1a.

The unique selling position of FBH the non profit community service
organization in Mexico city facilities has proven itself to be one of the best
business models of its type within the social assistance field in Mexico. The
foundation provides people a better life throughout the different stages of living
by preparing to present alternative market strategies to the board of directors
for the three senior citizen homes run by the foundation in Las magnolias, San
Francisco and Teodoro Gildred. The business focused both internally and
externally letting the staff, government organisations and volunteers know why
the FBH facility is different. This unique selling position of the FBH serves as a
central theme for marketing campaigns and motivate business decisions and
sets this business apart turning it into a competitive advantage.

The main objective of this foundation is to create, sustain and manage

residences with welfare or non profit objects that meet a social need , contribute
to the development and maintenance of the foundations essential works .A
consulting team to research the services and marketing of each home as well as
the external environment like the demographic shifts in the Mexican population
which projected to drastic need for senior living facilities which have not yet
decided to meet the need are the challenges to be faced to compile information
into a convincing recommendation.
FBH in order to create promote and operate establishment for the benefits
of children , youth and adults for their education and well being follows guiding
principles in everything they do
a. Commitment and quality with a high level of service
b. Tork team and effort in fulfilling goals
c. Open , honest and constant communication
Competitive advantage is about superior performance , operating at lower costs
commanding a premium price or doing both. Thus on a whole to summarize the
competitive advantage of the three FBH facilities by emphasizing the
organization mission and operating values is “ to treat each person with dignity
and encourage a holistic approach to develop the individual through
personalized care and a loving touch”.

1 b. FBH served unique population in terms of both geographically and socio

economic group. Almost half the residents across the three facilities
RSF,RLF,RTG, were between the ages 80 to 89 with varying medical and
assistance needs. San Francisco targeted the mid upper economic sector of the
city and surrounding areas. There were also residents who received subsidized
or free room and board as part of the mission FBH. On average the residents in
RSF lived for 6 years with an average resident age 83.
The Las Magnolias was purchased by FBH in 1997 though the location is beautiful
and landscaped to perfection the location was quite isolated from high socio
economic sector neighbourhoods and while RSF was rather difficult to access
because of heavy traffic and narrow streets. This situation negatively affected
the appeal of the residence having the lowest utilization rate compared to the
remaining facilities. The volunteers were less compared to other facilities
though the services offered are all same in RLF and RSF. The common areas in
RLF were larger with newer construction . The residents room were bigger with
various floor plan options including dining room , master suites, a gymnasium, a
peeking garage and guest room. No resident had ever left facility because of
disappointment with service or facility quality.
The RTG association serve the needs of the growing aged population in lower
socio economic sector of the capital with the same dignity and quality offered
to those from wealthier sectors. Since the residents at this facility were from
lower socio economic sector of Mexican economy , there were no extra charges
for services such as personal laundry . The Roman catholic nuns who live in the
premises are the volunteers who are excellent mediators if issues arose .Each
nun was in charge of one area of residence. The facility covered 40% of its costs
from residents which was lower than the other two facilities. The remaining
costs were covered by the foundation and surpluses from other facilities.
Because of different socio economic situation RTG residents frequently arrived
with no possessions beyond clothing and personal items while those in other
facilities were in process of downsizing from larger homes to residency
apartments.
Irrespective of the social economic and marketing gaps all the residents in the
three facilities of FBH are all treated with same dignity and quality offered to
those from wealthier sectors.

2. Like any process or tool there are both advantages and disadvantages to a
process. Unfortunately disadvantage are because of inappropriate application.
ADVANTAGES:
 a. Financial resources of FBH serving the needs of Mexican senior citizens
are highly valuable as these help in investing into external opportunities
that arise and helps combating external threats.
b. Its local food products are valuable resource as these are highly
differentiated . This makes the perceived value for these by customers
high.
c. Employees are valuable resource to the foundation as they are highly
trained which leads to productive output for the organisation. The
employees are loyal and the retention levels for the organisation are high.
d. Its patents are a valuable resource as these allow the firm to sell its
products without competitive interference ,this results in greater revenue
for FBH.
e. Distribution network is a valuable resource as it helps in reaching out
more customers .this is because competitors would require a lot of
investment and time to come up with better distribution network than
FBH.

DISADVANTAGE :
a. Cost structure is not a valuable resource because the methods of
production lead to greater loss than that of competition which affects
overall profits of the foundation.
b. Research and development costs more than the benefits it provides in the
form of innovation . therefore it’s a competitive disadvantage.
The Patrons can use the VRIO analysis to analyse the internal strengths and
capabilities of FBH serving the needs of Mexican senior citizens .since each
of the resources are assessed in term of value it brings to the organization is
explained ,and each resource is assessed whether it could be imitated by
competition easily or not is explained and lastly in terms of whether the
organization can use it to an advantage or not is also explained . Analysis
done on the four dimensions value, rareness, imitability, and organization . If
a resource is high on all of these then it brings long term competitive
advantage.

3. The VRIO analysis of FBH serving the needs of Mexican senior citizens will
look at each its internal resources one by one to assess whether these provide
sustained competitive advantage. Analysis also mentions at each stage whether
these resources could be improved to provide a greater competitive advantage.
Lastly ,the resources analysed are summarised as to whether they offer
sustained competitive advantage , temporary competitive advantage
,competitive parity or competitive disadvantage.
VALUABLE:
a. The local food products are a valuable resource as these are highly
differentiated. This makes the perceived value for these by customers
high. These are also valued more than the competition by customers due
to differentiation in these products.
b. Employees are valuable resource which leads to productive output of
organisation. They are loyal and retention levels for organisation are high.
All this translates into greater value for the end consumers of FBH
products.
c. Patents are valuable as they allow the firm to sell its products without
competitive interference. This results in greater revenue for FBH. These
patents also provide FBH with licensing revenue when it licenses these
patents out to other manufacturers.
d. Distribution network helps in reaching out more and more customers.
This ensures greater revenues for FBH. It also ensures that promotion
activities translate sales as the products are easily available.
e. Cost structure is not a valuable resource because it leads to greater costs
than that of competition, which affects overall profits. Therefore cost
structure is a disadvantage.
f. Research and development costs more than the benefits it provides in the
form of innovation. Therefore this also an disadvantage.
RARE:
a. The financial resources of FBH are found to be rare according to VRIO
ANALYSIS of FBH. Strong financial resources are possessed by only few
companies.
b. Local food products are found to be not rare as identified by FBH. These
are easily provided making resulting in competitive parity by FBH.as this
resource is valuable FBH can still use this.
c. Employees well trained is a rare case ,which is not in case of other firms.
d. Patents are not easily available and are not possessed by competitors
e. Distribution possessed by very few firms in the industry
IMITABLE:
a. Financial resources are costly to imitate as identified by FBH. These
resources have been acquired by company through prolonged profits over
the years.
b. The local food products are not that costly to imitate. This can acquired by
competitors as well if they invest a significant amount.
c. The employees are not costly to imitate as identified because other firms
can also train their employees to improve their skills. Can also hire them
by offering better compensation packages, work environment etc. this
makes employees temporary advantage.
d. Patents are difficult to imitate because it is not legally allowed to imitate
a patented product.
e. Distribution network is also very costly to imitate ass competitors have ti
invest significant amount if they are to imitate a similar distribution
system
ORGANISATION:
a. Financial resources of FBH are organised to capture value as per the
analysis. These resources are used to invest in right places therefore this
resources prove to be competitive advantage.
b. The patents of FBH are not well organised as identified by FBH which
means the organisation is not using the patents to full potential. An
unused competitive advantage.
c. The distribution network of FBH is organised ,FBH uses this network to
reach out to its customers by ensuring products are available at all outlets.
From the VRIO analysis it is identified that cost structure and research and
development is a competitive disadvantage, patents unused competitive
advantage employees are temporary advantage, financial and distribution are
sustained competitive advantage.

4a. Mexico’s population makes it highest populated Spanish speaking country.

The country’s population has seen a steady growth in the 20th century . In past
half decade the population has stalled, registering less than a 1% annual
population growth rate. The global population of those aged 60 and more are
estimated about 770 million in 2010 and the number estimated to reach billion
by 2040. With the trends projected through coming decades Mexico would find
itself moving into the third stage of demographic transition marked by rising life
expectancy , falling birth rates, higher urbanization, increased participation of
women in higher education and improved access to contraception. Thus the
Mexican aging population with improving life expectancy together with the
trend toward smaller households and more dual income families, left fewer
young people to tend to the elderly. Challenges for family members dealing with
the health issues that arise with aging pointed to a need for more skilled nursing
care throughout Mexico. However the cultural shift in attitudes toward caring
for the aged was not moving as fast as the demographic changes. A survey
conducted in 2012 showed 72% of Mexicans who did not save for old age or
retirement, when asked the reason 62% replied god will provide the resources
for my retirement and remaining expected their children should supplement
when they are retired.

4b. The demographic trends shaping the US :

a. Millennials are projected to outnumber baby boomers next year.
Millennials are already the largest generation in U.S. labor force , making
up 35% of the total. Although boomers formed majority of labor force
they made up just 25%in 2017, as many older members of this generation
reached retirement age.
In the political arena the number of millennials who are eligible to
vote in the U.S. is approaching that of boomers.
b. One in five Americans live in a multigenerational household. A recorded
number of Americans live in multigenerational households , part of a
broader trend toward more shred living.
c. Half of U.S. adults are married today. The institution of marriage
continues to change.
d. After decades of decline motherhood and family size are ticking up in the
U.S.it has increased from 80 % in 2000 to 86%in 2016
e. Sub Saharan African countries trailed only Syria in growth of emigrant
populations worldwide,2010-2017. There are more then 250 million
migrants worldwide .
f. New refugee arrivals are down in the U.S. and their religious composition
has changed. The number of refugees declined after 2016. As global
refugee the population got increased .
g. International arrivals to U.S. have risen among some groups. New foreign
student enrolment at U.S. colleges has been doubled between 2008 to
2016.there also increase in immigrants to the U.S. naturalization rates are
up among the immigrant groups.