The Argument Against Nozicks Distributive Justice Essay -- Law

Argument Against Nozick’s Distributive Justice Robert Nozick argues in his Entitlement Theory that there are three main topics in the justice of holdings: the acquisition of ‘un-held things’, the transfer of holdings, and the rectification of injustice in holdings.1 Nozick’s theory of what makes a transfer of holdings ‘just’ should be rejected for two key reasons and the rectification of injustice of holdings should be rejected for two key reasons. Robert Nozick declares a transfer of holdings just if the exchange is voluntary and if the holding being exchanged was originally acquired by just means.2 The first key point of this argument that should be rejected is the fact that the grounds for a ‘just’ transfer of holdings relies solely on whether or not the exchange was voluntary by both parties. With this low standard of justice, it permits voluntary exchanges in which one party unknowingly, probably because of circumstances they cannot control such as a limited mental capacity, could voluntarily commit to a transfer in holdings that will negatively affect them, either indirectly or directly. These people may voluntarily agree to a transfer in holdings that they would most certainly not agree to if they were in their right mind and could consider all of the factors playing into the transfer. There are these people who are not in their right mind or who don’t have to mental capacity to keep their best inter ests in mind, and there are also people who would willingly take advantage of these people to further their own selfish agendas. If one was to uphold Nozick’s grounds for what makes a transfer of holdings ‘just’, one is allowing people to cheat people with lesser mental capacities out of what is rightfully theirs through ... ...nd make the whole process of trade and acquisition very slow and cumbersome. Unless there was someway to effectively track and record every transaction in a fast and streamlined way, the rectification of holdings could effectively halt a market. Thus, for the four reasons stated above, Robert Nozick’s topics of transfer of holdings and rectification of holdings within his entitlement theory should be rejected. Not only are Nozick’s propositions inefficient and immoral, they may also create double standards as to what constitutes as an injustice. Works Cited 1 Robert Nozick, â€Å"’Distributive Justice’ from Anarchy, State and Utopia† in Tamar Szabà ³ Gendler, Susanna Siegel, and Steven M. Cahn (eds.), The Elements of Philosophy: Readings from Past and Present (New York: Oxford University Press, 2008), 309—310. 2Nozick, 309—310. 3Nozick, 310. 4Nozick, 311.

Compare and contrast Anne Hathaway and Frau Freud in Duffy’s Essay

Compare and contrast Anne Hathaway and Frau Freud in Duffy’s collection The World’s Wife There are both similarities and contrasts between ‘Anne Hathaway’ and ‘Frau Freud ‘One of the mail similarities between the two poems are the sexual references in both poems , the structure of the poems and that they are both written in a women’s voice. One of the main similarities between the poems is that they are both written by wives of two very famous men, William Shakespeare and Sigmund Freud. There are also similarities in the fact that there are sexual references in both of the poems. In ‘Anne Hathaway’ she uses these sexual connotations as a way of explaining why Shakespeare did leave her the second best bed. â€Å"The bed we loved in was a spinning world/of forests, castles, torchlight, clifftops, seas/where he would dive for peals.† In ‘Frau Freud’ the poem contains a list of euphemism for penises that men use. Duffy or Frau Freud uses these synonyms to completely debunk Freud theories with this list that brings the readers attention to Freud’s theories of the male obsession with the penis. The women in the two poems both enjoy sex, Anne Hathaway comments on how she and her husband shared their love with their actions and words. In ‘Frau Freud’ she also says that she enjoys sex â€Å"I’m as au fait with hunt-the-salami/as Ms M. Lewinsky" Another similarity between the two poems is that they are both written in sonnet form. They both contain fourteen lines and are written as a sonnet for two specific reasons. ‘Anne Hathaway’ is written in sonnet form because it was Shakespeare’s most famous and memorable form of expression. Duffy also used as a way of keeping Anne Hathaway’s love for her husband alive ... ...igraph to the poem is an extract from Shakespeare’s will which supposedly insults Anne Hathaway, but Anne explains in her sonnet to the people outside of their marriage that she would not want their best bed because this was not the bed they loved each others in. â€Å"as he held me upon that next best bed† Overall the similarities that can be seen between the two poems are mostly superficial comparisons and are not really relevant to the main themes of the poems. Even the similarities have contrasts within them, for example they are both about relations with their husbands and their sexual relationships. But Anne Hathaway looks upon Shakespeare with love and compassion, Frau Freud sees Freud as obsessive and has no emotions towards him and sees sex as a merely physical activity. So I must conclude that the poems contrast more than they are able to compare.

Medical Unknown

** Introduction : A medical microbiology lab performs testing on human samples collected from different body sites. The tests are used to detect and identify any microorganisms capable of causing disease. Knowing of unknown microorganism is important on how this microorganism   works and how it is structured, means knowing how it can affect humans. The purpose of this study was to identify an unknown bacterium by applying all methods that were previously conducted and learned in the medical microbiology laboratory class. **Materials : 1) Blood agar plate . 2) Mannitol Salt agar (MSA) plate. ) DNase agar plate . 4) Novobiocin disc . 5) Inoculating loop. 6) flame ( Bunsen burner) . 7) 1N hydrochloric acid (HCl) . 8) Two slides . 9) Plasma tube. 10) 3% Hydrogen Peroxide (H2O2) . 11) One unknown plate . 12) Crystal violet. 13) Gram’s iodine . 14) Safranin. 15) Alcohol . ** Methods : An unknown labeled with number 8 was given out by the lab instructor. The goal at this point was to determine unknown gram positive vacteria. The procedures performed consisted of sterile technique in addition to being followed as stated in the referenced course laboratory manual by Matar (1) , unless otherwise noted.Not all of the tests were performed on every culture. However, there are as some of the tests were used only for gram (+) others were even more specific and used only for cocci bacteria . The first procedure have been done was to observe and record the morphology of the unknown sample. However, Gram stain should be done to be sure that unknown sample were gram positive and to identify cells morphology. After that biochemical tests were chosen for unknown identification . first of all was done the catalase test to differentiate between the two types of cocci bacteria ( Staphylococcus and Streptococcus ) .Since unknown 8 was determined to be Staphylococcus coagulase test in addition to the following tests were performed on this unknown : 1) Production of DNase on DNa se agar. 2) Blood agar with novobiocin (NB) test . 3) Mannitol fermentation on Mannitol Salt agar (MSA) . **Results : Colonies morphology on plate was given were as follows : circular, raised, smooth, opaque, white-yellow pigmens. After knowing that it was Gram positive cocci , a catalase test and coagulase test was done , in addition to different plates incubation ( Blood agar , DNase and MSA plates ) .The following table lists all of the tests were done : Test| Purpose| Reagents| Observations| Results| Gram stain| To determine The gram rxn ofBacterium. | Crystal violet,Iodine, Alcohol&Safranin. | Purple cocci| Gram positive Cocci . | Catalase test| To determine ifBact. Posses catalase enzyme. | 3% H2O2| Oxygen bubblesWere observed. | Positive catalaseTest. | Coagulase test| To detect thePresence of â€Å"Clumping factor†. | Plasma. | No clot was Formed. | Negative coagul-ase test . | DNase plate Test| To determine ifBact. producesDNase enzyme. | 1N HCl . Cloudy zone (notCle ar one ). | Negative . | Hemolysis test(blood agar). | To determine ifBacteria do Hemolysis. | None . | No visible Changes wereAround colonies. | Gamma hemolysis| Mannitol Fermentation. | To determineThe ability of Bacterium to ferment mannitol. | None . | Color changeFrom pink to Yellow . | Positive mannitolFermenter. | Novobiocin Test| To detect Sensitivity or Resistance of Bact to NB Antibiotic. | NB antibiotic . | No zone ofInhibition aroundDisc. | Resistant bact. | Flowchart Unknown 8 Gram stain Gram positive cocci Catalse test(positive)Positive Negative Staphylococcus aureus. Streptococcus pneumonia Staphylococcus epidermidis. Viridans Streptococci Staphylococcus saprophyticus S. pyogens S. agalactiae Coagulase and Dnase test (Negative) Enterococcus sp. Positive Negative Staphylococcus aureus. Staphylococcus epidermidis. Staphylococcus saprophyticus Novobiocin test(Resistance)Sensitive Resistance Staphylococcus epidermidis. Staphylococcus saprophyticus MSA plate (Positive) Neg ative Positive Staphylococcus epidermidis. Staphylococcus saprophyticus Staphylococcus aureus. Blood agar plate(hemolytic test) (no hemolysis) Staphylococcus saprophyticus Unknown 8- S. saprophyticus **Discussion /Conclusion : It was concluded that Unknown 8 was S. saprophyticus . After applying Gram stain the gram positive bacteria was cocci in shape when viewed with a light microscope so a catalase test was performed.The bacteria was able to break down hydrogen peroxide upon its addition into water and gaseous oxygen which created bubbling and indicated a positive result. A sample was then inoculated on a mannitol salt agar plate. After incubation growth was present and the red media had turned yellow around the growth as a result of high levels of acid production. The data suggests that the gram positive bacteria was Staphylococci saprophyticus because it was gram positive, was catalase positive with the production of O, and was resistant to novobiocin disc.Staphylococcus saproph yticus is a strain of Staphylococcus bacteria. Approximately 25 percent of individuals carry this bacteria in the anal area, genitals, nose and mouth. People who walk barefoot are prone to acquire the bacteria from the floor. Staphylococcus may cause an infection when the bacteria enter a cut in any area of the body. These staph infections can range from boils to flesh-eating infections. The most common staph infection is Staphylococcus saprophyticus which commonly occurs in women.This staph is one of two bacteria which can invade the urinary tract. Approximately 20 percent of women who suffer from a urinary tract infection (UTI) will have another infection. **References : 1) Matar, Suzan. Medical microbiology Laboratory Manual. Jordan: University of Jordan publishing. 2) http://www. studymode. com/subjects/unknown-lab-report-on-gram-positive-bacteria-page1. html . 3) http://en. wikipedia. org/wiki/Gram-positive_bacteria . 4) http://www. ehow. com/about_5453276_staphylococcus-saprop hyticus-infection. html

Martin Scorsese

Martin Scorsese remains one of the most interesting directors in film history. He has long since been lauded as one of the true great auteurs and cinematic geniuses of modern times yet commercial success has often eluded him. Yes, he has had films that did well at the box office, but he also had a number of bombs and marginal hits. Quality wise, his films are truly special and this is why he has a solid base of loyal fans. Within that base are a number of people who seem to hone in on Scorsese's affinity for the downtrodden, the disaffected and the outsiders. [1] TAXI DRIVER, for example, was brilliant in the way in which it effectively portrayed New York's squalid Times Square wasteland as the perfect backdrop for the life of a loner who felt completely alone in a world in which he did not feel he belonged. The advertising tagline of the film went along the lines â€Å"somewhere in the world there is a loner trying to fit in.† Since the loner is an outcast he feels comfortable living amidst the squalor of the denizens of the classic image of Times Square, a brutal image of paste urban decay that has long since been forgotten, Such loneliness and rebellious imagery of outcasts has long since permeated Scorsese's films. GANGS OF NEW YORK, THE DEPARTED, MEAN STREETS and GOODFELLAS all seek to show a world where loners wish to live outside of the norms of society so as to craft their own unique â€Å"hole† in the world where they and their ilk can live. Then again, one does not have to be a sociopath or a gangster to wallow in this type of outlook. One could be a dancer/musician as seen in NEW YORK, NEW YORK or a pool hustler as seen in THE COLOR OF MONEY or a reclusive billionaire as evidenced by THE AVIATOR. Regardless of what type of character the director is presenting he always falls back on the notion that the character is a disaffected loner trying to forge a place in society against all odds and all problems. Often, this makes for compelling viewing and even more compelling characters. If there was a film that departed from this notion it would be CAPE FEAR, a remake that was probably Scorsese's weakest film. A remake of a film noir CAPE FEAR removed the film noir elements and replaced then with 1980's style slasher movie conventions.[2] It didn't work and ended being more of a lame – albeit wildly commercially successful – B-movie that has a minor cult following. Stick with the original instead, Scorsese remains a brilliant and inspiring director despite the fact that his subject matter has a tendency to wallow in the depressing. But, his films are not without hope or without a clear morality tale. Because of this the subject matter often rises above the nihilism or flaws of its characters and becomes a stunning insight into humanity and it foibles. Bibliography Christie, Ian. Scorsese on Scorsese. New York: Faber and Faber, 2004. Harland, Pamela. (2001) â€Å"Review of CAPE FEAR.† Retrieved April 18, 2008 [1] Christie, Ian. Scorsese on Scorsese. New York: Faber and Faber, 2004 [2] Harland, Pamela. Review of CAPE FEAR.

High-Tech Government Contracting Essay

FedBizOpps, or FBO, is the Federal government’s web site that posts all Federal procurement opportunities over opportunities with a value over $25,000. It can be thought of as the U. S. Government’s proposal central, or better yet, a request for proposal (RFP) central (â€Å"TurboGSA/What is a FedBizOpps/What is FedBizOpps? ,† n. d. , para. 1). Top Three Reasons Why I believe FedBizOpps Will Enhance Opportunities for Minorities The top three reasons why I believe FedBizOpps will enhance opportunities for minorities is FedBizOpps gov (pronounced fed biz opps) provides a sophisticated search engine for finding more than 40,000 immediate RFP opportunities, as well as archived records. It also lists possible future federal contract opportunities. All GSA Schedule solicitations are also listed on FedBizOps which will assist in bidding for current and future contracts. Several training programs are available at the site to teach you the mechanics of using the FBO system (â€Å"TurboGSA/What is a FedBizOpps/What is FedBizOpps? ,† n. d. , para. 1). The Factors the Government Used to Design and Build This Website The factors the government used to design and build this website are global accessibility, ease of usage, and availability. Due to the need for the government to ensure that the world or every person accesses information in this website, the government made the opportunity accessible in the world wide website (instead of intranet). Through this effort by the government, it is possible for all people all over the world to catch up on what the federal government is doing in terms of procurement opportunities. In addition, the government wanted to ensure that the website is easy to use. Because the government had in mind that all people (minority and majority groups) will be using this website, the website was designed with the information posting page as the homepage to make it easy for people to use the website. The website itself is also a search engine for federal business opportunities with a search boxes at the top of the homepage to ensure that people can reach their destination WebPages with ease. The third factor put in mind when designing this website is availability. The website is hosted on secure and reliable servers. This ensures that chances of being offline are minimal, something that makes this website available and reliable at all times (â€Å"FedBizOpps: the shortened form of the federal business opportunities,† n. . ). Three Improvements I Predict That Could Be Applied to the FedBizOpps Website There are three improvements I predict that could be applied to the FedBizOpps website in the future. First, the website needs to be highly optimized in search engines. This will enhance easy access by people who are searching for information regarding federal procurement opportunities even if they have no idea about the FedBizOpps website. This is, in fact, a way of marketing that is cost-effective. Secondly, the website should have an application to display the most recent federal business opportunities at the top of the website. These may be designed to be â€Å"mobile† through the use of â€Å"marquee† HTML tags to ensure they catch the eye of the reader, thus ensuring that people who visit the website get information about the most recent opportunities at first sight. Thirdly, a summary of the information about the website should be included in the homepage. This will enhance visitors get a glimpse of the function of the website. For instance, when one accesses the homepage, it is hard to understand the function of the website before viewing a number of WebPages. This may discourage new visitors who do not understand what the website is all about (â€Å"FedBizOpps: the shortened form of the federal business opportunities,† n. d. ). Three Services Offered By the FedBizOpps Website through the Website Three services offered by the FedBizOpps web site through the website are: government users can post and manage, as well as, award procurement opportunities. This information posted is available for mass readership. On the website, a tab to view opportunities is placed close to the login form making. In addition, information regarding the possibility to view the opportunities without logging in is displayed near the link to motivate visitors to view opportunities. This logged in ensures that the information is easily accessible. However, this may not translate to many views of the opportunities. This may be improved through placing many â€Å"view opportunities† tabs with various classifications such as states, days, type of opportunities and so on. This is a sure way that visitors will be motivated to view only those opportunities that they interested in. In addition, the website offers a platform for vendor and citizens to search, follow-up and retrieve opportunities. Here, one does not need to be logged in to find opportunities making the information available to all. In contrast, the fact that one needs to log in to retrieve opportunities makes it hard for people who cannot register or remember passwords to access this service. Furthermore, the website services as a marketing platform for government approved business opportunities. In this regard, when a business opportunity is posted on this website, it is easy for people to trust it. However, the failure inability of the federal government to allow posting of classifieds makes this service a limited one (â€Å"FedBizOpps: the shortened form of the federal business opportunities,† n. d. ).

Accounting Hw

House of Organs, Inc. , purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $2,500 each. The average cost of an organ from the manufacturer is $1,500. House of Organs, Inc. , has always kept careful records of its costs. The costs that the company incurs in a typical month are presented below in the form of a spreadsheet: Costs Cost Formula Selling: Advertising . . . . . . . . . . . . . . . . . . . . . . . . . $950 per month Delivery of organs . . . . . . . . . . . . . . . . . . $60 per organ sold Sales salaries and commissions . . . . . . . . . $4,800 per month, plus 4% of sales Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $650 per month Depreciation of sales facilities . . . . . . . . . . $5,000 per month Administrative: Executive salaries . . . . . . . . . . . . . . . . . . . $13,500 per month Depreciation of office equipment . . . . . . . $900 per month Clerical . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,500 per month, plus $40 per organ sold Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . $700 per month During November, the company sold and delivered 60 organs. Required: 1. Prepare an income statement for November using the traditional format with costs organized by function. 2. Redo (1) above, this time using the contribution format with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. 3. Refer to the income statement you prepared in (2) above.Why might it be misleading to show the fixed costs on a per unit basis? SOLUTION 1. | |House Of Organs, Inc. | | |Income Statement | | |For the Month Ended November 30 | | | | | | | |Sales (60 organs ? 2,500 per organ) | |$150,000 | | |Cost of goods sold | |  Ã‚  Ã‚  90,000 | | |(60 organs ? 1,500 per organ) | | | | |Gross margin | |60,000 | | |Selling and administrative expenses: | | | | |Selling expenses: | | | | |Adv ertising |$  Ã‚  Ã‚  Ã‚  950 | | | |Delivery of organs |3,600 | | | |(60 organs ? $60 per organ) | | | | |Sales salaries and commissions |10,800 | | | |[$4,800 + (4% ? 150,000)] | | | | |Utilities |650 | | | |Depreciation of sales facilities |  Ã‚  Ã‚  5,000 | | | |Total selling expenses |  21,000 | | | |Administrative expenses: | | | | |Executive salaries |13,500 | | | |Depreciation of office equipment |900 | | | |Clerical |4,900 | | | |[$2,500 + (60 organs ? 40 per organ)] | | | | |Insurance |  Ã‚  Ã‚  Ã‚  Ã‚  700 | | | |Total administrative expenses |  20,000 | | | |Total selling and administrative expenses | |  Ã‚  Ã‚  41,000 | | |Net operating income | |$? 19,000 | |2. | | | |House Of Organs, Inc. | |Income Statement | | |For the Month Ended November 30 | | | | | | | | |Total |Per Unit | | |Sales (60 organs ? $2,500 per organ) |$150,000 |$2,500 | | |Variable expenses: | | | | |Cost of goods sold |90,000 |1,500 | | |(60 organs ? 1,500 per organ) | | | | |D elivery of organs |3,600 |60 | | |(60 organs ? $60 per organ) | | | | |Sales commissions (4% ? $150,000) |6,000 |100 | | |Clerical (60 organs ? $40 per organ) |  Ã‚  Ã‚  Ã‚  2,400 |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  40 | |Total variable expenses |  102,000 |  1,700 | | |Contribution margin |  Ã‚  48,000 |$  Ã‚  800 | | |Fixed expenses: | | | | |Advertising |950 | | | |Sales salaries |4,800 | | | |Utilities |650 | | | |Depreciation of sales facilities |5,000 | | | |Executive salaries |13,500 | | | |Depreciation of office equipment |900 | | | |Clerical |2,500 | | | |Insurance |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  700 | | | |Total fixed expenses |  Ã‚  Ã‚  29,000 | | | |Net operating income |$  19,000 | | 3. Fixed costs remain constant in total but vary on a per unit basis with changes in the activity level. For example, as the activity level increases, fixed costs decrease on a per unit basis. Showing fixed costs on a per unit basis on the income statement make them appear to be variable costs. That is, management might be misled into thinking that the per unit fixed costs would be the same regardless of how many organs were sold during the month. For this reason, fixed costs should be shown only in totals on a contribution-type income statement.

Case Analysis of Wal-Mart Mexico

1. Introduction 1. 1 History: Wal-Mart first stuck its toe into Mexico in 1991 through a joint venture with Cifra, Mexico’s leading retail company, initially limited to developing Sam’s Club warehouse stores in Mexico. The tremendous success of the first Sam’s Club stores and the impending passage of the North American Free Trade Agreement (NAFTA) encouraged further collaboration, and Wal-Mart and Cifra expanded their joint venture through the 1990s. Wal-Mart purchased a majority stake in Cifra in 1997. Prior to the joint venture, Cifra’s lineup included Aurrera autoservicios (superstores selling food, clothing, and a variety of other items), Superama supermarkets, Suburbia department stores, and Vips restaurants. To this roster, Wal-Mart added Wal-Mart superstores (shifting Aurrera to a budget niche and relabeling its stores Bodega) and Sam’s Club warehouse stores, as well as introducing two new restaurant formats. Wal-Mart-Cifra had fewer grocery stores (though more stores of all formats) than either of competitors Gigante and Comercial Mexicana as of 1993, but had overtaken them by 2000 and today has 326 Wal-Mart, Aurrera, Sam’s, and Superama stores. Wal-Mart rolled out its â€Å"every day low prices† (EDLP) policy in Mexico in 1999-2000. It controlled 49 percent of Mexican supermarket sales in 2001. Wal-Mart also began to post price comparisons with other chains, a practice that in 2002 got it expelled from ANTAD, Mexico’s National Association of Supermarket and Department Stores. Today, 62 percent of Wal-Mart Mexico’s shares are owned by the U. S. based parent, Wal-Mart Stores. 2. Vision The vision of the Company summarizes their commitment to Mexico: â€Å"Contribute toward improving the quality of life for Mexican families. † Their basic belief is Respect for the Individual, Service to Our Customer, and Strive for Excellence, with Integrity being the underlying principle. 1. 3 The Mission Statement The mission upholding the Company’s permanence and success is value creating. All their efforts, strategies and actions are aimed at this objective. . Organizational Chart: Exhibit: 1 Exhibit: 1 2. Divisions of Wal-Mart Mexico: Wal-Mart Mexico’s size and geographic coverage dwarf those of its competition. It operates 694 stores in 73 Mexican cities. The Retail formats of Wal-Mart Mexico are: †¢ Bodega Aurerra †¢ Wal-Nlart Supercenter †¢ Sam’s Club †¢ Superarna †¢ Suburbia and †¢ Vips Although 360 of these stores are self-service (the others are restaurants [Vips] and department stores [Suburbia]), Wal-Mart Mexico has 55 percent of the Mexican retail market. The three major formats (Aurerra, 30 percent; Wal-Mart Supercenter, 27 percent; and Sam’s Club, 29 percent) together provide more than 86 percent of its revenues. 44 percent of the entire countries population is concentrated in 25cities metro areas. A bit more than 18 percent live in the capital city’s metro area. Mexico’s rural population accounts for about 34 million or about 33 percent of the country’s total population. The retail industry does not have a ingle outlet in the rural concentrations, which leaves the market to neighborhood Stores, public markets, or street vendors, which, as individual businesses, do not have a significant presence in the market as a whole. |FORMAT |NAME |#OF STORES |# IN 25 MOST IMPORTANT |% IN 25 MOST IMPORTANT | | | | |URBAN AREAS |URBAN AREAS | Warehouse |Bodega Aurerra |161 |117 |73% | |Suparmarket |Superama |50 |50 |100% | |Hypermarket |Supercenter |86 |74 |86% | |Savings Club |Sam’s Club |61 |42 |68% | |Restur ant |Vips |209 |190 |91% | | |El Porton |46 |42 |91% | |Apparel |Suburbia |53 |53 |100% | |Total | |666 |568 |85% | 3. Target Segments: One of the secret of Wal-Mart Mexico’s success is that it has a clearly defined target market. The Aurerra format (162 stores) is targeted at lower- to lower-middle income classes; these Bodega stores offer 48,000 SKUs. Sam’s Club (61 stores) offers a much more limited variety of products (4,000 SKUs) and targets consumers and businesses buying in volume. The Wal-Mart Supercenter stores (89 units) offer the widest variety of goods (80,000 SKUs). Superama (48 stores) contributes only 3 percent of the company’s sales; these stores offer a variety of goods (35,000 SKUs) but are located in residential areas for convenience. Wal-Mart Mexico’s Suburbia 50 department stores target the middle class, offering fashionable apparel at reasonable prices; these stores contribute 6 percent of the company’s sales. The Vip’s chain of restaurants (284 locations) represents 3 percent of the company’s sales. The vast majority of Wal-Mart Mexico’s stores are located in the 25 most important metro areas in the country. 4. Geographic Coverage [pic] [pic] 5. Responsibilities To the Stakeholders The Customer — The word ‘always' can be seen in virtually all of Wal-Mart Mexico’s literature. Their belief is that the customer is always right, and the stores are still driven by this philosophy. Their commitment to the customers is to Offer the right merchandise assortment, in the right amount, and at the right time at Everyday Low Prices, Always. they ensure and improve the quality of their service to provide the best possible shopping experience. Shareholders – Look after and grow the equity they have been entrusted with, observing the highest standards of integrity and the Corporate Governance best practices is their commitment towards their shareholders. The actions include †¢ foster transparency, timely presentation of information to the shareholders and ethical company management, which in turn contributes towards increasing the value of the Company, all within a control environment and with Corporate Governance best practices. †¢ Through the Statement of Ethics and Compliance program, they ensure that Integrity is an ever-present and global principle. †¢ They develop and every day instill a culture of compliance with beliefs, laws, standards and policies. The Employees – Wal-Mart Mexico believed in listening to employees and challenging them to come up with ideas and suggestions to make the company better. Its first contribution as a corporate citizen is its employment of more than 109,000 people throughout the country and the extensive training programs (4. 2 million hours in 2004) it provides for those employees. The firm highlights its diversity since 48 percent of its employees are female. At each of the Wal-Mart stores, signs are displayed which read, ‘Our People Make the Difference. ‘ One of Wal-Mart's goals was to provide its employees with the appropriate tools to do their jobs efficiently. They provide a sound organizational culture (Integrity, Respect for the Individual, Service to Our Customers, and Strive for Excellence). Personal and professional development for their people is a priority, as well as providing job security for them and economic stability for their families through continuous growth as a company and the diversity of our operations. They have also created programs to improve the quality of life for our Associates, promote gender equality, and benefit the Associates as well as their families. The Community– Wal-Mart is involved in many community outreach programs and has launched several national efforts through industrial development grants. They create and foster programs that promote development and improve the quality of life for all families throughout Mexico. Their initiatives to do so are †¢ Through their programs and on-going support of organizations, they contribute towards generating sustainable changes and creating solutions for malnutrition and food safety issues throughout the country. †¢ They convert community actions into local commitment, allowing each business unit of the Company to become an agent of change. †¢ Wal-Mex also provides direct financial assistance to support high impact projects regarding nutrition for communities in need. The Suppliers — The commitment towards their supplier is to support their development, growth and Consolidation. The purchasing agents of Wal-Mart are very much focused people. ‘Their highest priority is making sure everybody at all times in all cases knows who's in charge, and it's Wal-Mart'. ‘Even though Wal-Mart was tough in negotiating for absolute rock-bottom prices, the company worked closely with suppliers to develop mutual respect and to forge long-term partnerships that benefited both parties'. Actions include the following †¢ They provide development opportunities to suppliers through constant growth. †¢ Through Regional Trade Fairs Wal-Mart Mexico develop local suppliers as a means of providing additional support for small and medium enterprises. They have created areas of development for the textile and garment-making industry, the production chain for perishables, and new regional products. †¢ Our information systems help suppliers to plan production and buy of raw materials, thereby creating greater operations efficiencies and market competitiveness. 6. Financial Analysis: [pic] Financial Highlights 7. Strategic Analysis 7. 1 SWOT Analysis: A scan of the internal and external environment is an important part of the strategic planning process. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. Thus, it is instrumental in strategy formulation and selection and simultaneously to develop a competitive advantage. Strengths: ? Good Corporate Citizen: Wal-Mart Mexico has a positive reputation in Mexico as a good corporate citizen, having received prestigious awards for its actions. It publishes an annual social responsibility report, highlighting its activities as a corporate citizen in Mexico. Wal-Mart Mexico has been certified as a â€Å"Socially Responsible Enterprise† since 2001, one of only a handful of companies in Mexico to receive such an honor. ? Market Leader: It is by far the leader in the Mexican retail industry after less than a decade and a half of operations there providing low-price goods to everyone. ? Largest Private Employer: Wal-Mart is Mexico s largest private employer, with 109,057 employees in valuable jobs in many local communities with 55 percent of the Mexican retail market. Wal-Mart argues that its first contribution as a corporate citizen is its employment of more than 109,000 people throughout the country and the extensive training programs (4. 2 million hours in 2004) it provides for those employees. The firm highlights its diversity since 48 percent of its employees are female. ? Large Market Share: Today, 62 percent of Wal-Mart Mexico’s shares are owned by the U. S. based Parent, Wal-Mart Stores. ? Largest Foreign Subsidiary Wal-Mart Mexico is the largest foreign subsidiary of Wal-Mart Stores and provides approximately 25 percent of the parent’s foreign sales. Environmental Performance Wal-Mart Mexico’s environmental performance includes investing over $8 million in 2003 and 2004 to open 73 water treatment plants and a variety of recycling, energy conservation, and pollut ion-reduction activities. It also emphasizes that more than 90 percent of the products sold in its stores are supplied in Mexico. ? Local Suppliers Wal-Mart Mexico sources from local suppliers. It has leveraged its volume buying power with its suppliers. It negotiates the best prices from its vendors and expects commitments of quality merchandise. So it can minimize the cost of the goods and can offer the customers a lower selling price as well. Good promotion and sponsorship Wal-Mart Mexico also is involved in a number of philanthropic activities, including programs focused on education, nutrition, homelessness, and health. In 2004, it sponsored a National Wal-Mart Mexico Volunteer Day, and 2,476 of its associates participated. ? Good Location Good location is one of the very important criteria for being successful in the industry. The vast majority of Wal-Mart Mexico’s stores are located in the 25 most important metro areas in the country. The retail industry does not have a single outlet in the rural concentrations, as these areas do not have a significant presence in the market as a whole. Increased sales Volume Wal-Mart Mexico’s large volume of sales also indicate its strength. The firm’s net income has increased dramatically from 2002 to 2004, from $485 million to $702 million. the total square meters of space have increased between 2001 and 2004, as have sales per square meter and net income per square meter. ? Proper Segmentation Wal-Mart Mexico has a clearly defined target market. The Aurerra format is targeted at lower- to lower-middle income classes; these Bodega stores offer 48,000 SKUs. Sam’s Club targets consumers and businesses buying in volume. The Wal-Mart Supercenter stores, Superama are located in residential areas for convenience. Wal-Mart Mexico’s Suburbia department stores target the middle class, offering fashionable apparel at reasonable prices. Weaknesses: ? Location: Though majority of the stores of Wal-Mart Mexico’s location are very good, one of the stores has been located near a world historic site, the pyramids of Teotihuacan, has elicited global disapproval from activist groups and is a public relations disaster drawing large local protests. For many, it is just another example of Wal-Mart’s lack of sensitivity to community and humanity. ? Lack of clear Strategic plan Though Wal-Mart Mexico has a clear Vision, Mission and strategy they do not have an integrated version of these. Thus, they need a clear strategic plan for the future. ? Easily copied strategy Competitors are learning to respond to Wal-Mart’s size, efficiency, and success. Wal-Mart stores operate according to their ‘Everyday Low Price' philosophy. All of the main competitors are now competing with Wal-Mart now offers some version of its â€Å"every day low prices† (EDLP) formula. Wal-Mart’s competitors insist that there is now no significant price difference, and many Mexican consumers seem to have drawn the same conclusion. Opportunities: ? Scope of Diversification The convenience stores like corner stores, public markets, and street vendors business is relatively new in Mexico, there is a scope of diversification in future for Wal-Mart Mexico. Joint ventures Through a 50—50 joint venture with Office Depot and a 51—49 joint venture with Radio Shack, Grupo Gigante runs 98 Radio Shack stores throughout Mexico. Seems that Wal-Mart Mexico has an opportunity to follow such approaches to be more successful in future. ? Improved services Like Soriana, another competitor of Wal-Mart Mexico it can provides: discount specials, loyalty card programs, big-ticket item raffles and contests (e. g. , a BMW X5 automobile), outgoing employees, and mariachi band entertainment in order to appeal to female middle-class consumers. ? Foreign Penetration Grupo Gigante is successfully penetrating foreign markets. Wal-Mart Mexico can also follow the same like its competitor in order to enter in a new era. ? Strategic Plan Though Wal-Mart Mexico does not have a clear strategic plan, there is a scope to make a good one to do better in future. Threats: ? Aggressive Competitive moves of Competitors The competitors of Wal-Mart Mexico proved themselves as quick respondents. They took various desperate initiatives to response with Wal-Mart Mexico’s approaches. As result shows that The Comercial Mexicana (CM) has slipped to third in terms of market share in the Mexican retail sector. Grupo Gigante currently has 13 percent market share in the Mexican retail industry. Soriana’s sales have grown at an annual rate of 17 percent since 1994, and it has no debt. Some of their initiatives are: i. Appealing logos of competitors Chedraui’s corporate logo indicates â€Å"Chedraui: It Costs Less. † Its mission is simply â€Å"to provide the products that customers want at the best price. † ii. Foreign Penetration Grupo Gigante is successfully penetrating foreign markets. iii. Joint Ventures Through a 50—50 joint venture with Office Depot and a 51—49 joint venture with Radio Shack, Grupo Gigante runs 98 Radio Shack stores throughout Mexico. iv. Superior Services Soriana provides: discount specials, loyalty card programs, big-ticket item raffles and contests (e. g. a BMW X5 automobile), outgoing employees, and mariachi band entertainment in order to appeal to female middle-class consumers. v. Prices differences Comercial Mexicana and Soriana now aggressively publicize price differences with Wal-Mart and Aurrera. Wal-M art’s competitors insist that there is now no significant price difference and now many Mexican consumers seem to have drawn the same conclusion. ? ANTAD The Asociacion Nacional de Tiendas de Autoservicio y Departamentales (ANTAD) is the trade association that represents the retail industry in Mexico. Wal-Mart left ANTAD in October 2002 because the association’s new ethics code explicitly stated that members should not publish any type of promotions stating another member’s prices. Since Wal-Mart is not a member of ANTAD, all ANTAD members now publish their lower prices compared to Wal-Mart’s, when they have them. ? Sinergia Because of Wal-Mart’s huge purchasing power, three other retailers—Comercial Mexicana, Gigante, and Soriana—have formed a purchasing cooperative. This cooperative, Sinergia, first introduced in 2002 to compete against Wal-Mart. The cooperative was first thought of as a competitive-directed measure for purchasing imported goods, mainly electronics, where Wal-Mart has been enormously successful, but it now has been extended to such other types of merchandise as groceries and packaged food. ? Specialized Retailers The Mexican retail sector is fragmented; there are a wide variety of retail formats, many of which are informal. Because many shoppers in Mexico do not have access to automobiles, and may not have large refrigeration space to store perishables, very small independent grocery stores have thrived for decades throughout Mexico. This business is controlled by the two Mexican beer makers. Cerveceria Modelo, with the Extra stores and 7-Eleven; and Cerveceria, Cuauhtemoc Moctezuma, with Oxxo (about 3,OOO stores). The concept is beginning to include gas stations, and many small entrepreneurs have a limited regional presence. Major national chains exist in the department, pharmacy, and electronics store formats. ? Mexican Economy The Mexican economy is very volatile; the retail sector is subject to this volatility. Throughout the latter half of the 1990s, inflation and interest rates still annually averaged well over 10 percent. The peso continues in decline in value relative to the dollar. The economic volatility has a negative impact on consumers and business alike. Mexican consumers are very price sensitive because of the economic challenges that the country faces. ? Various Criticisms Despite extensive social responsibility activities and its record as the largest private employer in the country, the potential for criticism of its purchasing practices and supplier and employee relations, as well as its impact on local small businesses and communities, loom as a significant threat 7. PEST Analysis: PEST Analysis The purpose of PEST analysis is to analyze the external environment and identify the strategic opportunities and threats in the organizations operating environment that will affect to it pursues its mission. This analysis requires assessment of the environment in which the company op erates. It also analyzes the country or national environment of the country and takes into account the wider socio economic and macro–environment that may affect the company and the industry. Political Factors Government: Mexico is a federal republic—hence its official name Estados Unidos Mexicanos—operating under a centralized government. Governmental powers at the federal level are divided between executive, legislative, and judicial branches, but in political practice the executive, that is, the presidency, has had strong control over the legislative branch. Only in recent years has the legislative branch seen its power increase because of the strengthening of the multiparty system. The president is elected by popular vote for a six-year period and is both the chief of state and head of government. The president appoints cabinet members. The legislative branch is a bicameral National Congress consisting of the Chamber of Deputies and the Senate. The Chamber of Deputies has five hundred members, elected for three-year terms; the Senate has 128 members, elected for six-year terms. In the judicial branch the Supreme Court of Justice is the highest tribunal. The federation is made up of thirty-one states and the Federal District (the capital). Each state has a governor, who serves a six-year term, and a unicameral legislature. Both are elected by popular vote. Before 1997, the chief of the Federal District was appointed by the president, but has since been elected directly by popular vote. The Federal District also has an Assembly of Representatives. The local administrative level is the municipality, which is governed by a popularly elected mayor and a municipal council for three-year terms. Suffrage is universal and mandatory (but not enforced) for those over the age of eighteen. Leadership and Political Officials: The modern presidency stands in a long tradition of pre-Columbian rulers (tlatoani), Spanish colonial viceroys, and nineteenth century and revolutionary caudillos. The president holds great discretionary powers. Power and leadership are attained through the management of personal relations, which are ruled by principles of loyalty, trust, and reciprocity. These informal networks are interconnected in a pyramidal way and form the real centers of decision making. Vertical patron-client relations can be found in all segments of society. Interactions between politicians, union leaders, top bureaucrats, and ordinary people also take place through these networks. In recent years, academic credentials and technocratic knowledge have become more important than political and electoral experience. Besides being chief of state and head of government, the president has traditionally been the leader of the Institutional Revolutionary Party (PRI), which held power from 1929 to 2000. During much of the twentieth century, Mexico was a one-party democracy. The PRI emerged from the revolution and incorporated mass organizations of workers, peasants, and urban middle classes. Because of its particular origins, its longevity in power, and the influence of diverse interest groups, the PRI is difficult to classify ideologically. There are two other significant parties in Mexico. The conservative National Action Party (PAN) began enjoying electoral success at the state level in 1985. The social-democratic Party of the Democratic Revolution (PRD) emerged as a breakaway movement from the PRI in 1987 and began governing Mexico City in 1997. Both the PAN and the PRD aim at democratization, but the PRD also proposes a more equal distribution of wealth. The dominance of the PRI in federal elections was finally broken on 2 July 2000, when the candidate of the PAN won a stunning victory with 43 percent of the vote. Social Problems and Control: Both petty and organized crime increased in the 1990s. Muggings and burglaries, increasingly violent, became widespread. Drug-related violence constituted another serious cause of concern. Public security has thus become a key issue for ordinary citizens and the authorities. At the same time, the police and the judiciary system are widely believed to be ineffective and lack public credibility, partially due to unresolved high-profile political assassinations and corruption. This has led to incidents of people taking the law into their own hands. Paid neighborhood watches are common wherever people can afford them. Private security guards no longer patrol only at banks and government buildings but also at medium-sized offices and shops. In response, the government founded an additional police force in 1999, the National Preventive Police. Military Activity: Mexico has had civilian presidents since 1946 and has not been involved in international disputes in recent decades. The primary role of the military is the maintenance of internal order. The Ministry of National Defense (the army and air force) and the marines together comprised an armed force consisting of almost 240,000 members in 1998. Military expenditures have increased substantially in recent years and amounted to $2. 5 billion (U. S. ) in 1996, accounting for almost 1 percent of the GDP. In recent years the military has been involved in two serious problems: the armed uprising in the state of Chiapas and the struggle against drugs. Mexico is a major supplier of marijuana and heroin to the U. S. market and is the primary transshipment country for cocaine from South America. In 1998 the government spent $147 million (U. S. ) to combat drug trafficking, an amount that has increased spectacularly in recent years. Economic Factors Mexico City is a place to love and loathe, with everything one expects to find in the world's third-largest metropolis (only Tokyo and NYC are bigger). Mexico's best and worst ingredients are magi-mixed in this polluted and bustling megalopolis of music and noise, brown air and green parks, colonial palaces and skyscrapers, world-renowned museums and ever-spreading slums. Mexico has been progressing economically since the Mexican Civil War in 1939 when its economy was devastated. Today, tourism, industry and agriculture play a major role in the country’s economy. Mexico has seen the fastest economic development in Western Europe since the 1960’s. Tourism has played a major role since the 1960’s and in the last 40 years, tourism has been the fastest growing economic sector of the country’s GDP, helping to accelerate growth overall. Millions of visitors flock to Mexico and contribute almost $50 billion USD to Mexico’s economy each year. Agriculture contributes less than 5% of the nation’s GDP, which is high compared to other countries in Western Europe. Fishing is another important economic sector for Mexico. Industry contributes about 35% of Mexico’s GDP, but industry is still somewhat dependent on foreign investment. The most common products from this sector are motor vehicles, steel, textiles, chemicals and ships. Mexico is among the world's most open economies, but it is dependent on trade with the U. S. , which bought about 82% of its exports in 2007. Top U. S. xports to Mexico include electronic equipment, motor vehicle parts, and chemicals. Top Mexican exports to the U. S. include petro leum, cars, and electronic equipment. There is considerable intra-company trade. Trade disputes between the United States and Mexico are generally settled through direct negotiations between the two countries or via WTO or North American Free Trade Agreement (NAFTA) panels. The most significant areas of friction involve agricultural products such as livestock and sweeteners. To address the issues that affect these industries in a manner consistent with the principles of free trade, the United States and Mexico have established technical working groups. During the last three decades Mexico has grown with an annual average rate of 4%, even with the changes from an inward-looking developing economic strategy towards a more open economy with a far-reaching trade liberalization program. But the story at the sub-national level is different; these changes have modified the regional development strategies and consequently the growth paths of the 32 Mexican states. There is evidence of an uneven growth, greater disparities and important differences in welfare standards among regions. Socio-Cultural Factors Orientation: Mexicans make several cultural subdivisions within the nation. The most common one identifies northern, central, and south or south-eastern Mexico. The extensive and desertlike north was only sparsely populated until the middle of the twentieth century, except for some important cities such as Monterrey. It has traditionally housed only small indigenous populations and is generally regarded as a frontier culture. Densely populated central and western Mexico is the cradle of the nation. Highly developed Indian cultures populated this region in pre-Columbian times and it was also the heart of the colony of New Spain. Many prominent colonial cities are major urban and industrial centers today. Southern Mexico has a tropical or subtropical climate and some rain forest. It is characterized by a strong indigenous heritage and is also the poorest part of the country. Demography: The preliminary results of the 2000 population census calculated the total number of Mexicans as 97,361,711. In 1950, the total population amounted to approximately 25 million, with the figure reaching nearly 50 million in 1970. These numbers demonstrate the rapid rate of demographic growth that was so characteristic of Mexico during the second half of the twentieth century. The growth rate has slowed, but the population is still very young. The average life expectancy in 1999 was estimated at sixty-nine years for men and a little over seventy-five years for women; the infant mortality rate was almost twenty-five per one thousand. In the late twentieth century, emigration to the United States (mainly of the illegal variety) became a significant phenomenon. Linguistic Affiliation: Spoken by more than 95 percent of the population, Spanish is the official language of Mexico and was introduced through conquest and colonization. Mexican Spanish has its roots in the Spanish of Spain. In terms of grammar, syntax, and spelling there are no important differences between the two, but the pronunciation and sound are different. Certain words from the principal Indian language (Nahuatl) are incorporated into Mexican Spanish, especially in the domains of food and household. Some of these words have also been incorporated into other languages such as the English ‘chocolate' from the Nahuatl ‘chocolatl'. The national culture of Mexico boasts sixty-two indigenous languages. In 1995 at least 5. 5 million people spoke an indigenous language. The level of bilinguism, however, was high at 85 percent. Symbolism: The most important icon of Mexican national culture is the Virgin of Guadalupe, which illustrates the pervasive influence of Roman Catholicism in the national culture. She is viewed as the â€Å"mother† of all Mexicans. The dark-skinned Virgin is the Mexican version of the Virgin Mary and as such represents national identity as the product of the mixing of European and Meso-American religions and peoples. Her image was used in the struggle for independence against the Spanish. Mexicans have developed a particular sense of uniqueness, which is expressed in the popular saying como Mexico no hay dos (Mexico is second to none). This sense is also expressed in numerous elements of popular culture such as food and music. Ethnic Relations: Social policies aimed at the emancipation of Indian groups and the elimination of profound socioeconomic inequalities have been employed since the 1930s. Nevertheless, indigenous populations are among the poorest and most marginalized groups in Mexico. Prejudice among broad sectors of the population toward Indians persists. Elites in provincial towns in predominantly indigenous regions are often openly racist. This situation has strained ethnic relations and there has been a rise of indigenous movements in recent years that demand a new space in the national culture. Most significant has been the outbreak of armed indigenous rebellion in the state of Chiapas, where the Zapatista Army for National Liberation declared war on the government in January 1994. Food: Mexico possesses an extensive and sophisticated culinary culture, with a great variety of regional dishes. Three products constitute the heart of most Mexican dishes: corn, hot peppers (chiles), and beans, products that stem from pre-Columbian times. Corn is consumed in all possible forms: as a cooked or roasted corncob (elote), cooked grain of corn, porridge (atole), as wrapped and steamed dough with filling (tamal), but most importantly as a tortilla, a thin, round â€Å"pancake. Tortillas are made from corn dough and come in many sizes, although the traditional tortilla that accompanies most meals has a diameter of approximately six inches (15 centimeters). When tortillas are filled with meat or other ingredients they are called tacos or quesadillas, which are especially popular in cent ral Mexico. Much of the sophistication of Mexican cuisine comes from the use of more than one hundred different types of chiles, which range from the large and â€Å"sweet† chile ancho to the small and extremely hot chile habanero. Mexican Family Values: The family is at the centre of the social structure. Outside of the major cosmopolitan cities, families are still generally large. The extended family is as important as the nuclear family since it provides a sense of stability. Mexicans consider it their duty and responsibility to help family members. For example, the will help find employment or finance a house or other large purchase. Most Mexican families are extremely traditional, with the father as the head, the authority figure and the decision-maker. Mothers are greatly revered, but their role may be seen as secondary to that of their husband. Machismo: Machismo literally means ‘masculinity'. There are different outward behaviors to display machismo. For example, making remarks to women is a stereotypical sign of machismo and should not be seen as harassment. Mexican males generally believe that nothing must be allowed to tarnish their image as a man. Hierarchical Society: Mexican society and business are highly stratified and vertically structured. Mexicans emphasize hierarchical relationships. People respect authority and look to those above them for guidance and decision-making. Rank is important, and those above you in rank must always be treated with respect. This makes it important to know which person is in charge, and leads to an authoritarian approach to decision-making and problem- solving. Mexicans are very aware of how each individual fits into each hierarchy–be it family, friends or business. It would be disrespectful to break the chain of hierarchy. Technological Factors Most scientific research in Mexico is conducted in the public universities, mainly in the National Autonomous University and the Autonomous Metropolitan University, both in Mexico City. The National Polytechnic Institute, also in Mexico City, is the foremost research institute in engineering and technology. In recent years there has been government support for developing research centers outside the capital. There is also an extensive network of specialized autonomous research institutes that are dependent on state finances such as the National Institute of Astrophysics, Optics, and Electronics and the College of Mexico. Just over half of the almost $2 billion (U. S. ) of federal expenditures in science and technology in 1998 was channeled through the Ministry of Public Education and another 34 percent was channeled through the Ministry of Energy. The majority of the latter funds are spent on research into the exploitation of oil. Public policy concentrates on three areas: promotion of quality and quantity of scientific research, establishment of linkages between science and industry, and the promotion of technological innovation. The National Council of Science and Technology is the most important funding agency for the physical and social sciences. In 1998 it had a budget of $287 million (U. S. , with 47 percent allocated to individual postgraduate grants, 25 percent to scientific research and technological development, and 22 percent to the National System of Researchers (SNI), a program of financial incentives to productive academics. In 1998, more than sixty-five hundred researchers were in the SNI. Information on corporate funding of research and development is unavailable but is estimated to be very modest compared to Mexico's main trading partners. Mexico's future development will have to be progressively more based on the effective generation and utilization of knowledge, in order to meet economic, social and environmental challenges. The role of the scientific & technological communities in knowledge supply and in its effective integration in innovation systems cannot be overemphasized. If it wants to invest coherently in its own S&T assets, and assert its own intellectual and scientific capacities in the global knowledge society, Mexico must strive to go beyond the level of being an â€Å"economic province† of the much larger and US-dominated NAFTA. Overall investment levels in S&T remains low, although substantial investment in local human resources and infrastructure is required to ensure the absorption, adaptation and application of world-class technology. For instances, Mexico's investment on RTD is the lowest of the OECD 2 (0. 31% of GDP), compares unfavorably with 0. 38% for Turkey and represents only one-seventh of the OECD average. This figure can also be compared with those of China (0. 7%), India (0. 8%) or Brazil (at least 0. 8%). Human resource formation, a critical output of research projects, also remains disappointingly low. Mexico trains fewer Ph. D. per year than comparable countries, with 3 Ph. D. s per million inhabitants, compared to 5 in India, 6 in Brazil and 19 in South Korea. Moreover, there is a significant regional disparity in the allocation of scientific resources, with 75% of all doctoral degrees being awarded by institutions in the Mexico City area. 8. Problem Symptoms: From the above strategic analyses it could be interpreted that, Wal-Mart's current strong competitive position and its past rapid growth performance can't guarantee that the company will remain as the industry leader or maintain its strong business position in the future, since there are huge threats for the Walmart in the Mexico city. Competitors are now taking aggressive competitive moves and successfully imitating their strategies and diminishing the Wal-Mex advantage. 9. Current Strategies: Low Cost Provider Wal-Mart stores operate according to their ‘Everyday Low Price' philosophy. According their vision to contribute to improve the quality of life for Mexican families, they invest to be near and offer them the best products at Every Day Low Prices. Wal-Mart has emerged as the industry leader because it has been better at containing its costs which has allowed it to pass on the savings to its customers. It continues to improve upon its key business processes, managing them centrally and investing in them heavily for the long term payback. 10. Strategy Implementation The key features of Wal-Mart Mexico's approach to implementing the strategy is the approach to implementing the strategy by building solid working relationships with both suppliers and employees, being aware and taking notice of the most intricate details in store layouts and merchandising techniques, capitalizing on every cost saving opportunity, and creating a high performance spirit. This strategic formula is used to provide customers access to quality goods, to make these goods available when and where customers want them, to develop a cost structure that enables competitive pricing, and to build and maintain a reputation for absolute trustworthiness. Wal-Mart Mexico has been regarded as an industry leader in ‘testing, adapting, and applying a wide range of cutting-edge merchandising approaches Wal-Mart’s secret of having phenomenal track record in Mexico is that it has brought a set of superior management techniques and technologies. Press accounts have emphasized Wal-Mart’s low-price strategy, high-technology distribution network, and intense pressure on suppliers for discounts—â€Å"the same formula† as in the United States, Wal-Mart de Mexico also has connected with and replicated the U. S. Company’s huge, Automated distribution network. With NAFTA eliminating most trade barriers, Wal-Mex has direct links to U. S. -based distribution centers, but also has built twelve distribution centers within Mexico31. In addition to heightened efficiency, this multiplies Wal-Mex’s power as a purchaser, since Wal-Mart consolidates orders for all goods from outside the United States. Another contributor to Wal-Mex’s success is its use of a wide range of formats to appeal to varied classes of consumers, and particularly lower income consumers. Wal-Mart succeed to achieve economies of scale which reduces its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to inventory them. Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Cross docking gives the individual managers more control at the store level. Wal-Mart has been led from the top but run from the bottom, a strategy developed by Sam Walton and carried on by a small group of senior executives. . Although recent growth has led Wal-Mart to add more management layers, senior executives strive to maintain its unique culture. 11. Limits to the success story Mexican retailers have proven to be quick studies. All three of the main national autoservicio chains competing with Wal-Mart now offer some version of its â€Å"every day low prices† (EDLP) formula. Comercial Mexicana and Soriana now aggressively publicize price differences with Wal-Mart and Aurrera. In addition, some of the larger suppliers (especially soft drink and snack food manufacturers) have begun to print suggested prices on their packages, deterring retailers from charging more. Wal-Mart’s competitors insist that there is now no significant price difference, and many Mexican consumers seem to have drawn the same conclusion. Similarly, squeezing suppliers has become commonplace for large Mexican retailers. Executives from competing chains report that they have also begun to shift toward centralized, highly automated distribution and tracking systems, and to create detailed procedure manuals. The net result of Mexican chains’ emulation of Wal-Mart is that Wal-Mex’s share of sales among the top five Mexican retailers has remained steady for the last two years. Closer to home, Wal-Mart has struggled in northern Mexico, particularly the Monterrey area. Executives of another chain offered several analyses of Wal-Mart’s difficulties in the region. Soriana and the Texas-based HEB were already entrenched by the time Wal-Mart arrived. Wal-Mart made some early merchandising mistakes, opening no-frills Bodegas that had done well in central Mexico but left more sophisticated northern customers cold. Finally, as polarization between rich and poor increases in Mexico, Wal-Mart’s approach of selling to a broad middle faces structural limits. 12. Suggested Strategies ‘One little bad thing can wipe out lots of good things'. So every move in its business operation ought to be well thought-out and executed. Wal-Mart needs to address few areas in order to maintain or to capture an even stronger long term business position: Single-business strategy — Wal-Mart's success is mainly based on its concentration of a single-business strategy. This strategy has achieved enviable success over the last three decades without relying upon diversification to sustain its growth and competitive advantages. Given its current position in the industry, Wal-Mart may want to continue its single-business strategy and to push hard to maintain and increase market share. However, there is risk in this strategy, because concentration on a single-business strategy is similar to ‘putting all of a firm's eggs in one industry basket'. In other words, if the retail industry stagnates due to an economic downturn, Wal-Mart might have difficulty achieving past profit performance. Other than this some other suggested strategies could be: 1. Expanding into states where it had no stores; 2. Continuing to saturate its current markets with new stores; 3. Perfecting the Super center format to expand Wal-Mart's retailing reach into the grocery and supermarket arena 4. And last but not the least following the current low cost strategy through minimizing the operating cost and as well as the selling cost. 13. Conclusion The ever-changing market presents continuing challenges to retailers. First and foremost, retailers must recognize the strong implications of a ‘buyers' market' . Customers are being offered a wide choice of shopping experiences, but no one operation can capture them all. A closer look at Wal-Mart’s performance in Mexico indicates that it is neither invincible nor exceptionally exploitative. Imitation by competitors, income polarization, and economic hardship that steers consumers toward the informal sector will limit Wal-Mart de Mexico’s reach in the future. Hence, technology, demographics, consumer attitudes, and the advent of a global economy are all conspiring to rewrite the rules for success. Success in the next decade will depend upon the level of understanding retailers have about the new values, expectations, and needs of the customer. If Wal-Mart continues its customer-driven culture, it should remain a retail industrleader well into the next century. ———————– Ernesto Vega Chairman of the Board Eduardo Solorzano President and CEO Xavier del Rio Executive Vice Present, Real Estate Rafael Mature Executive Vice President and Chief Financial Officer Jose Angel Gallegos Executive Vice Present, Human Resources