Mexico City Water Shortage

Mexico City Water Shortage Description

To maximize their effectiveness, color cases should be printed in color.In this case, a property company, a water privatizer, and municipal engineers explore the causes of and solutions to a severe water shortage in Mexico City, a great global capital. The protagonist is a real estate investor doing due diligence on the magnitude of the crisis, the impact on the firm's operations, and the likelihood of resolution. Due diligence includes interviews with city water officials and global-scale water privatizers. This case is an excellent introduction to city scale infrastructure issues on a global level. A related case, "Water Shortage and Property Investing in Mexico City," HBS No. 210-085, contains more real estate finance and less water infrastructure finance material than this case does.

Case Description Mexico City Water Shortage

Strategic Managment Tools Used in Case Study Analysis of Mexico City Water Shortage

STEP 1. Problem Identification in Mexico City Water Shortage case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Mexico City Water Shortage case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Mexico City Water Shortage case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Mexico City Water Shortage case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Mexico City Water Shortage case study

STEP 6. Recommendations Mexico City Water Shortage case study

STEP 7. Basis of Recommendations for Mexico City Water Shortage case study

Case Analysis of Mexico City Water Shortage

Mexico City Water Shortage is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Mexico City Water Shortage is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Mexico City Water Shortage case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Mexico City Water Shortage will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Mexico City Water Shortage case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Mexico City Water Shortage, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Mexico City Water Shortage case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Mexico City Water Shortage case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Mexico City Water Shortage

Step 1 – Problem Identification of Mexico City Water Shortage - Harvard Business School Case Study

The first step to solve HBR Mexico City Water Shortage case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Water City is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Water City, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Mexico City Water Shortage.

The external environment analysis of Mexico City Water Shortage will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Mexico City Water Shortage case study. PESTEL analysis of " Mexico City Water Shortage" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Mexico City Water Shortage macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Mexico City Water Shortage

To do comprehensive PESTEL analysis of case study – Mexico City Water Shortage , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Mexico City Water Shortage

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Mexico City Water Shortage

Government policies have significant impact on the business environment of any country. The firm in “ Mexico City Water Shortage ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Water City is operating, firms are required to store customer data within the premises of the country. Water City needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Mexico City Water Shortage has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Water City in case study Mexico City Water Shortage" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Water City in case study “ Mexico City Water Shortage ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Water City in case study “ Mexico City Water Shortage ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Mexico City Water Shortage

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Mexico City Water Shortage ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Water City can compete against other competitors.

Government Scheme & Subsidies Impact on Mexico City Water Shortage

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Mexico City Water Shortage case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Mexico City Water Shortage

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Water City needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Mexico City Water Shortage

Social Factors that Impact Mexico City Water Shortage

Technological Factors that Impact Mexico City Water Shortage

Environmental Factors that Impact Mexico City Water Shortage

Legal Factors that Impact Mexico City Water Shortage

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Mexico City Water Shortage case study. PESTEL analysis of " Mexico City Water Shortage" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Mexico City Water Shortage case study solution