May 4th, 2018

International Environments and

Business Operations

Project part 6

INDEX
COVER PAGE…………………………………………..............1

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INDEX……………………………………………………………..2

BUSINESS PERSONA…………………………………………..3

INFORMATION ABOUT CLIENT……………………………….4

ANALYSIS OF THE ENVIRONMENT FOR CLIENT………….5

BUSINESS STRATEGY PRESENTATION FOR CLIENT……6

In the eighth semester I went to work at the AC hotel of the international hotel chain
Marriott in the administrative area, thanks to my good performance, when I
graduated from the career the same Marriott chain offered me a job opportunity at
the Marriott Cancun Resort hotel in which I spent five years in the area of purchases,
gastronomy and finally events.

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 About client #1

NAME OF THE COMPANY: Premium Incoming

MAIN CONTACT: http://es.premiumincoming.com/
Fax. +34 915 424 672
BUSINESS NAME: Company
BUSINESS TYPE: Private company
COUNTRY WHERE IT IS REGISTERED AND HEADQUARTERED: Madrid, Spain
TELEPHONE NUMBER: +34 915 487 465
E-MAIL: info@premiumincoming.com
POSTAL ADRESS: C/ San Sotero, 11 1° izq.- 28037 Madrid, Spain
COMPANY HISTORY: PREMIUM INCOMING is a European Destination
Management Company and a receptive tour operator with more than 20 years of
experience. Founded in 1994, their network of their own offices in Madrid,
Barcelona, Berlin, Budapest, London, Paris, Prague and Rome. They offer integral
solutions for vacation and corporate clients, whether individuals or groups of any
size, with high quality services, a flexible approach and highly competitive
conditions.

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With more than 20 years of experience in the travel and events industry delivering
more than 1,300 successful business and leisure annual programs. Premium
Incoming has become a leader in the receptive tourism market in Europe (DMC)
with local prescience in Madrid, Budapest, Prague, London, Rome, Paris,
Barcelona and Berlin; thanks to the trust and loyalty of their clients and the
professional and committed work of their team.
WHAY THEY DO: In Premium Incoming, they offer integral solutions for holiday
and corporate clients, for any type of trip and group size, with high quality services
and highly competitive conditions.
Thy are experts in the organization of customized trips, adapting their services to
the specific needs of each of their clients, in a personalized way guaranteeing a
PREMIUM service.
Their comprehensive receptive service includes advice on the choice of
destination, creation of creative and unique programs and negotiation with local
suppliers to achieve the best conditions, logistics organization and program
development with services such as; accommodation, excursions, transfers,
accompaniment ...
MISSION: “To assist our clients to offer the best solutions with exceptional service
that cover their needs for corporate travel, leisure, incentives and events.”
VISSION: “To be a group of internationally leading companies in the industry of
receptive tourism and events in Europe, through the improvement of our social and
cultural values in our operation throughout all our geographical locations.”
VALUES: Respect, honesty, leadership, loyalty, commitment, quality, growth,
social responsibility, responsibility and team work.
PRODUCTS: Organization of conventions and congresses, incentive trips,
destination management and thematic trips.

Analysis of the environment for client

The government is divided into three powers that are:

-Executive: (President and Governors) Who administers public resources.

-Legislative: (Congress of the union and state congresses) In charge of making laws
-Judicial: Responsible for compliance with laws

It is a democratic country, because it allows to organize citizens to participate

politically and in decision-making, that means, democracy is the power of citizens.

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The Mexican economic system, neoliberalism, considers the small, almost null
intervention of the state in the economy because the market is the best instrument
to allocate efficiently the resources of society.

Talking about direct foreign investments; Mexico is one of the emerging countries
most open to foreign direct investment. It occupies the fifteenth place as the most
important recipient of FDI in the world. Reached 33 billion USD in 2015, these
decreased to 26 billion USD in 2016 and increased in 2017 with 29 thousand 695
million USD.

Mexicans are characterized by being very friendly, smiling, friendly and welcoming
and when doing business with a Mexican businessman, personal relationships are
very important.

Mexico is a mostly urban country, around 85% of its population lives in large cities.
One of the characteristics of the natural wealth of Mexico is its gastronomy that was
declared intangible heritage of humanity by UNESCO. Religion has an important
presence in national and regional festivities. We Mexicans love the party, the music
and enjoy life, although we are also serious and hardworking people. Thanks to the
52 indigenous peoples, different languages are spoken in Mexico, of which Nahuatl
has the largest number of speakers.

The Mexican prefers to be told to make him take risks, preferring to receive orders.
They are very respectful with the organizational structure, they are not used to
working as a team, they are very individualistic. The Mexican is characterized by his
unpunctuality and by his lack of concern in the face of immediate demands. In
addition, more than half of Mexican workers are dissatisfied with their employment.
(AltoNivel, 2014)

The minimum wage in Mexico is $ 88.36 pesos (Conasami, 2018) Mexicans work an
average of 2, 255 hours per year, which translates into 43 weekly hours. (OECD,
2018) 54% of Mexicans experience bad weather in their company (Simetrical, 2017)

Mexico currently has 12 free trade agreements with 46 countries. Among these
treaties are:

NAFTA: This is with Canada and the United States. Its objective is to create a free
trade zone, eliminate restrictions on foreign trade and direct foreign investment.

Mexico- European Union: Some issues covered by this treaty are, customs duties
on both imports and exports, safeguard and surveillance measures, cooperation and
customs value and restrictions due to balance of payments difficulties, etc.

Business strategy presentation for client

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THE RELATIONSHIP BETWEEN MEXICAN DEMOGRAPHICS AND
PURCHASING POWER. IS IT FAVORABLE FOR THEM OR THEIR PRODUCTS?

Mexico has around 127,540,423 inhabitants, it is one of the most populated

countries in the world. Mexico's current salary does not even cover 100% of the
basic food basket, it reaches 80% barely and this leads to not covering even the
basic needs. During the last 30 years the purchasing power has dropped by 80%.
Before with 4 hours and 53 minutes you could buy the basic basket, now it takes
24 hours and a half.

HOW THE MEXICAN POLITICAL SYSTEM CAN HELP OR UNDERMINE THEIR

ENDEAVOR.

In international transparency of 176 and 123. Political corruption is already part of

the same political culture that all parties already share and it seems that there is
already a habit of living with it. And of course the Mexican political system can help
as long as you give them a part; to help you remove barriers, get permits, etc. And
of course, if you do not bribe it or you do not give it what they ask, they simply
make you the slowest procedures, they put barriers, etc. A phrase that sums up
this very well, says: Help me to help you, this means, give me money and I help
you.

HOW IT WILL PLAY OUT WITHIN THE MEXICAN ECONOMIC SYSTEM, IN

SPECIFIC THE ECONOMICS SURROUNDING THAT SPECIFIC INDUSTRY.

In Mexico, the meetings industry generates more than 25 billion dollars in direct
spending by holding more than 266,000 events that bring together more than 29.3
million people. While the economic benefit to Mexico is 2.4 billion dollars, that is,
1.5% of GDP. According to data from the Tourism Promotion Council of Mexico
(TPCM) The International Association of Congresses and Conventions (IACC)
recognizes that the tourism industry of meetings is an important pillar in the
Mexican economy.

WHAT TO EXPECT ABOUT MEXICAN HIRING PRACTICES, EMPLOYMENT

BENEFITS, MINIMUM WAGE AND THE ROLE OF LABOR UNIONS.

The main types of contracts in force in Mexico are; contract for work or specific
time, for an indefinite period, trial period, initial training and working relationship per
season.

The benefits of law for workers are:

-Social insurance: be incorporated into the IMSS to receive medical care without
cost.
- Holidays: upon completing one year of work, minimum 6 days of vacation with
pay.
-Prima vacation: receive at least 25% of the salaries corresponding to the vacation
days that you touch.
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Aguinaldo: 15 days of salary if you have one year old or proportional if you have
not met.

The role of unions is to improve the living conditions of workers, ensure compliance
with labor and social security laws, be part of lawsuits and claims, improve the
level of employment and placement of workers, improve prevention systems of
occupational risks, etc. (Gestión.Org, 2016)

RELEVANT GOVERNMENT REGULATIONS TO THEIR FAVOR.

-Actively participate in the institutional programs of innovation, transparency,

quality, effectiveness and practical organizations.

-Participate actively in institutional programs to combat corruption and impunity, as

well as promote organizational values.

-To carry out administrative procedures for the contracting of services or

acquisition of essential goods for the execution of the work programs of its
administrative unit and to elaborate the justification of the proposals.