case study part 2

The scale of machinery being tendered by the Mexican Government will contribute to a 25%-50% overall increase in production over the next 5 years which will equate to more interest from world wide automotive manufacturers to setup shop in Mexico. This size of opportunity to meet the launch schedules being proposed would require Veltry to build a plant in the Saltillo area an occupy it for the next 4 years eventually becoming a 24-hour service center for their machine in the region. Developing a company in Mexico has many challenges such as governmental regulations, qualified work force in terms of skilled trades, issues with gangs etc. But even with those risks apparent most of the time, many companies have been able to go to Mexico and become very prosperous over the years. Veltry is viewing this as a very good opportunity to not only be a consultant but to deign and produce their own equipment for the automotive industry there. Veltry has had a good standing in the North American Auto Market and good relationships with IFI's in the United States and Canada. Many are recognizing Veltrys' expertise in their niche market and are representing Canada quite well as a manufacturing leader providing good paying jobs to 5,000 workers. They have also achieved a reputation for taking on difficult projects in terms of design and delivery dates in Canada and the USA which include Commercial and Bank risk at times which never slowed their interest in winning project tenders. After the trade show the president brough the potential opportunity back and presented it to the monthly Executive meeting in Toronto, Of the 16 executives who attend the meeting in person or by virtual, most expressed some interest in taking a closer look at the project. Their main concerns about n out in such a large endeavour included constructing or renting a new facility, staffing with qualified personnel and the overall risk versus rewards it would generate. The scale of machinery being tendered by the Mexican Government will contribute to a 25%-50% overall increase in production over the next 5 years which will equate to more interest from world wide automotive manufacturers to setup shop in Mexico. This size of opportunity to meet the launch schedules being proposed would require Veltry to build a plant in the Saltillo area an occupy it for the next 4 years eventually becoming a 24-hour service center for their machine in the region. Developing a company in Mexico has many challenges such as governmental regulations, qualified work force in terms of skilled trades, issues with gangs etc. But even with those risks apparent most of the time, many companies have been able to go to Mexico and become very prosperous over the years. Veltry is viewing this as a very good opportunity to not only be a consultant but to deign and produce their own equipment for the automotive industry there. Veltry has had a good standing in the North American Auto Market and good relationships with IFI's in the United States and Canada. Many are recognizing Veltrys' expertise in their niche market and are representing Canada quite well as a manufacturing leader providing good paying jobs to 5,000 workers. They have also achieved a reputation for taking on difficult projects in terms of design and delivery dates in Canada and the USA which include Commercial and Bank risk at times which never slowed their interest in winning project tenders. After the trade show the president brough the potential opportunity back and presented it to the monthly Executive meeting in Toronto, Of the 16 executives who attend the meeting in person or by virtual, most expressed some interest in taking a closer look at the project. Their main concerns about n out in such a large endeavour included constructing or renting a new facility, staffing with qualified personnel and the overall risk versus rewards it would generate