University of St. ThomasMaster of International Management

International Capstone

Professor: Lawrence Koslow

Student: Gabriela Delsignore

February, 1994

Summary

The capabilities of unrguaian infrastructurc in order to competeeffectivel.v in rvorld markets. .................................3

Michael Porter's "generic strategies". .........................4

Importance of objective setting, implementation andenvironmental match as ingredients to soundstrategic management.... ...............5

William Hall's thoughts on "Survival Strategiesin a Hostile Environment". ....................................6

The relationship between effi ciency and strategy.,............... -..............7

Essential contingencies of motivation andthe atmosphere in which they operate. ................8

The role of discipline play in organizational commitlment................9

The importance of "market continuity", especially for companiesconsidering a shift or change in their sfrateg.v............................10

"Real Leadership" and "Illusory lradership"in the companies of today ..-......10

How companies and governments can lvorktogether productivelt:... ............-. 11

References .....-.......-...13

2

Analvze the cap¿trilities of your nation,s inlrastructure for its impacton the nation's ability fo compete effectively in rvorld markets.As an introduciion we can sayihat it seems ¡mpossible tothink of Uruguay competing ¡n worldmarkeis as it is a country that has a very scatce develcpment and industria¡¡zation. On theother hand, its ier¡tory is exremely sma¡l and its population is noi num,-rous.

Although it is true that other countriés with s¡milar terr¡torialand demographic character¡sticshavebeen successful, Uruguay has a certa¡n his.ioricat background _i;the potitical, migratoryand economicf¡eld-that has.,mar*ed,,¡n someway iis development and ¡is abiliiy to cJmpetáin worid markets.

A very importani factorthat must betaken ¡nto account as regards this couniry is ¡is exceflentgeographical situation. Overlooking ihe sea, wiih excellent naiura¡ ports and s¡tuatedbetween two ¡mportani countr¡es *v/e could say the two most imporianl ones__ of Lai¡nAmerica. This situation is in ¡isetf a comparative adyaniage as, cons¡der¡ng its position,Uruguaycould work as anoutletforallregionalproducis and, inthisway, itwould offeia highlyimportant service to ¡ts enormous neighbours.

uruguayalso has a mird cr¡matewhich aflowstrafficwithout atmospher¡cobstacres (snoMaIs,etc-) as well as it offers the poss,bility of farming quite easity. Moreoyer, consider¡ng ¡tsreduced surface, it has a vasi fluvial network wliich facilitates communication.

Uruguay has an important tradition as regards the level of educai¡on of ¡ts poputation which¡t would be ¡nteresting to recover as in rhe last decades lhis level of exce ence has beengradual¡y d¡m¡nishing. It also has, symbo¡ical¡y speaking, two great myths which are the"Sw¡tzerland ofAmerica" and the ,.S¡tver Cup,,. A Uruguayan journalist, Ernesto GonzálezBermejo, wrote two years ago: "why dowe call Uruguay the Switzerland ofAmer¡ca? Is it forthe same reason Switzerland is the Uruguay of Europe?,, And he answered ironicalty: ,.olcourse, ii must be because of ¡ts neat sireets, the discipline of¡ts inhabitants, the capaóity ofwork, the perfect¡on of its clocks and its snowy peaks ...',

In briel myths sometimes are useful to impel towards reforms and gro\#th, while othersparalize. Jn the case of Uruguay, I am inclined to write that the ¡atter to;k place. The samehappened with football from the fifties up to 1993 (at least). Anyhow, not eveMhing is lostand ¡t is poss¡ble io use some m!,ths again as \ el¡ as generatá new ones which siimulatecreaiion and quality in order to reach ¡evels of excellence and be ab¡e to compete ¡n wor,dmarkets.

It is interesting to underline the presenicircumsiance of regional integration ¡n wh¡ch Uruguayhas participated dur¡ng the lastyears. The implementatio;and star_up olthis pro;ect canfanáshould) siimulaie and impel uruguay to redefre iis rore w¡thin the Mercosur. rt is widelyspoken of uruguay as "lenderofserv¡ces". ltwourd be intesiing tothink in what kind ofserviceUruguay could be different and what aspects of productjon ü ¿ould be able to develop. Theinsertion ofUruguay inthe Mercosurcould be the beginning of its participation ¡n otherworldmarkets.

There are some isolaied successfui exper¡ences which could be considered as models toactivate s¡milar others. The software industry, for example, has developped a series ofcomputer programmes which are be¡ng commercialized w¡th success in the reg¡on. ln ih¡s

field. an excellent handling of resources has been made and it has been able to maximizeresults

Scme local compan¡es have deyelopped "economies of scope" \.!fiich let them produce smafiquantities ofspecific products, unlike the "economies of scale" too difficult to be implementedin a smail country Iike Uruguay, lvith a small internal market and with scarce possibjlit¡es ofmassive penéiration ¡n other markeis.

Descritre in detail Nlichael Porter's "generic strategies,' and providea brief description of e¿ch element.

M. Poñer statesthata country's success in a certain industry at an intemaiional ¡eveldependsupon the characier¡stics of the environment where the compan¡es representing said industrydevelop themselves. These charaeterist¡cs are as followsi

a. The country's s¡tuation in relation to the factors oi production as, e. g_, skilled labour orthe¡nfrastructure needed to suppoñ ¡ndustrial aglivity.

b. The characieristics of lhe domestic demand for the secto!'s products or services.

c. The situation of the industr¡es related to the sector, e. g-, suppliers.

d. The country's conditions in for6e for the seation, organ¡zation and management of thesecior's companies, as well as the ways of intemal competition.

Now, why do some companies succeed while others, no matter how favourable thosedomestic character¡st¡cs for industry are, do fail?

Porler shows that the strategies caried out by successful companies, in spite oi beingparticular to each one, have certain common character¡stics, name¡y:

a. Innovaiion and change: lt refers to the use of new methods or ways to compete. Forexample, Sony was the first company to use lransisiors in radios. lnnovation ¡ncludes newtechnologiesand newwaysofdoing things. Th¡s can be shown ¡n the design ofa new product,in the process of produciion, in the market's approach or in the ways of organizing andtraining. li is very important that the company notices something new, necessary forconsumers.

b. System ofvalues: Being defined as allthose activities that take pañ ¡n the creat¡on and useof a product, the companies thal handle that system well are ihose mnsc¡ous ofthe need ofa close and consianl exchange with suppliers, channels of distribution and buyers, in orderto mainiain an advantage over ¡is competitors.

c. Unceasing improvement. Il a company rema¡ns inactive there wili always be anothe. ihatcan imitaie and overcome it. Advaniages are lasting ¡f the company has human resourcesofhigh quality and technologicalcompetence, and ¡f ¡i also makes continual investmentsandchanges that ¡mply a betier quality in the products. newness and excellent serv¡ce.

The only way of maintain¡ng an advantage ¡s through the incessant search of d¡fferent andbetter methodologies, that is, through a cont¡nual change. Thai is not easy to be ach¡eved.

4

We must overcome manybarriers to changes and above all, ws mustmake an attempttowhatSchumpeter called "creative autodestruction", lt means that sometimeswe must leave asideadvantages that still preyail so that they are replaced by others, morc advanced ones.Compan¡es must Iet ihemselves be impulsed by externalfactors that make them mnt¡nuouslychange and improve.

d. Séttling strategies with an international approach: This means severalaspects. In thefrstplace, it is extremely importantihai the company sells its products alloverthe world and doesnot limit itself to the domestic markei. Secondly, this impl¡es analysing the activitiesdevelopped ¡n other countries and trying to take proflt of the local advañtages- ln the thirdplace. it is important thai a straiegy ai an intemational Ieyel coord¡nates and integratesiniernational activ¡ties in order to obtain economies of scale and take advantage of knowl-edge, apart from prolting from the reputation of an imposed brand- We must not forgetthatthe advantages atan intemaiionallevelmust be added and coordinated w¡th the advantagesofthe country oforigin ¡n which we must invest in development and tesearch. Theadvantagesat an intemat¡onal level do not replace the ¡mprovement and ¡nnovat¡on in the country,

From what has been stated above ¡t can be concluded that one of the key po¡nts that muslgu¡de the companies' straiegy, accord¡ng to Porter, is innovat¡on. In that sense, said authorgives some rules so that the impulse needed by the ¡nnovai¡ng challeñge is always present:

a. Lookingforbuyers in difficulties so ihat they putpl.essure onthe search ofoptima¡solut¡ons.

b. Tuming ¡nto opportunities the obstacles that maybe the severe norms that rule the seclor.

c. Link¡ng to first rate suppliers.

d. Considering the staff as a permanent resource that we must tra¡n and st¡mulate,

e- Co,'rsidering the compeling companies as a source ol motivaiion.

Porter susiains thai innovation mmes from pressure and chal¡enge and that those elementshave much relat¡on to the environment where the company is. That is why a good managerhas to know howto create an env¡ronment!yith said conditions and dist¡nguish the challengesthat must be accepted.

Analyze the relatiye importance of otrjectiYe setting, implementationand environmental match as ingredients to sound strategic manage-ment.

Obviously, there is a close relaiionsh¡p between ihe goals the company pursues and lheirimplementation, that is, the ways of reaching them, the tactics to be followed and ihe meansor resourees to be used. Thal inienelationship is also carried out in a ceriain environment,more or less changing. But, how does this system work?

Strategy can be conce¡ved as a general programme for defning and reaching the goals ofthecompany, orfrom another po¡nt of view, it can be considered as the company's answer to ¡tsenvironment in the course of iime.

5

We can lacklesaid system ihrough thetradiiionalconceptwhich means a rational, predictablemodelwhich sta.is bysetting goals, alwaysclear ones, which laterfindsthe appropriate,,form,,to put them into practice and \¡,fiich has all ihe resources de€med necessary.

But manyiimes, without prejudice to the very last mission that can truly be very ciear, realitymakes us see thatconcrete goals cannol bewelldefined, tháa choice must be made amongthe different poss¡bleforms ofdoing things andthat not allresources are availabte. Andwhatis still worse, the charaGleristics of the environment can be so turbulent and unpredictable,that after we have fnished designing the straiegy, the same does not adapt to thecircumstances.

Some authors th¡nk thatthe model must be the otherway round, thatwe must begin by lookingfor resources to see \¡yhat \¡ye have, taking into account that tomonou/s capacities dependupon our preseni sirength. Late., we should adapt ihe skills and resources we count on, soas to determine the tactics to achieve the goals. The ¡atter can, on the other hañd, varyaccord¡ng to an ever-changing environment in which ii is difficult to make predictions insituations that have a high degree of uncertainty.

Therefore, a solid strategy does nol mean "a strategy", "the strategy" elaborated infulldetaitsand lateradopted as a religion- On thecontrary, the strategy mustbe conceived as somethingdynamic, as someth¡ngthat must mñl¡nuously adapt to the env¡ronmeñt andto the availableresources. ¡t must be the result of a coniinuous analysis of the env¡ronment's opportun¡tiesand menaces, and the internal strengih and weakness.

Describe \\'illiam Hall's thoughts on "Survival Strategies in a HostileEnyironment" including the basic elements.

W. K. Ha¡l handles a matrix in which he comb¡nes positions of ¡ow, med¡um and highdifferentiation of products, with high, med¡um and low costs of operation. By relat¡ng theseconcepts to the strategies of survival, the author states that a company has the maximumprobability of surviving when it prov¡des very d¡fferentiated products or services and al a Iowcost. On the contrary. the company's probabilit¡es are minimum when it provides not muchdifferenliated producls orservices andatah¡ghcost. Betweenthese extreme pos¡tionslhereappear seven other ¡ntermediate possibilities.

Hallalso considersthai generally, the companies that are ableio make a successfulturn, theydo ¡t in a sequence of two steps: bringing down costs and afteMards, increasing thedifferentiat¡on by better quality or new designs.

From a study on car indusiry and farming equipment industry, it has been conc¡uded thatihose companies which had successfully overcome the periods olcrisis within theframeworkof the largest differentiation and ¡ow cost had some factors in common, as for example: skillforhandling in thef eld ofdiñerentiat¡on in the process ofproduct¡on, technicalexperjenceandfa¡r treatment to employees and managers. At the same t¡me, ihe managers of sa¡dcompanies were hardworker, austere, w¡th a full knowledge of their job, reliable, upr¡ght aswell as ¡nclined to lisien io other people's opinions

6

Explain the relationship b€tween efficiency and strategy'

ln general, ii is possible to say thai eff¡ciency is measured through the relation between inpuis

or applied resources and the producf obtained. On the other hand, efficacy would be

measured ihrough the relaiion between the product orseruice obta¡ned and ihegoals set by

the company, the Iatier being considered in d¡rect relatlon to the environment's requ¡rements'

lf strategy is thought as ihe answerof the organization io the env¡ronment, itwould seem that

this strategy is more related io the concept of eflicacy than to the concept oi efficiency. It is

also said that pay¡ng attention to effic;ency means having the mentality of a closed system

looking inwards, \¡vhile the st.aiegy needs open sysiems interacting with ihe environment'

Ontheotherhand,fromP-Druckertoseveralotherauihors,ithasbeenemphasizedihatitis preferable to "do the correct things" rather than to "do them well". This underlines the

concept that ¡t is more important to deflneihe strategy well, ¡nthe sense of determiningwhai

must be done in order to satisfy the environment than to worry about efiiciency'

Neveriheless, all the above-exposed must not claim that we have been deceived Those

concepts must not be seen as oppossd. We simpty wanl to underline the importance of the

sirategical app¡oach towards the environment, towards soeiety, towards the custome¡-,

towards consumers. we haye tried to avoid s¡tuations in "vhich

the organizations manufac-

turing ihe most perfect products and as efficiently as possible, forgot that they were doing

things that did not appea¡ to the mad(ei. But the stress we put on eff¡cacy musl not be

cons¡dered as a contempi for efficiency. ln faci, they musi be ¡ndissolubly joined Moreover'

maybé "yvfiatlhe marketdemands" is precisely a "product efficientiy made"' with lowcosts and

high qualiiy. And si¡ll more, the whole society claims, or should claim for an elfcient use of

scarce resources.

Therefore. rhen time to design a straiegy arrives, ii ¡s h¡ghly ¡mportant ihat special pr¡ority is

given to efficiency, efiiciency that allows to bring do\¡rn costs 1o a m¡nimum, take advantage

áf ru"orr"". to á maximum, apply them in the differeniiation of products and inseasingquality.

The history ofcompan¡es shows ihai thosewhich were successful and couid survive ai iimes

of crisis afe the ones that aitached special imporiance to efficiency. The relation between

efflciency and straiegycan also be aPproached from a diñerentpo¡nt of view, wilich ¡s the very

process of planning the strategY.

Many companies invest too much iime and resources ¡n th¡s task, forgetting the concepi of

efficÉncy and creating enormous intemal bureauffacies of experts and advisors which are

very expánsive and which someiimes are harmlul insofar as they make people lose contact

vritÁ reality (the very naiure of the sirategy) and they miss inieresting opportunities. For thai

reason, we must pay aiiention to the relai¡on coslpl'oflt of the strategical planning and also

demand here the carrying out of parameiers of efficiency.

Describe the three essential contingencies of motivation and discussthe atmosphere in which they operate.

From Maslow w¡th his sca¡e of necessit¡es, go¡ng through Herzberg's factors, going on withMccregor, Argyr¡s, Likert up to Skinner, Hamner, Madler and Lawter w¡th the¡r theories ofreinforcemeni and expectations and so many otherauihors, there are manyexperts who havetackled the subject of mot¡vat¡on. An ¡ndeed, we do not have the last word yet. The only trueihing is that motivat¡on is an exc¡t¡ng as wel¡ as complex phenomenon, whose resolut¡ondepends on many c¡rcumstances.

There are lhree manin contingenc¡es which must be taken ¡nto account when moiivation ¡sstudied in a job s¡tuation. These are:

a. fraining workers: lt is esseniialto make sure ihatworkers can really do their work, that theyhave ihe necessary skilland knowledge to cany outtheirtask saiisfactor¡ly. Noonecanfeelmotivated before someihing \',/h¡ch he does not know haw to tackle- He can be moi¡vaied lo¡earn totac&le it, buinottoactd¡rectly. That is, determ¡ning the needsoftraining and providingit ¡s a most ¡mportant subject that the person ¡n charge of manag¡ng has to handle. On theother hand, the need of training is cont¡ñuous in an environment of permanent change,

b. Fa¡r systems of evaluation and rewards: ln the frst place, we must remember that forevaluating ¡t is necessary to set goals aga¡nst which we can measure results and ¡t is most¡mportant that people accept them and get involved w¡th them- Ai the same time, amechanism of evaluation makes goals be executed in a belfer way. And it is absolutelynecessary that the mechan¡sms ofevaluation ofwork have a minimum subject¡v¡ty, which isnot always easy-

As far as rewards are concerned, it is noi possible io studyth¡s subject in depth within the l¡mitsofth¡s work;allthesame ¡t is ¡mportantto underl¡nethefactthat not everyperson ¡s interesiedin the same things and ihat, at thetime offxingthese rewards, we must take into accounithepreferences ol each one, wh¡ch is not easy too.

And still more important is relat¡ng rewards to the necessary achievemenis ¡n fayour olthemmpany, in order to really establish that a larger motivat¡on imp¡ies a Iarger productivity.

c. Credibility in the system: The above-mentioned system and the success of motivation areimposs¡ble if there ¡s not an env¡ronment of cred¡bility in the organization. And thatenvironment of reliab¡lity- cfedibil¡ty, ¡ntegrity ¡s fundamentally the managers' responsibility.

Now, ihe three elements are very much interconnec'ted and in fact, they are part of a muchIarger environmeni.

Tackling this phenomenon of moiivaiion with a systems' approach (Lyman porter andRaymond Miles) can be enormously useful to po¡nt oui the complexity of ih¡s subject.

ln a more schematic exposjtion, ii is possíble to express thai mot¡vat¡on is the result of the¡nterconnect¡on of three groups of var¡ables, ¡,{hich are:

- The characteristics of people: Each person brings to his work his interests, tasles, needs,aititudes, etc.

8

-Thecharacteristics of the work Thedjfferenttasks haye attdbuies ofgreat influence. Cuttingstones is notthe same as assisting a sickperson, norfeeding a computerw¡th data ¡slhe sameas plann¡ng a building, etc-

- The characterist¡cs ofthe work's situation: They have to do with the organ¡zationa¡ cultureof each company and with the atmosphere of work formed by the relat¡onsh¡ps wiihcolléagues, superiors, subordinates and w¡th every person linked to the secior.

Evidently, just mentioning all those factors ¡s enough to show the diffculi¡es ofthe phenom-enon of motivation as well as the inierest it arouses-

Maybe to begin wiih, ii could be a good ¡dea to think thai ¡n th¡s sub.ject the.e are no ,.sacred

truths" and that different circumstances have an influence in many ways.

\l'hat role does discipline play in organizational committment? Ho§can we implement disciptine in a modern world?The concept ofdisc¡pline ¡s for the major¡ty very muchjo¡ned to that of effic¡ency, which showsits importance. In general, most people working in a company are good, there are someindifferent ones, and only a minimum of them c€uses problems.

lf we go back to classic€l authors, we can find in Henr¡ Fayot the discipline as one of h¡spr¡nciples- And th¡s author sa¡d to that respect that the rules of the game, the norms, shouldbe fxed by all the members of the organ¡zat¡on, that those rules should be observed byeveryone and thatthere should be a mechan¡sm ofsanctionsto be appiied when necessaryand without except¡ons. lt can be said that this is one of Fayol's pr¡nciples that has not Iost¡is validiiy.

A more modern exposition can lead us to more practicat and valid approaches, as ihefollowing one: there are bad, unreliable and incompetent emp¡oyees. ln this case, the onlyoption ¡s todismiss them. lf they are good, reliable and competent, there ¡s no need to worry-lfthey are reliable but incompelent, in this case, we must putsiress oñ theirtra¡ning and thesuperv¡sor's support, apart lrom the fact of putiing each worker ¡n the appropriate posi. Iftheemployee ¡s mmpetent but unrel¡able, we must make use of the system of evaluations andrewards,

ln any c¿se, we must not forget thafthe example ofinlegr¡tyofthe higher levels is a necessarycondition to reach disc¡pline.

From another approach. it can be said ihat in the world of today where there preveíl ideas offreedom, democracy, ofrejection to authoritarism, ofpa¡licipat¡on. ¡t might seem more diificulito impose the idea of discipline mmpared w¡th what could be done ¡n Fayol,s iimes. But this¡s not so: in fact, people need io be governed by clear rules and byfair systems ofsanctionsand rewards, accepted by everyone and applied with ¡ntegrity by those responsible for theorganizat¡on.

Describe the importance of "market continuity,', especially forcompanies considering a shift or change in their strategy.Continu¡iy inthe marketcan be cons¡dered asoneofthe tactics old¡ffereniiai¡on of the productthat Iead to a s¡Jccessful change of s¡tuatioñ. lt ¡s the propensity to concentrate on the supplyof products for a yery familiar segmeni of lhe market instead of expanding towards newmarkets or with new act'v¡i¡es.

Vúhen we have been able to penetrate a market, we should not neglect it. Markets are noistatic, but instead, they are more and more dynamic. As a consequence, ¡l is necessary tofollow customers very closely and develop products that permanently ad.¡ust to their needs.

Some companies that have problemsieeltempted io tesi ¡n othermarkets and thus, theyjumpfrom one market to another wasting resources and without having success.

That does not mean that we should not develop new markets. But we must take inio accountthat a change of market takes a lot of time ¡f we wani to do th¡ngs well. We must carefullyevaluaie ¡f the company can face lhe effort of penetraiing a new market and at the same time,keep those already gained.

It ¡s always convenient to evaluate the possibility of taking the well-known market to ¡ismaximum potent¡a!. Sometimes the weli-kno\a,n market begins to decl¡ne because of thecompany itsellwhich hasneglected ¡i, and for an atient¡ye competitor, ihiscantum into a goodchance.

ln general, the companies thal are able 10 overcome their difficuliies successfuliy are thosethai pay special attenfion to the¡r well-known and well-worked markets,

Those successful companies have known how to develop their products for their historica¡markets before movingtoother newones. They have specially considered keeping án imagealready imposed among consu.ners.

Most companies that have failed did not pay ioo much atteniion to their ovm experience.

Provide your analysis of to nhat degree $e have .rreal leadership,' andto what degree rve have "illusory leadership', in the companies oftoday.¡t is said that there is a "real leadershjp" when those that manage a company know theirmarkets ve¡y well, know how io serve lhem, how to implemenl mrect strategies ofdiffereniiaiion of products and also take into account the necessity of obtaining acceptablecosts.

fhose managers have veryspecial personaltraits. They are essent¡ally honest. upr¡ghtandthey are ready to make personal sacrif¡ces in pursuit of mak¡ng their companies prosper. Theyhave a deep knowledge of the industry or the area of services \ here they are operai¡ng andthey have a technical command of every process of production and ol the relat¡ons withsuppliers and customers. Besides, they know how io dealw¡ih the staffand they are able to

10

motivaie and involve their col¡aborators. ln general, lhey are people who have added to the¡rtheoretical knowledge a large experience.

The "iliusory Ieadership" is wttat ¡s observed in compan¡esthat pay highfeesto people havingimportant "cun¡culums", much presi¡ge, but who when time to face a crisis anives, do notknow "what to do". They do not have neitherenough experience nor suff¡cient personalitytohandle a successfulchange. Those managers devotethemselves to exe¡1more pressure onsales than on costs, and they are constanfly trying to make new businesses neglecting themarkets already conquered.

Maybe, the great theorelical development of management of laie has made many peoplebelieve that making some studies on the subject and adding some enthusiasm ¡sjust enoughio manage a company. Oicourse, allthat is necessary and itmustbetaken into account, butwe must not make a mistake by think¡ng it ¡s enough.

A "real" know,edge of businesses and ofthe sector where the company operates as well asthe example of integrityand devotion ofihose responsib,e fordecisions are ¡ndispensable forbeing able to exert a "real leadership".

Provide some insightful observations on how companies and govern-ments can work togetber productively.

ln a modern markei economy the goverlmeni cannot assume the role of ,'protectoi' ofcompanies as ii could have happened, for example, in Uruguay, some decades ago and ascertain sectors, ¡n some cases, siil¡ demand.

Nevertheless, both govemments and companies "logetheI,'can co¡laborate inordertoobtainthe welfare of the \rYltole nation.

The purpose ofthis work is not to analyse lhis subject deeply, wh¡ch, in add¡tion, has po¡¡t¡ca¡connotations that give rise to d¡fferent opinions. On the other hand, the concrete elementscan be difierent according to each country_ However. ¡t is possibie to give some basic ideasabout \¡rhat the role of govemmenis should be, as for example:

- Sett,¡ng clear rules at a masoeconom¡c level, which al¡ow managers io handle situations,w¡th some basic knowledge of the enyironment.

- Deregulat¡ng to a minimum so as toguaIantee the citizens'basic rights buta owing the freep¡ay of market.

- Promoting production in sectors where there are comparative advanlages, in strategica¡sectors and in sectors that have a multiply¡ng effeci ior the whole economy.

- ln countr¡es l¡ke Uruguay, promoting foreign inyestments in productive sectors, forwhichwemust keep the already-mentioned clear rules and show stab¡l¡ty and securiiy.

- lnvesting ¡n publicwoiKs tending to proyide an appropriate infrastruciure for both producl¡veand commercial aciivit¡es as well as for commun¡cations in oenerat

11

- Through por¡cies ofeducst¡on and §c¡entific fesearch, promoting efficiency and quarity in a,- Gjv¡ng assislance to companies alamereñtiate proiuJ; #;"H;": Plgas thevengage themselves to bring down costs, to

;[!"#:['*u1;:itH*x,T"""*,J:,,:1iljll^."j.ü;ü:9,",nsethroushdirectmnquesrornewrn'arrlisñ;#ffi::l'riIfl::f*XH:Í::í:¡¡*i'-".,t¡onÜ",il',-r,""

managers abroad).

;:1".[Tls,,""H'*J,*:tr§:il.i!?f#5:,J"[:,:,¿,iffffi*il.T:*§f.il:;?

12

References

- Drucker, Peter - The Effective Executive. 1993.

- Fayol Henr¡- The 14 Principles (1914).

- González Bermejo, E. - Four steps for the World. 1992.

- Hall, W¡l¡iam K. - Survival Strategies in a Host¡le Environmet. HarvardBusiness Review. 1980.

- Koslow, Lawrence E. - The Future of Mex¡co. 1977.

- Maslow, A.H. - A theory of human motivation. Psycholog¡cal Review.(1s43).

- Miles, Raymond E. - Theories of management: impl¡cations fororganizational behavior and development. l9TS.

- Nueno, Pedro - Corporate Turnaround. 1991.

- Porter, Lyman W. - Behavior in Organ¡zations. 1974.

- Porter, M¡chael- Competitve Strategy. 1980.

- Z¡mmerman, Fred - Readings in Strategy and Pol¡cy.