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Outsourcing Risks & Strategies: Sears in Mexico

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1.Country Risk and Strategic Planning Analysis

My business venture is to open a Sears store in Mexico. Prepare a 1,400-2,100-word paper in which you conduct a risk analysis for your selected global business venture. Analyze the following risks in your paper:

1) Social/cultural risks
2) Cyber/technology
3) Physical environment

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Social/Cultural risks

At this time it appears that there is a rise in violence in Mexico due to the increase in government crack down on drug activities there. This makes the outsourcing process dangerous for businesses as it exposes the lack of security that is permeating the country. Some refer to the situation there as "lawlessness." Therefore, if Sears outsources there, it is very likely that the chaos will affect the employees. Also, if an emergency occurs, Sears will not be able to keep track of the operations of the company since travelling there will be too dangerous (e.g. kidnappings, etc...). "The number of drug-related deaths rose to 4,000 in 2008, from 2,500 drug-related deaths a year earlier, according to the Council on Foreign Relations. ...

Solution Summary

This solution is comprised of detailed explanation of some of the risks involved when outsourcing as it relates to global business ventures, focusing on Sears in Mexico.