Therefore this is another area that posses challenge

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Therefore, this is another area that posses challenge and hence ought to be tackled serious through thorough research to make up with the best strategy (Wächter, 2003). Effect on shareholders Moving of the car firm from USA to Mexico will greatly affect the shareholders in a number of ways. This may ultimately lead to the making of unplanned decisions by the shareholders. Some of the shareholders who may not be willing to relocate to Mexico or observe the operations of the business from the USA may decide to sell their shares. This may also be influenced by other factors such as the consideration of profit assurance of the firm in Mexico. Another number of shareholders may decide to relocate to Mexico or higher experts t o follow the business on their behalf. Moreover, some of them may be forced to sit back home and follow the operation from home. Therefore, this step will generally affect all the shareholders. Furthermore, these plant owners may be forced to contribute to the establishment of the new firm
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in Mexico, hence eating into their finances. The shareholders are also prone to disagree on this issue of movement. Some will support the move, while the other will be against it. Strategic implications for moving the firm to Mexico Moving to Mexico would be beneficial if only the car plant dedicates itself in intensive and extensive marketing in order to win the trust and the respect of the Mexicans and the countries that surround then. This would then lead to purchase of its brands of cars. Moreover, it can be concluded that form vigorous research and learning of Mexican culture, the business can do well by producing brands preferred on that side of the globe (Dessler & Philip, 2008). In consideration to the taxation, business laws, and incentives in Mexico, it can be said that the plant will do well and in the new future, it can have a strong foundation. Moreover, as time goes by, the locals can be trained and hired cheaply in Mexico than in the USA and hence this would increase the profitability of the firm in the end. The competition from the already established firms may also be a problem to the newly established firm and hence, there is need to put up competitive strategies in order to do well in the new environment. Strategic implications against the movement of the firm Since the firm is already established and it has a strong foundation, it would be strategic to let it stay as opposed to taking it to a completely new environment with a hundred percent certainty of getting grounds and customers (Brigham, et al 2010). Instead of moving the firm, it is rather safe to invest in marketing and differentiation to improve competition at home, where at least the company is assured of customers. Moreover, improvement in communication with competitors and customers can lead to flow of vital information that it can utilize in its strategy
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to gain a competitive advantage in its current market and country. Having a plan of the future and anticipating loss or gain will also help the business to move on in the industry and do well while at home.
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