />Little improvement in the political system<br />Each presidential term brings uncertainty and change<br />Periodic crisis connected with presidential terms<br />
  9. 9. Motivation<br />Society and Culture<br />
  10. 10. Society and Culture<br />
  11. 11. Motivation<br />Motivation and Business Management<br />
  12. 12. Motivation and Business Management<br />Relationships and bonds in Mexican Business <br />Loyalty in Mexican Business<br />Promotions<br />Bonuses <br />
  13. 13. Taceria<br />The store owner has 12 Taceriain Mexico<br />Opening a profitable Taceriais a simple profitable endeavor<br />The store owner is also the store manager and accountant for all 12 restaurants<br />
  14. 14. Taceria<br />Hierarchy within the Taceria<br />MANAGER/<br /> STORE OWNER<br />SUPERVISOR<br />FLOOR STAFF<br />
  15. 15. Taceria<br />Loyalty vs. Education<br />Work Ethic vs. Education<br />Promotion from within the Taceria<br />
  16. 16. Burlington Textile Factory<br />Produces yarn which is used in the production of blue jeans<br />Mexican Business differs from American Business<br />
  17. 17. Burlington Textile Factory<br />There are 5 different levels at the plant ranging from level 3 to level 8<br />Promotion from within the company<br />If education is needed it is provided by the company<br />Equal opportunity among all workers<br />
  18. 18. Burlington Textile Factory<br />Bonuses<br />Gradually phased out<br />Difficulty in recognizing a small amount of people in this factory setting<br />Did not yield the expected results<br />
  19. 19. Burlington Textile Factory<br />Former American General Manager enlisted the help of the current General Manager<br />He realized Mexican business was not the same as American business<br />
  20. 20. Motivation<br />Education<br />
  21. 21. Education<br />92.8 % Literacyrate<br />The average Mexicangoestoschoolfor 7 years<br />#28 in qualityofeducation by OrganizationforEconomicCooperationandDevelopment (OECD)<br />61 of 100 people can use a phone<br />21 of 100 people can use theinternet<br />
  22. 22. Education Structure<br />
  23. 23. Preparatoria<br />Between the ages of 15-18<br />It is equivalent to high school and some college preparatory classes in America<br />Predatory schools are connected to universities <br />
  24. 24. Popular 2nd Languages<br />English<br />Chinese<br />French<br />German<br />
  25. 25. TopColleges<br />Instituto Politecnico Nacional<br />Dedicatedtoresearchandeducation<br />Best engineeringschool in Mexico<br />Costslessthan $1 USD<br />
  26. 26. TopColleges<br />Universidad Nacional Autónoma<br />Largest campus in theAmericas in Population<br />190th ranked in the World<br />2nd best in Ibreo-America<br />
  27. 27. TopColleges<br />LaSalle University<br />Oneofthe best in architectureandmechanicalengineering<br />Internationallyinvolved<br />PrivateUniversitystudentspayverylittlebuthhavetoworkforthegovernmenttorepaydebt<br />
  28. 28. Problems<br /><ul><li>Over 3.1 millionchildrenandaudolsecence do notattendschool</li></ul>Farming<br />Financialproblems<br /><ul><li>Underpaidteachers
  29. 29. Insufficatematerials
  30. 30. Courption</li></li></ul><li>Public vs. Private<br />Private<br />Public<br />Schoolis free<br />More accesable<br />Lessfunds<br />Offer more classes<br />More resources<br />Teachers are paidhigher<br />Smallerclasses<br />Betterbuildings<br />
  31. 31. Business<br />Low education = lesscompetition<br />Businesses use lowtechmeans<br />Businessestrainunderquailifiedworkers<br />American businessessetupcheaper<br />
  32. 32. Motivation<br />Business in Mexico - NAFTA<br />
  33. 33. The Role of NAFTA<br />WHO: NAFTA (the North American Free Trade Agreement.) Canada, Mexico, and the U.S<br />WHAT: NAFTA covers Canada, the U.S. and Mexico making it the world’s largest free trade area (in terms of GDP).<br />WHEN: NAFTA was launched 15 years ago<br />
  34. 34. NAFTA’s Purpose:<br /> NAFTA was launched to..<br /><ul><li>Reduce trading costs
  35. 35. Increase business investment
  36. 36. Help North America be more competitive in the global marketplace.</li></li></ul><li>Has NAFTA Fulfilled it’s Purpose?<br />NAFTA has..<br /><ul><li>Eliminated trade barriers</li></ul>Increased investment opportunities, and established procedures for resolution of trade disputes. <br />Increased the competitiveness of the three countries involved on the global marketplace. <br />
  37. 37. Motivation<br />Business in Mexico - Marketing<br />
  38. 38. Marketing<br />SMEs (Small/Medium Enterprises) make up 52% of GDP <br />3,105,157 SME<br />No advertising/promotions<br />Political Posters<br />Advertising and Promotions come from the huge Multinational firms<br />Coca Cola, Volkswagen, and Proctor & Gamble<br />
  39. 39. Marketing<br /><ul><li> Advertising</li></li></ul><li>Marketing<br />Most promotions, advertising, commercials centered on World cup, even the previews during the movies<br />
  40. 40. Motivation<br />Business in Mexico - HR<br />
  41. 41. Human Resource<br />Geert Hofstede Cultural Dimensions<br />
  42. 42. Human Resource<br />Parkdale Mills - Burlington<br />
  43. 43. Human Resource<br /> Success in managing people across the Mexican border is a matter of being able to translate an understanding of relevant cultural differences into action. The job of the human resource manager is not only to understand these differences, but to adjust the relationship between the organization and its workers to be in line with the cultural values of Mexico.<br />
  44. 44. Human Resource<br />The Mexican Federal Labor Law governs all labor matters, and the state labor boards, made up of representatives from the government, unions, and management, oversee the enforcement of the law<br />Workers may be dismissed only for causes specifically set out in the Mexican Federal Labor Law.<br />
  45. 45. Motivation<br />Business in Mexico – Business Culture<br />
  46. 46. Business Culture<br />Mexicans are polychromic, family oriented, “old fashioned” and more physical in their interactions than people in the U.S. <br />Relationship oriented and “laid back” culture<br />Lack of education in the workforce and changing role of women<br />Mexican business <br /> culture can be very <br /> ineffective<br />
  47. 47. Motivation<br />The Mexican Economy<br />
  48. 48. The Mexican Economy<br />GDP per capita $13,500 (PPP)<br />GDP decreased by 6.5 percent in 2009<br />Big differences between rich and poor<br />GDP per capita in D.F. is about $ 24,000 vs. 3,000 in Chiapas<br />It is almost impossible for the poor to raise their living standards<br />
  49. 49. The Mexican Economy<br />Political system does not allow progressive change <br />Limited opportunities for entrepreneurs <br />Inaccessible capital, high interest rates (20 percent and more)<br />No government support for starting businesses<br />Issues with organized crime detrimental for investors<br />
  50. 50. The Mexican Economy<br />Mexico offers a very cheap labor force: minimum wage is about $5 a day<br />
  51. 51. The Mexican Economy<br />Despite incentives for international companies (maquiladoras) Mexico is becoming a less attractive destination for international investors lagging behind countries like Brazil, Argentina, or Chile<br />The current socioeconomic situation in Mexico allows for the ruling elite to exploit the lower classes and sustain the system<br />
  52. 52. Motivation<br />Evaluation and Summary<br />
  53. 53. Evaluation and Summary<br />Mexico experienced a lot of growth in the past but did not reach its potential to an ineffective government<br />Lack of progress and issues with crime cause Mexico to become less competitive in the international playing field<br />Restricted access to capital, the limitations of Mexican culture, together with governmental restrictions do not allow the creation of a strong middle class that is crucial for a successful economy<br />The government has to become more of a democracy and follow a policy that would eliminate the huge differences between rich and poor<br />