ACME Mexico City Analysis Essay

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If the department is not sure of the right way to go, an ultimate decision should be delayed if at all possible. At other times, it is not always possible to know the proper answer with certitude and an educated guess has to be given. Regardless, the data needs to be timely, given the proper amount of weight, the proper level of analysis and the ultimate goal should always be to get the best results at all times but without violating legal or ethical standards.

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As far as a challenge or issue for Acme Mexico City, the more prevalent challenge that has to be addressed and assessed was already mentioned earlier. Mexico City and Mexico at large are notorious for their waste, corruption and other societal and infrastructure problems (HuffPo, 2014). This is not to say that Mexico is a giant slum, but their problems relating to crime and graft are prolific (Yahoo, 2014). They struggle greatly with the violence of the drug cartels as well as politicians that are more concerned about lining their own pockets rather than doing their appointed job on a scale that makes the United States and other modern industrialized nations look like kids' play. The concept of throwing a bribe just to make things go smoothly would shock people in the United States and Europe but it is commonplace in Mexico. This is not to say that the European Union and the United States do not have high regulatory and legal hurdles for businesses because they do. However, the problem in the EU and the United States is more related to over-regulated and insipid laws rather than corrupt and/or lawless politicians.

Essay on ACME Mexico City Analysis Acme Assignment

Obviously, Acme is not going to get into that game but the decision-makers and executives need to keep in mind that such behavior is common or even expected but Acme should not dare stoop to that level or allow Acme's reputation to become soiled in the nation or Mexico or anywhere else. Wading through the labor laws and unions will be trouble enough because the prevailing market wages and conditions will be stretched or even ignored by the workers that have a vested interest in the pay and benefits they will receive as well as the people that represent them (or want to represent them).

Work Schedule

The author of this report has come to a draft staffing schedule that shows each hour time slot, the minimum amount of people necessary for that slot and the amount of people planned for that time slot. In general, the author of this report took the minimum staffing level and added a buffer of 20% so that if people call in sick or quit, then the minimum amount of people needed for the floor at any given time is still met without having to call in anyone new from outside work. This will eliminate excessive instances of paying people working less than four hours $500 even if they do not work the full four horus and people earning $1,000 will have worked their entire eight hour shift before earning $1,000. If the full wages are due even if one leaves early, this is surely the best way to go because overpayment of wages is wasteful and it is easier and more expedient to have extra people on staff.

If it is found that 20% is too much of a cushion and the floor is overstaffed, then the cushion can be reduced to 10 to 15% but going only the minimums is less than wise and should not happen because scrambling for fill-ins, paying people wages they really do not earn (if they don't work the full day and thus make the same as someone who did) and running the risk of the floor being understaffed just cannot be allowed for so doing a cushion is the best way to go. Such a strategy will also assist in ebbs and flows in the business day. Acme will have committed to paying the wages, so the staff that is not busy working can help with other tasks and projects during their down time. It should be noted that part time and full time shifts will be staggered and positioned to keep the overall headcount below 30 total but over the minimum by at least 3-4 people at any given time except for the times where 28 people are needed and the 30-person cap cannot be exceeded. The author of this report would express some derision about the 30 person cap when the minimum level staffing is 28 for two different hour slots during the day and 26 for a couple more. The 28-hour slots allow for a less than 10% staff loss before the minimum amount is eclipsed and only four hour are left in the day at this point. If the staffing counts dips below 28, this will require calling in someone else and paying them at least $500 and that is exceedingly wasteful.

This condition and happenstance is really a limitation imposed by the Mexico national and Mexico City local governments. Requiring that people be paid irrespective of the hours they work and to be paid $100 in pesos for doing nothing is absurd. Unless the employee is restricted in what they are allowed to do in their free time, above and beyond the ability to leave the store (such as is commonly the case in the United States), the fact that they have to be paid a regular hourly wage while not being productive is foolish and is a burden to businesses. It is practically begging firms to hire more part-time workers. That being said, the use of part-time workers is not a panacea either because of the 50% restriction. In the name of trying to protected and help employees, the authorities in the country of Mexico and city of Mexico City are actually hurting the fortunes of workers to the point that it seems like almost by design to pit workers against businesses, not to mention unions as well.

Staffing Needs vs. Planned Staff -- By Hour

Time Slot

Minimum Staffing Needed

Planned Staff

7 am to 8 am

10

14

8 am to 9 am

12

16

9 am to 10 am

18

22

10 am to 11 am

22

26

11 am to 12 pm

22

26

12 pm to 1 pm

26

30

1 pm to 2 pm

26

30

2 pm to 3 pm

26

30

3 pm to 4 pm

26

30

4 pm to 5 pm

26

30

5 pm to 6 pm

28

30

6 pm to 7 pm

28

30

7 pm to 8 pm

24

28

8 pm to 9 pm

22

26

9 pm to 10 pm

14

18

10 pm to 11 pm

12

16

Underlying Assumptions

As was started to be noted above, there is going to be turnover and sick associates and thus a buffer zone is required to prevent scrambling and unnecessary payroll and benefit expense in the event that someone calls in sick. While the buffer need not be excessive, it should also not be too small either. The time period from 5 pm to 7 pm is going to give little margin for error but the rest of the day should be stable most times. Presumably those two hours are the peak hours of consumer traffic and thus the hard cap of 30 associates is very unfortunate. The hard cap of 30 employees really only affects those two hours and, to a lesser extent, the four to five hours preceding it. However, having 30 people on staff when 26 is the minimum should be sufficient, so the late afternoon hour slots should be fine. The use of part-timers should be pushed for less-skilled jobs such as entry-level workers and other non-management personnel. The reason for this is that full time workers are effectively being paid for their lunch hour, so $100 per full time person is being spent with no return other than the expectation that the person will be back after the hour lunch is done.

Non-Typical Days

To delve a little deeper on items that have been touched on before relative to proper staffing levels and flexibility, non-standard environments and days can lead to massive swings in shopping levels. For example, if a hurricane slammed into the Mexico, people would be buying planks of plywood, nails and hammers in bulk to the point that they would sell out (AP, 2014). In addition, the staffing caps that are currently rigid and in place would almost certainly be well short of what is needed and called for if a mass run is made on certain types of goods due to a weather event or a run on a type of good due to a perceived, projected or actual shortage. For example, if the incandescent light bulb ban happened in Mexico like it did in the United States, there… [END OF PREVIEW] . . . READ MORE

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