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International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship
International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship
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International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship

I.T.E.S.M.

  Professor D.J. Bava
Presented by Héctor Mercado Rdz.

 

 

HISTORY AND PRODUCT

• Mexico is the origin center of avocado (Persea Americana Mill), the oldest evidence was founded in a cave located in Coxcatlán, Puebla, Mexico that date 10.000 years B C. Whereas in the Florentino Codice three avocado types are mentioned. At the colonial time the Spaniards introduced the avocado to the other America's and Europe's countries.

Mexico is the world's largest avocado producer, the production was over 1,148,547 tons in 2003 harvested on 124, 823 hectares of bearing trees.

México 60%
Indonesia 10%
United States 8%
Brazil 5%
Israel 4%
South Africa 4%
Otros 9%

• Mexico produces more than 60 percent of the avocado world production; however, it only exports 5% of its domestic production , currently, demand for Mexican fresh avocados in the Europe market is limited by competition from South Africa and Israel, but now the Mexican avocado growers have a new access to the European Union Market.

State Avocado Producers

Michoacan 85%

Nayarit 3%

Morelos 2%

Estado de México 2%

WHY SPAIN?

CHOOSE A COUNTRY

After an analysis of different countries, we select SPAIN because it is the entrance to Europe and it is the nearest country of the European Community from México. México and Spain have a lot of things in common.

Area: Total: 504,782 sq km
Water: 5,240 sq km
Land: 499,542 sq km

POPULATION

• Total: 40,217,413 (July 2003 est.)

• Age structure: 0-14 years: 14.4% (male 2,985,705; female 2,808,791)
15-64 years: 68% (male 13,721,053; female 13,626,121)
65 years and over: 17.6% (male 2,962,646; female 4,113,097) (2003 est.)

• Median Age: Total: 38.7 years
Male: 37.4 years
Female: 40.1 years (2002)

MAIN CITIES OF SPAIN

• Madrid, Barcelona, Sevilla, Valencia, Salamanca, Valladolid, León, Bilbao, Zaragoza, Córdoba.

• 19 autonomous communities; Andalucia, Aragon, Asturias, Balearic Islands, Ceuta, Canary Islands, Cantabria, Castilla-La Mancha, Castilla y Leon, Cataluna, Communidad Valencian, Extremadura, Galicia, La Rioja, Madrid, Melilla, Murcia, Navarra, Basque Country.

• Note: three small Spanish possessions are located off the coast of Morocco: Islas Chafarinas, Penon de Alhucemas, and Penon de Velez de la Gomera; Ceuta and Melilla gained limited autonomous status in 1994

PORTS AND AIRPORTS

• Principal Ports: Aviles, Barcelona, Bilbao, Cádiz, Cartagena, Castellón de la Plana, Ceuta, Huelva, La Coruña , Las Palmas (Canary Islands), Malaga, Melilla, Pasajes, Gijón, Santa Cruz de Tenerife (Canary Islands), Santander, Tarragona, Valencia, Vigo.

• Airports: Spain has more than 152 Airports.

• Languages: Castilian Spanish 74%. Catalan 17%. Galician 7%. Basque 2%
Note: Castilian is the official language nationwide; the other languages are official regionally.

• Religion: Roman Catholic 94%, other 6%

CURRENCY

EURO (EUR)
Note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by the financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions with the member countries.

ECONOMIC OVERVIEW

• I will talk about the recent history of economics, Aznar administration, because José Luis Rodríguez Zapatero has 15 days as President of Spain.

• Its center-right government successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999.

• The AZNAR administration has continued to advocate liberalization, privatization, and deregulation of the economy and has introduced some tax reforms to that end.

• Unemployment has been steadily falling under the AZNAR administration but remains high at 11.7%.

• The government intends to make further progress in changing labor laws and reforming pension schemes, which are key to the sustainability of both Spain's internal economic advances and its competitiveness in a single currency area.

• Growth of 2.4% in 2003 was satisfactory given the background of a faltering European economy.

• Adjusting to the monetary and other economic policies of an integrated Europe - and reducing unemployment - will pose challenges to Spain over the next few years.

DISTRIBUTION CHANNELS

WHY LA CORUÑA PORT?

• We select the Coruña port because it is one of the nearest port from México, and it has one of the better infrastructure in Spain.

• La Coruña's port is one of the city's economic centers.

• With more than 6 kms of quays (67% between 4 and 12 meters deep, and 27% more than 12 meters deep) and almost 1,000,000 square meters —counting both sea and land surface—,

• It is considered one of the best equipped ports in Spain as well as a crucial point of inflexion between the Atlantic and the Bay of Biscay.

LA CORUÑA PORT

• Over 12 million tons of merchandise passed through this port in 2000 .

• Port Authorities and the City Council promote its activity with continuous investments . Recently, 7,21 million euros were invested in optimizing the system of marine signals, the lighting system and the construction of new berths, in addition to the modernization of the fish market, the arrival of optic fibre and the construction of the exterior port, at the border with Arteixo, with direct access to the metropolitan area's motorway system.

BY LAND

• By land, the North-South network of motorways connect it with the rest of Spain and Portugal, while a number of high-speed ring-roads surrounding the city's perimeter and first industrial zone, complete the local system of road communications.

• From La Coruña to Madrid 600 km

• From La Coruña to Portugal Border less than 300 km

• From La Coruña to France Border less than 1000 km

• From La Coruña to Barcelona 1100 km

BY TRAIN

• San Cristóbal Railway Station, refurbished in 1991, is the focus for the city's railway traffic.

• Three long-distance lines depart from La Coruña: to Madrid with two daily services.

• La Coruña: to Barcelona with one daily service.

• La Coruña: to Bilbao-Irún with one daily service.

• To these should be added the Santiago, Monforte, Ferrol and Vigo regional services .

BY AIRPLANE

• Modern, easily accessible and located in the city outskirts, La Coruña's airport provides fluid communication with the main cities of the Iberian Peninsula.

• A recent increase in air traffic —twice the national average— has made necessary a progressive modernization of its installations which is now underway.

• Santiago Airport (only 30 minutes distance by motorway) supplements La Coruña's air links.

• From Mexico to La Coruña by Boat approximately 32 days.

• We need to pay a Documentation Fee and are 50 USD.

• Fumigation Fee and are 100 USD.

• Each frozen container of 40 feet with 22,000 kg approximately 450 USD.

• A total of 600 USD per container.

AVOCADO'S PRICES

ADVANTAGES OF MEXICAN AVOCADO

• The Mexican avocado it is the best avocado around the world.

• México has an advantage over their competitors, because it has a TLCUE with the European Community .

• One of advantages is that Mexico can introduce 30,000 tons of avocados free of taxes.

• Mexico has an advantage over their competitors, because it has the largest production of avocados around the world, and can produce avocados with a competitive price in the European Community .

• Government Support.

CONCLUSIONS & RECOMENDATIONS

• Contract a logistics group for the distribution of avocados in Spain and the rest of Europe.

• Mexico should increase its exports to Spain and the rest of Europe, because only exports 1 percent of its domestic production.

• Q & A.


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International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship
International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship International Management Consulting Services / Center for Transnational Leadership and Entrepreneurship