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Nombre: Matrícula:

Roxana Denis Solís Reynoso AL02804406

Nombre del curso: Nombre del profesor:


International environments and Gustavo Alberto Rodríguez León
business operations
Module: Modulo 2 Actividad:
Lesson 7: World Financial Assignment 4: Analysis: What
Environments makes a global company
admirable?
Fecha: 21/04/2021
Bibliography:
Ferry K. (2018). World’s Most Admired Companies. 18/04/2021, de
Fortune Sitio web:
https://www.kornferry.com/insights/thisweekinleadershipfortune-worlds-
most-admired-companies
Lumen. (2019). Organizational Structure and Change. 18/04/2021, de
Lumen Sitio web:
https://courses.lumenlearning.com/principlesmanagement/chapter/organiza
tional-change
Riveroll C. (2019). Bimbo organizacional . 18/04/2021, de Universidad
Autonoma Puebla Sitio web: http://riverollblogspot.mx
Grupo Bimbo. (2017). Grupo Bimbo Is Honored as One of The Most Ethical
Companies in The World by The Ethisphere Institute. 18/04/2021, de
Grupo Bimbo Sitio web: https://www.grupobimbo.com/en/press-room/
bimbo-honored-one-most-ethical-companies-world-ethisphere-institute
Description
Analyze the most attractive emerging countries and the most admired
companies.

Objective
Identify the criteria and factors that determine the value of a certain company.

Requirements
Search for the Retail Development Index and Fortune’s most admired
companies.

Instructions

Part 1

The firm A.T. Kearney publishes an annual study to help retailers prioritize their
global development strategies by ranking the retail expansion attractiveness of
emerging countries, based on a particular set of criteria. Find the latest version
of this Global Retail Development Index attached to this assignment, and
answer these questions:

1. What criteria are used to identify the attractiveness of the retail


environment in emerging countries? List them and add a short
description. Which one do you think is the most important? Would you
add any other criterion?
 Country risk: Is a way of measuring the percentage of risk or the
percentage of uncertainty of a country's market, which can be
influenced by various factors such as economic, political, etc.
 Market saturation: Refers to the extent to which the market is
cornered by competitors, at the point of saturation, a company
can only achieve further growth through new product
improvements by taking existing market share from competitors
or increasing overall consumer demand
 Sale growth: Is a strategic indicator that is used in decision
making by executives and the board of directors and influences
the formulation and execution of business strategy.
 Population wealth: Refers to the purchasing power of a country's
population and the distribution of income.

I believe that all of them are important to make a decision,


however the country risk criterion is the most important since it
analyzes the management of the country economically, politically
and socially and analyzes if it is a good strategy to invest in that
country and what actions would be taken to execute it
successfully.

2. Categorize the top 5 countries by world region and compare them to


Mexico (page 8). What do you find? What can you say about Mexico
regarding the retail industry? What ideas and actions would you
recommend to the Mexican authorities in order to improve and move up
in the ranking?

China: Still promising, but challenging


GRDI rank: 1 (resumes the number one position)
Population: 1.43 billion
GDP per capita, PPP: $18,110
Total retail sales: $3,869 billion

India: Vibrant retail, in-store and online


GRDI rank: 2 (down one position)
Population: 1.37 billion
GDP per capita, PPP: $7,874
Total retail sales: $1,202 billion

Ghana: Africa’s new bright spot


GRDI rank: 4 (new entrant)
Population: 30.5 million
GDP per capita, PPP: $6,452
Total retail sales: $24.4 billion
Saudi Arabia: Regaining strength
GRDI rank: 7 (up four positions)
Population: 34.43 million
GDP per capita, PPP: $55,944
Total retail sales: $125.5 billion

Jordan: Ongoing stability


GRDI rank: 8 (up seven positions)
Population: 10.14 million
GDP per capita, PPP: $9,433
Total retail sales: $15.4 billion

Saudi Arabia: Regaining strength


GRDI rank: 7 (up four positions)
Population: 34.43 million
GDP per capita, PPP: $55,944
Total retail sales: $125.5 billion

One thing you can observe about the first 5 countries is the amount of
population they have does not compare to the amount Mexico has in
population. I can mention that Mexico is a country with a lot of potential in
several aspects but unfortunately it has not been managed in the most
intelligent way for which our country does not stand out in certain
rankings, I consider that one of the important keys is to improve
education and that allow valuable opportunities that help citizens and the
country, another action does not allow Mexico is the corruption that
exists in the upper echelons of government.

Part 2

Fortune magazine conducts an annual survey and publishes the rankings of the
world's most admired companies. Read the latest ranking available, and answer
the following questions:

3. What factors are used and considered to determine which companies are
most admired? List them.
o Ability to attract and retain talented people
o Quality of management
o Social responsibility to the community and the environment
o Innovativeness
o Quality of products or services
o Wise use of corporate assets
o Financial soundness
o Long-term investment value
o Effectiveness in doing business globally

4. Write a summary of these strategic and organizational success factors


and apply them to a Mexican company of your choice. In addition, do
some research and describe the corporate/organizational culture of that
company. *Answer these questions in the same document, which should
be around 2 pages in length (more or less).

Today, multinational corporations exist in unprecedented numbers.


Besides their headquarters, these commercial and industrial firms have
interests and plants established in several countries through which they
internationalize their capital, organizational processes, and production by
drawing on values, beliefs and procedures from these different locations.
Organizational change can take many forms. It may involve a change in
a company’s structure, strategy, policies, procedures, technology, or
culture. The change may be planned years in advance or may be forced
on an organization because of a shift in the environment. Organizational
change can be radical and swiftly alter the way an organization operates,
or it may be incremental and slow. In any case, regardless of the type,
change involves letting go of the old ways in which work is done and
adjusting to new ways. Therefore, fundamentally, it is a process that
involves effective people management.
A Mexican company that has been successful for many years and has
maintained its position and internationalized is Grupo Bimbo, who
currently has a Management Model based on the universal principles of
"World Class Quality", which has been implemented in all its operations.
To date, its plants are certified with the Global Food Safety Standard
endorsed by the Global Food Safety Initiative (GFSI).
It is also positioned as the most important bakery company in the world
in terms of brand positioning, production volume and sales. It is present
in 22 countries in Latin America, Asia and Europe.
We should not forget that Grupo BIMBO is a socially responsible
company in terms of health, nutrition, sustainability and the environment.
With the introduction of its biodegradable and more environmentally
friendly packaging, BIMBO has made great progress as a company.
In the area of nutrition, since 2004, BIMBO has implemented the
"Committed to your Health" program, aligned with the World Health
Organization's (WHO) Global Strategy on Diet and Physical Activity.
As a result, Grupo BIMBO is currently a leading company in its field and
with a social conscience, which seeks to contribute with certain
measures to help and prevent socially important issues. Grupo Bimbo is
honored as one of the most ethical entrepreneurial organization in the
world, thus becoming the first Mexican Company to be listed as 2017
World's Most Ethical Companies list made up by 124 companies in the
world. The World's Most Ethical Companies is a list drafted annually by
the Ethisphere Institute since 2007 without interruptions, with the
purpose of honoring outstanding companies from all over the world for
promoting ethical business standards and practices internally, enabling
managers and associates to make good choices, and shaping future
industry guidelines in terms ethics.

Conclusion
This activity helped me to understand the different criteria that are taken
into account in order to value a company within a ranking and what
aspects and strategies are applied by companies in order to meet their
objectives and lead companies on a successful path, I also understood
that there are political factors that influence business relations with
countries and that foreign investment or the establishment or arrival of
other companies is also important for a country as it helps economic
stability and generates jobs, but it is also important not to neglect local
companies.

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