Expansion of an Irish College IBAT into Mexico Essay

Expansion of an Irish College IBAT into Mexico - Essay Example Strategic and operational management are linked with each other. Strategic management aims to provide direction, guidance and boundaries of operational management (Steiner, 1997, p.4). Therefore Strategic planning is the process of developing and maintaining a strategic fit in between the organizations capabilities and goals along with the changing marketing opportunities (Kotler, 2008, p.34). The project report is about the expansion of an Irish Collage ‘IBAT’ in Mexico. Thus for this reason PESTEL analysis is carried out to understand the macro environment of Mexico, along with an analysis is conducted upon the education sector of Mexico. When a brand move into a new place it has to face cultural difference which needs to be tackle properly and for which human resource team needs to work effectively so that the business and the employees can adapt to the new culture and environment. Thus IBAT can take the opportunity of the growing education sector of Mexico and add to its advantage. Macro Environment The Macro environment consists of framework, PESTEL. The PESTEL framework aims to categories the environmental influences into six main types which include political, economical factors, social, technological factors, environmental and legal factors. It is essential for mangers to understand the key drivers of change and also the impact of these factors on market, industries and also on individual organization (Johnson, 2008, p.65). Political factors: The basis of Mexican politics lies in the context of modernizing the elements. With the above context certain ongoing trends have appeared in the recent years such as modernization of politics and anchoring of democracy. Regional politics is widely dominated by the local entrenched strongmen who often tend to represent families who have been powerful during the colonial times (Klepak, 2008, p.3). But the country faces some political risk which is based on many possibilities. The first and foremost risk arises from terrorism and drug violence, corruption, congressional Stalemate and Guerrilla activity and sabotage. Therefore, the above factors may put an immense risk on the political condition of Mexico (Schtulmann, 2010). Economical factors: Mexico is ranked as an upper middle income country by the World Bank. In Mexico poverty is widespread, about 44% of the Mexican population lives below the poverty line. The economy of Mexico grew by 5% in 2010 after a recession experienced by the Mexican in 2009 during the phase of global economic crisis. The country’s tax revenue as a percentage of GDP was about 17.5% during the recession which was recorded the lowest among the OECD members. Mexico is among the popular tourist destinations across the globe. It has attracted about 21.3 million tourists in 2010 and has become the tenth most popular tourist destination. Thus tourism has contributed to the economy of the country and has recorded about $11.8billion (US State Department, 20 11). Social Factors: Mexico is one of the most populous Spanish countries in the world. About 76% of the Mexican people live in the urban area. The population of Mexico City is about 22million making it one of the largest concentration of population in Western Hemisphere. Mexico has been able to made significant changes in education sector and the literacy rates over the past few decade have decreased drastically. According to a report of World Bank, enrollment at the primary level is universal and more amounts of children are completing their primary education. Technological Factors: The future of Mexican population depends largely on the utilization of knowledge so that the country is able to meet the economic,