Business Case 1: Tallyfood Computers

As it is mentioned, Tallyfood computers is a company which is one of the most important

in its market, this is thanks to the good products they have; but they are starting to face a
new problem, which is the entrance of a new company with better staff in the same market.
So Tallyfood computers needs to do an analyzes of its product and market for improving
the company and keep being in a high rank:

Market Penetration
It sells accountant packages to the restaurants industry, having the most of its customers,
65%, in the Far East of Singapore, 25% in the Indian subcontinent and 10% in other places
of the same Singapore.
In this way, what the company must do, is to implement a new strategy that helps them to
maintain these customers; so they should invest some of the borrowed money from the
bankers in hiring more people that might help in doing a faster software development.
Also the company could offer some discounts to those restaurants that have been customers
since long time ago, in order to motivate them to stay.

Product development
After doing the previous mentioned in market penetration and the company has secured
their clientele, they could improve their service by doing some surveys to them, in order to
know if their tastes and needs have changed and how do they feel with the offered service;
having the answer to this, the company could start investing in the development of an
innovated product, that fill in and satisfy the customers.

Market development/Diversification
It is important to mention that the option of entering to a new market and creating a totally
new product, is not the best idea to achieve in this moment, due to all the risks involved,
such as not being sure of how would the people, that they do not really know, respond to
the new product. Also the time needed to firstly analyze each one of the markets as the likes
and needs of most of the people. Because if we remember the case, it mentions that the
Eatmoney company is already taking Tallyfood Computers off of its high rankin, so they
need a new strategy that help them recover fast.

In conclusion, Tallyfood Computers needs to focus on their existing product in the same
existing market, just doing some improvements, such as hiring more people to develop the
software faster and offering some discounts to new restaurants that want to try the service,
in order to give more chances to other people and be more and better known.

Business Case 2: Entering a National Market

Lexus is a Japanese high-end car brand created by Toyota in 1989 for competing in the
USA and then in a world level, against Mercedes-Benz, BMW and Audi.
The company is well known because of its hybrid self-charging technology models, which
have led it to have a good position in the market. Also, after several corporate
reorganizations, by 2001, Lexus started to operate its own centers of design, engineering
and manufacturing independently from Toyota. This helped the company, to have a better
focus on its individual products.
Actually, it is being commercialized in more than 70 countries and it is planning to arrive to
Mexico, for which the company must do an external analysis, which will be shown below.

Social
Mexico is a country with several issues of social inequality; the lower class conforms the
60% of its population, while the higher one, the 6%, according to the Excelsior article,
which could be the main customers of Lexus. Also, according to an investigation of IP
Mark the average age of people who buy luxury cars is from 40 to 50 years old.
Otherwise, the most sold type of car in the country is the sedan, due to its wide spaces and
comforts that it offers.

Technological
Nowadays there are 36 models of hybrid and electric cars in Mexico, which are taking a
strong role in the market, due to the special treatment they receive on issues such as tenure,
verification, etc. because of these models, some car brands have implemented 400 charging
stations throughout all the republic.
Furthermore, the ICT have demonstrated to be one of the fastest growing sectors of the
Mexican economy, so advertising the product on social media and marketing it online is
essential.

Economic
Mexico’s GDP has decreased by a 17.3% due to the pandemic that we’re living nowadays,
and also these influences the unemployment rate of 2.9% as stated in an INEGI analysis of
this same year. Furthermore, talking about the automobile industry, drivers need to pay year
by year the payment of tenure, even though some states did not have to pay it, it is still
mandatory for lots of other states. As well as those cars above $250,000 of value, will have
to pay it too, the cost of this payment depends on each car, it is the 3% of its value. It is
worth mentioning, that one benefit of the hybrid cars is that they do not need to pay this.

Environmental
Mexico City is considered one of the most inhabited cities on the planet, which, together
with its degree of original development, a large amount of pollution, is a big problem that
increases day by day and affects its habitants and the environment. Vehicles are one of the
most important sources of air pollutants, due to the emissions from the exhausts of these
vehicles that contain carbon monoxide, hydrocarbons and nitrogen oxides that are released
into the atmosphere in significant quantities and form the "photochemical oxidizing smog",
this is why the Ministry of the Environment has two programs to ensure that vehicles
circulating in Mexico City tend to have the lowest possible emission of pollutants. These
programs are "vehicle verification" and "today does not circulate.” It is worth mentioning
that these programs, do not apply to hybrid and electric cars.
Additionally, Mexico stands out worldwide in the production of minerals such as silver,
copper, bismuth, arsenic, lead and zinc. As well as it is the tenth largest oil producer in the
world.

Political
The president of Mexico has a an ideology to govern that is not to the liking of many but
for others it is something logical, since, he prefers to promote the Mexican product, also its
culture and all its people, in such a way that he accepts external companies, but he puts
different conditions on them that can make the process more complicated. In addition, he is
trying to incorporate a communist system which has not turned out well for society and this
has led to different conflicts.

Legal
The Federal Labor Law establishes 12 minimum benefits to which Mexican workers have
access, these are: Christmas bonus, vacation and vacation bonus, Sunday bonus, weekly
rest day, maternity leave, adoption leave, paternity leave, breastfeeding period, seniority
bonus, utilities, resignation and redundancy payment.
Besides this, every foreign company needs to consider some laws in order to not be fined;
Foreign Trade Law, Customs Law, Law of General Import and Export Taxes, Value Added
Tax Law, Law of the Special Tax on Production and Services, Federal Law of Rights, etc.
It is important to mention the Federal Economic Competition Law, which has as an
objective to promote, protect and guarantee free competition and economic competition, as
well as prevent, investigate, combat and eliminate monopolies.
Although are laws that ensure the hygiene of the workplace, as well as the health of each
employee. Likewise, the consumers have The Federal Consumer Protection Law that aims
to promote and protect the rights and culture of the consumer and to seek equity, certainty
and legal security in relations between suppliers and consumers.

Ethical
88.8% of the Mexican population thinks that corruption is a practice that occurs frequently
among public servants or government employees, who are perceived to abuse their
functions to obtain personal benefits.

On the other hand, with regard to the private sector, INEGI reveals in its 2016 National
Survey of Regulatory Quality and Government Impact on Companies, that corruption in the
country is seen by this sector as one of the five main obstacles to the growth of companies.
Likewise, the World Bank estimates the monetary costs of this phenomenon and after
various analyzes it was concluded that it represents 9% of the country's Gross Domestic
Product (GDP).

In conclusion, Lexus, should enter to Mexico, in order to amplify its spectrum of

customers; but focusing more in the hybrid and electric cars, because as it was mentioned,
these new technology forms the strongest product in the motoring industry; as it is better to
take it to the most powerful states of the republic, such as Guadalajara, Monterrey and
Mexico City, because there are the biggest companies and therefore people of a high class.
Although, Lexus, has to checked out, point by point, each law, in order to avoid legal
issues. Also, over time, carry out its respective research and analysis of both, the market
and the product and keep it updated.
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