Page 90 - STRATEGY Magazine

originates in the United States, in- vestors in Spain, Japan, Germany, and Canada also have solid stakes in the Mexican economy.
considerably. As a result, it has trade agreements with countries representing about 60 percent of global GDP and is the 12th-largest exporter in the world.
general, makes it very difficult to do business in those areas. “On the other hand,” he says, “we have regions like Bajío where investment opportunities abound.” The Mexican government and its people are working hard to overcome these matters. If the nation continues to foster a climate that facil-
Some of the optimism surrounding
Mexico’s economy may be tempered
by U.S. President Donald Trump’s
instigation of NAFTA renegotiations.
And Dr. Fernando Solís Soberón, the CEO of Seguros Banorte, points out that Mexico still has issues that inhibit investment, particularly in certain regions. Legal insecurity, and insecurity in
itates commerce and incentivizes foreign investment, it will re- main one of the most appealing economies for doing business in the Western Hemisphere.
Since the 1980s, Mexico has pur- sued aggressive trade liberalization policies. It has removed non-tariff barriers and reduced import duties
Change Is Welcome Here
CARLOS NAVARRO
Vice-President Strategy&
“Why should the U.S. be our main client?” asks Carlos Navarro, Vice-President of Strategy&, a global con- sulting arm of PwC. “Mexico is the country with the most free trade agreements in the world. We should diversify.” From the looks of it, many Mexican busi-
ness leaders share Navarro’s perspective. Multicultural and forward-thinking, the country’s new generation of strategists are ready to capitalize on the opportunities offered by the ever-changing global market. With a wealth of sophisticated firms, the nation’s future looks exciting.
RESILIENCE AMID CHANGE
Over the last 20 years, Mexico has signed many major trade deals, including NAFTA, and Mexico’s companies have be- gun competing in earnest with highly sophisticated multina- tional corporations. During the fierce struggle for economic
primacy that has ensued, local organizations have matured quickly, many of them adopting progressive business models and growing into innovators. Navarro credits this experience for producing an unusually high number of “resilient” firms, which he describes as those that are “quick to adjust ... once the CEO and top management have a direction, the organi- zation executes and pursues effectively.” In fact, Mexico’s proportion of resilient companies is significantly higher than that of the United States and other major competitors.
Today, Mexico’s business environment is undeniably ad- vanced, with perhaps no attitude more prevalent than a com- mitment to change. Even consultants find themselves playing catch-up to companies who expect incredibly fast turnaround as they capitalize on the emerging opportunities offered by free trade. As millennials enter the mix, this emphasis on the new will only increase. The nation’s workforce is becoming more collaborative, more agile, and more well rounded, a trend that is destined to have profound implications for small and large companies alike.
CHASING THE HORIZON
Over the next few years, more change is coming to Mexico. While recent decades have seen business focus on exports, mainly to the nation’s northern neighbor, a growing middle class signifies untapped potential in the domestic market. Na- varro thinks of Mexico as a developed economy, with “CEOs that are thinking ten years ahead,” both to increased domes- tic activity and to customer bases beyond North America. While change may be threatening to some, these new adjust- ments “might be the best thing that could happen to Mexico, if you play it right.”
“Mexicans are open, they like to compete. They’re also open to bringing ideas, bringing partners, thinking outside of their current paradigms.”
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