Las Ferreterias de Mexico

Good Essays
LU Ferreter1.a da Mllxico. S.A. da C.V.

We had been opt-'fating our company like a family, but maybe we're too big to opemte Ihat way. I think some of our people have gotten lazy, and ourperfonn· anee has suffered. That is why r asked for Ihe design of a new ineentive .compensation plan. We need !O be more compelitive to survive. I Want OUf people to focus on what they can do to imp. ove .company r perfollllanee, and if we're successful, I am quitt willit;lg to share a good proportion of the pro.ceeds of our success.
FUfUlndo Gonzalez, Chairman and ClW. Las Ferreterlas de Mex;co, SA. de C.v.

,

THECOMPANY
Las Ferreterfas de Mexico, S.A. de C.V. (FeITeterlas) was the second largest retailer of lumber, building materials, aud home improvement products and equipment in Mexico. Ferreterfas operated 82 stores in Mexico City and throughout most of the northern regions of Mexico. Each of Ferret.er{as' stores offered between 10.000 to 20,000 stock keeping units (SKUs) in a retail sales area, an outside lumberyard area, and a garden center. The total store areas ranged from 10,000 to 35,000 square feet. Ferreterfas was founded in 1902 in a suburb of Mexico City by Femando Gonzalez' grandfather. Over tbe years, the company added more locations. It was listed on the Mexican Stock Exchange in 1983. In 2002. Ferre/erlas had sates of 2,210 mil" Iion pesos and profits of almost 120 million pesos (see summary financial statements in Exhibits 1 and 2),1

_._..
• At the time of the case, mately 1)S$O.IO.
O/It'

Mexlcan peso was worth

appro~i·

Starting in the late 1980s, Femando Gonzales launched a major company expansion to take advantage of the growth in the Mexican economy. He thought that his company needed tO emulate the methods of the large American homebuilding tetailers, such as Horne Depot and Lowe's, in order 10 survive. Thus, improving market share and improving operating efficiencies became Ferreterfas' strategie priorities. Tbe store manageJS

You May Also Find These Documents Helpful

  • Better Essays

    Las Ferreterías De México Comments Who Makes the recurring Key Decisions in Las Ferreterias? Mr. Gonzalez makes some of the global decisions but the store managers make a lot of the recurring key decisions. Person(s) Responsible Key Recurring Decisions for Making the Decision Order right items in the right quantities S Staffing with right numbers of good people S Pricing S Granting credit S (with corporate check on large decisions) Selling S, R (large contractors…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Las Ferreterias de Mexico

    • 1646 Words
    • 7 Pages

    Introduction To find out whether or not Mr. Gonzales should implement the new compensation plan, we will initiate with a valuation of the proposed bonus plan that he is considering. This evaluation will include an analysis of the key decisions and the persons responsible for making the decision as well as a discussion of the proposed plan. Upon this analysis we will conclude whether it is a good idea to implement it and state our suggestions for a modification of the plan. Valuation of the proposed…

    • 1646 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Las Ferreterias de Mexico

    • 2187 Words
    • 9 Pages

    Good management- Most of the Employees value rewards of different nature and they are therefore motivated by positive rewards. Employees are known to put less effort to those activities or tasks that are not well rewarded and hence in order to motivate them in their work, a good scheme for rewarding them is important. These rewards are different in nature and include compensation, awards, off duties and many others. Mr. Gonzalez came up with the idea of implementing compensation plan as a way of…

    • 2187 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Las Ferreterias

    • 385 Words
    • 2 Pages

    Victoria University BAO3312 Final Exam Semester 2 2010 Exam Case The case study for the Final Exam is Las Ferreterias de Mexico. A copy of the case is available in WebCT. Exam Conditions Time: 15 minutes reading time +2.5 hours; Closed books and notes. You will be given a clean copy of the case in the examination. There are a couple of questions that require some calculations; therefore, a calculator will be allowed in the exam. These questions make up less than 10% of the Exam. Exam Questions,…

    • 385 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    de la hoya

    • 669 Words
    • 3 Pages

    were all boxer. 2. How he started a De La Hoya's parents moved to the United States from Mexico before he was born. b. . He started boxing at the age of 6 c. At the of age 15, De La Hoya won the national Junior Olympic 119-pound title. B. Professional Career 1. With the 1992 Summer Olympics in Barcelona, De La Hoya defeated Marco Rudolph of Germany to win gold and become the only U.S…

    • 669 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Sony de Mexico

    • 862 Words
    • 3 Pages

    Case Study #3 Sony de Mexico It was a hot, dry afternoon in Mexico's northern Sonora Desert and Rey was in a sour mood. Rey Uribe, the nor¬mally energetic and optimistic president of Sony de Mexico, had just received the news that Sony's Mexican operations were to be shut down in a cost-cutting move. Corporate had decided that to remain competi¬tive, capacity should be shifted to Southeast Asia, where labor costs were a fraction of Mexico's fully bur¬dened hourly labor rates of $3.50. Of course…

    • 862 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Walmart de Mexico

    • 1591 Words
    • 7 Pages

    Wal-Mart de Mexico Comercial Mexicana S.A. (Comerci), one of Mexico's largest retail chains, was faced with a serious dilemma. Since Wal-Mart's aggressive entry into the Mexican retail market, Comerci has found it increasingly difficult to remain competitive. Wal-Mart's strong operating presence and low prices since NAFTA's lifting of tariffs have put pressure on Comerci, and now management must decide if it can improve Comerci's competitive position by remaining independent or by merging with…

    • 1591 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    De La Hoya

    • 371 Words
    • 2 Pages

    Pound-for-pound champion Floyd Mayweather Jr. recently challenged the retired ten-time six-division champion and now boxing promoter Oscar De La Hoya to be the antagonist of his final fight before retirement in September, as per Inquisitr. This challenge came after De La Hoya said in a radio interview a week ago that he was thinking about coming back to the ring everyday as he believes he is still fit enough to fight, according to an article in Fight Saga. The article even mentioned something about…

    • 371 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    De Las Casas

    • 291 Words
    • 2 Pages

    In Bartolome De Las Casas’s “from The Very Brief Relation of the Devastation of the Indies” a lot of descriptive verbiage is utilized to paint a distinct picture of good vs. evil in an unjust world. Referencing the Spaniards as Christians is done with a great deal of anger, and sarcasm. These Spaniards performed many acts of evil as they brutally tortured, killed, and enslaved the Native American peoples. According to De Las Casas “they attacked the towns and spared neither the children nor the…

    • 291 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    La Casa De Las Boats

    • 1763 Words
    • 5 Pages

    Zhe Cui Prof. Nicholas MKTG-342 Case Analysis Feb 27, 2015 La Casa de Las Botas 1. Summary La Casa de Las Botas is a small company which has luxurious retail space in downtown Buenos Aires and a little workshop located about 10km to the west. El Señor Jorge Da Silva Villagrán, the company founder and owner, used to work as an apprentice for Pierri Company for fifteen years. When Mr. Pierri was retiring along with some of his employees, Jorge decided to buy the business from him in 1989, since he…

    • 1763 Words
    • 5 Pages
    Powerful Essays