Professional

EssayReport

Name: Dan Rodríguez Fuentes Student´s number:

2712773

Course title: Teacher’s name:

Doing business in the Americas Miriam Sifuentes

Module: Activity:
Module 1: General business Assignment 21
frameworks in the Americas

Date: March 2618th 2016 Team: N/A

Bibliography:
Mind Tools Team. (n.d.). Porter's Value Chain, Understanding How Value is
Created Within Organizations. Retrieved March 25, 2016, from
https://www.mindtools.com/pages/article/newSTR_66.htmThe Morning News,
M. S. (2015). State of Play. Retrieved March 17, 2016, from
http://www.themorningnews.org/article/state-of-play

McKinsey’s, P. G. (2014, October). A road map to the future for the auto
industry. Retrieved March 25, 2016, from
http://www.mckinsey.com/industries/automotive-and-assembly/our-insights/a-
road-map-to-the-future-for-the-auto-industry

The Wall Street Journal, D. A. (2015, April 8). Mexican Auto Industry Stays on
Record-Setting Track. Retrieved March 25, 2016, from
http://www.wsj.com/articles/mexican-auto-industry-stays-on-record-setting-
track-1428528574

Latin America Hoy, D. J. (2012, April 17). El sector automotriz en América

Latina. Retrieved March 25, 2016, from
http://latinamericahoy.es/2012/04/17/el-sector-automotriz-en-america-latina/
Financial Times, J. W. (2014, August 1). Lunch with the FT: Xavier López
Ancona. Retrieved March 17, 2016, from http://www.ft.com/cms/s/2/1bc2e7f6-
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17e1-11e4-b842-00144feabdc0.htmlForbes, P. M. (2011, September 10). The
Good, The Bad, And The Ugly Side Of Globalization. Retrieved March 17, 2016,
from http://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-
bad-and-the-ugly-side-of-globalization/#5ffa1c7a3c21Forbes, P. M. (2011,
September 10). The Good, The Bad, And The Ugly Side Of Globalization.
Retrieved March 17, 2016, from
http://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-
bad-and-the-ugly-side-of-globalization/#5ffa1c7a3c21

Carolyn Baker, C. E. (2011, March 28). The Collapse of Globalization.

Retrieved March 17, 2016, from http://www.carolynbaker.net/2011/03/28/the-
collapse-of-globalization-by-chris-hedges/

Forbes. (2015, April 22). Los tres enemigos del crecimiento en América
Latina. Retrieved March 17, 2016, from http://www.forbes.com.mx/que-
obstaculiza-el-crecimiento-en-america-latina/

Objective:
To understand the term 'cluster' and how it impacts businesses and regional
economies.

To take a look at franchising as a viable strategy for a Mexican business trying

to reach another national market in the Americas.

Procedure:
To carry out this report the following steps were taken:
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1. I investigated and reviewed bibliography related to the subject, in the
sources mentioned in this assignment.
2. I drafted my results and conclusion.

Results:
Apply Porter's Value Chain to the automotive industry in the Americas.
Firm Infrastructure
HR Managment
Desing/R&D
Procurement
Raw
Material Operations Manufacturing Distribution Sales/Marketing
Suppliers
Research and highlight the Latin American locations that play an important role
in the industry.

Find which locations abroad are similar to those here in Mexico and explain
why.
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Similar locations to those in Mexico are Argentina, Colombia, Peru and Colombia, and
that’s because we have almost the same regulations and we have an open economy.

Make a diagram with your analysis, and a written commentary about the
importance of clusters in the Mexican automotive industry (400 words).

The importance of clusters in the Mexican automotive industry

As we read in the lecture, the clusters play a major role in an economy growth.
We all know the economic impact that can be produce in a community where an
assembly factory is opened, in other hand we can see how damaged is an economy that
has to close this factories (the Detroit bankruptcy).
The automotive industry can lead Mexico to have better economic results, better paid
jobs and a positive impact at the eyes of the world as we develop as a country that can
do an efficient job.
In recent years, a new KIA assembly factory was opened in Pesqueria, Nuevo Leon, this
was a very important deal not just for the community, but for Mexico because this is an
opportunity to expand the cluster around the border with the United States and it can
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lead us to a better economic scenario. We also know that this is not an easy task to do
considering that we are one of the countries who spends less in research and
development.

KidZania's business model.

KidZania is a role-play theme park, where kids can do adults activities, such as
save money to the bank, be a doctor, a TV presenter, etc. The company brings
together strong brands as partners to support their own and offer a complete
entertainment and educational experience to kids between two and 16 years
old. The business model for Kidzania is based on two sources of revenue. On
the one hand, there are the sales generated by direct operation of the theme
parks—which bring in two-thirds of the company's billings. On the other, are
revenues gleaned from sponsorship by over 200 trademarks with which
Kidzania has set up contracts that permit these companies to operate the
different park installations.

Their international expansion strategy.

Following the stament “Skating to where the money is” KidZania first target after
the Mexican market, was the Asian market, where it have 4 franchises and it
currently has franchises planned for Turkey, Chile, Brazil, Malaysia, India,
Egypt, Thailand, Saudi Arabia, Kuwait, and China. This year they also are
planning to (finally) compete in the US market.

A list of desirable qualifications in potential franchisees.

As they list on their web site: “Our licenses are issued to one exclusive licensee
for each country” so, first of all the person who asks for the license must live in
the country where the franchise while take place, also that person has to know
the “know how” to make the park a commercial successful, and of course 20
million dollars as a minimum capital.

Your analysis of the current American business environment.

Things have changed since 1999 and despite the success of the business
model of KidZania, I still have my doubts about how well are going to be
received by the American market. Today kids prefer hi-tech gadgets instead of
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learn how to be a carpenter. I hope to be in a mistake and KidZania gets the
success that deserves.

Conclusion:
I cannot express how important is to an economy to try to conform a cluster, like I said
before it’s not just to the benefit of the community but for the country. KidZania has
showed us the way to all us students, entrepreneurs and business enthusiasts. The
logical thing would have been to open parks at the US after the success in Mexico but
they did quite the opposite, and that has given better results, even if the next franchise
don’t work in the US, the brand have conquered half world. Title:

Introduction:

Development:

Conclusion:

Objective.
To take a look at franchising as a viable strategy for a Mexican business trying to reach
another national market in the Americas.

Guidelines.
A vital element of a successful international market-entry strategy is an appropriate fit
of skills and capabilities between business partners, and this is specially true for the
franchising system. On this regard, every year Entrepreneur magazine publishes a
ranking of the top 200 global franchisers seeking international franchisees.

Now, go to their website and find the latest ranking available, and then provide a list of
the top 20 companies that pursue franchising as a mode of international expansion.
From an international business perspective, what are the most common features shared
by these 20 companies?
There is a big Mexican company that has been planning to enter the US market for a
long time, but hesitated and chose to deploy first a franchising program in other
regions of the world. We are talking about KidZania. Have you heard about them?
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Either way, do some research about Kidzania's case and take notes (you can start with
these articles published in The Morning News and in The Financial Times).
Once you are done with your research, please provide a detailed description of their
business model, their international expansion strategy, a list of desirable qualifications
in potential franchisees, and the institutional support and training programs typically
provided by KidZania (the franchiser).
According to what we have learned in this course so far, answer these questions..
What would you tell to KidZania's CEO about the current business environment in the
United States? Explain.
Would you recommend KidZania to enter the US market today? Why or why not? And
where exactly?
Are there any special improvements to be implemented before landing in the US or
should they just follow their regular franchising strategy? If so, what is there to
improve?
Deliverable.
An executive report covering and explaining:

KidZania's business model.

Their international expansion strategy.
A list of desirable qualifications in potential franchisees.
A description of the institutional support and training programs provided by Kidzania
to the franchisees.
Your analysis of the current American business environment, and your answers to point
4.
Evaluation criteria.
Each of the five sections is worth 20 points. Your capacity to be concise and accurate,
and originality of your ideas will also be evaluated.