Business Performance, Corporate Structure and Competitiveness in Mexico

Abstract

This paper aims to analyze the structure, characteristics and business performance in the 32 States of Mexico, to determine their levels of competitiveness. It follows a previous study by Unger, Flores and Ibarra (Productividad y capital humano: fuentes complementarias de la competitividad de los estados mexicanos, 2013), in which a model is applied to measure business competitiveness. The variables that are taken are the salary and the value added in the model to measure competitiveness. The research results confirm the hypothesis that the competitiveness of States can be determined by the business structure, productivity and therefore higher wage advantage.

Key Concepts and Words

Business performance

The accomplishment of a given business strategic goals measured against preset known analytic processes, standards and indexes supported by technology to involve data analysis and consolidation from various sources to determine best practices for better reaching the goals. Business performance entails reviewing aggregate available information and data on the business as a whole to determine the firm’s position, how the business can better reach its goals by the alignment of strategic and operational objectives and the business’ set of operations, functions and activities.

Competitiveness

The set of institutions, policies and factors that determine the level of productivity of a firm or country that enable the ability to meet quality life standards at competitive prices while providing adequate returns on resources consumed. For this paper, competitiveness is associated with profitability, productivity, costs; value added, market share, exports, technological innovations, among others (McFetridge 1995).

Corporate structure

The overall makeup of an organization or firm as a unit formed by the way it is organized as a system and interrelated between each other organizational sub-units, divisions, departments, etc. depending of the level of complexity to share tasks, responsibilities, work processes, etc. that contribute to the accomplishment of the common goals of the firm.

México

A country, nation and state located in the Western Hemisphere, south of the United States Border and North of Guatemala Border, in a geographic area covered by the south of North America and North of Central America. It has extensive coastlines on the Gulf of Mexico and the Pacific Ocean. The estimated population is about 127,000,000 Mexicans. Spanish is the main and official language.

MSMEs

It is an acronymic that stands for Micro, small and medium enterprises. What defines if an enterprise is Micro, Small and Medium are number of employees, the investment in plant and machinery, excluding land and buildings for those engaged in manufacturing or production, processing or preservation of goods and on the investment in equipment for enterprises engaged in providing or rendering of services.