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Operations Management
Having effective IT systems to underpin warehouse management is important for Acme entering the Mexican market. IT systems provide the support needed to maintain inventory levels, to track sales, and to ensure that the stores are able to compete effectively, all of which are critical to organizational success (Melville, Kraemer & Gurbaxani, 2004). The IT system that runs the Mexican operation will be a mirror of the American system. This will help the company to maintain the same systems throughout, as it expands into both Mexico and Canada. The IT manager will work in English in order to maintain this systemic simplicity.
The IT system will help with ordering, as there will need to be longer lead times for the warehouse function in the Mexico operation, as it takes longer to get goods across the border and down to Mexico City, where the warehouse will be headquartered. The company will have even longer lead times if it sets up a second warehouse somewhere on the Yucatan Peninsula. Initial expansion to Guadalajara would be served from Mexico City until enough stores have been built. The IT system will track inventory in the warehouse as it enters and exits.
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This should be explored as a means of ensuring high quality of work, while having relatively low costs. Fewer workers are required, and goods can be moved twenty-four hours per day, something that is essential given how bad traffic is in Mexico City during the day -- moving goods at night can save time.
The final point on warehouse management is that the company will need to open the system to its Mexican joint venture partners. This means that there might be some more sensitive aspects to the system at the warehousing level that need to be protected. Security for the IT system should be augmented at the Mexican operation to ensure that the local partner only has access to the parts of the system that pertain to the Mexican operation. This is why the system will need to be a duplicate of the U.S. system, but the U.S. system itself will only be accessible through an interface.
Marketing Management
There are some significant differences in marketing between Mexico and the U.S., and not just language. The product mix will be different, but so will the marketing message. The local partner will be…
References
Herbig, P. & Genestre, A. (1996). An examination of the cross-cultural differences in service quality: The example of Mexico and the U.S.A. Journal of Consumer Marketing. Vol. 13 (3) 43-53.
Melville, N., Kraemer, K. & Gurbaxani, V. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly. Retrieved March 2, 2016 from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.117.4092&rep=rep1&type=pdf&embedded=true
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