...Mexico: Cultural Analysis This paper is a cultural analysis of the Mexican culture through the lens of the 5-D Model developed by Professor Geert Hofstede. The five dimensions of the model include: Power Distance (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance (UAI), and Long term versus short term orientation. In recent years a sixth dimension named Indulgence versus Restraint has been added. There are no rankings for this dimension as it has only been recently added and researched (Hofstede, 2012). This Model gives one an important tool for gaining insights into given cultures which can improve business opportunities and interactions (International business etiquette, manners and culture, 2012). Power Distance Index (PDI) is the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The issue is how a society handles inequalities. Mexico, ranking 81on the PDI, is a hierarchical society. Regionally, Mexico ranks higher on PDI than the United States (rank 39) and Canada (rank 40), whose ranks indicate that their cultures strive to equalize the distribution of power and demand justification for inequalities of power. Globally, however, countries vary greatly in PDI, (average PDI rank of 60; Clearly Cultural, 2012). One must consider the PDI rank when doing business with a given country in a certain region. For example, Mexican businesses hoping to successfully...
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...the role of a Chief Executive Officer of a transnational organization such as HSBC Holdings seeking to expand its global operations into Mexico of which the market analysis is favorable. In this paper, the subject is to develop an implementation plan by examining best business, cultural, and legal practices. Other considerations include the integration of the organization’s entry mode into the banking industry in Mexico and how HSBC will create and maintain a competitive advantage in Mexico. Expanding into Mexico Mexico ranks number one in terms of economic clout in Latin America and number four as an emerging market. The Mexican economy as prospered during the last few years. Mexico has reduced sharply its government and external debt. The government has helped the economy by imposing monetary and fiscal policy discipline to promote stability and growth in per-capita income. According to Grant Thornton (2011), the Mexican economy has unprecedented stability for the last eight years. Inflation and the peso have been stable. The country has 12 free trade agreements with 43 countries and exports have surged. Mexico also benefits from qualified labor, together with powerful manufacturing and assembly industries. In view of this favorable analysis Mexico will be suitable for HSBC to expand its operations. Mexico is very important location within the emerging markets, (Thomann, 2007). The domestic financial market has developed strongly in terms of...
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...Country Selection Risk Analysis In order to determine whether or not one should introduce a product into a country, they must consider several critical risk factors. We have determined the four critical risk factors for the Swiffer Sweeper are: 1. Economy 2. Political 3. Social 4. Cultural The measurement of economic globalization discusses two factors, the actualeconomic flows and the restrictions of international trade and capital. Actual flows are measured through the percent of GDP which consists of trades, portfolio investments, income payments to foreign nationals, and foreign direct investments.Hidden import barriers are revealed through the restrictions portion of economic globalization. Restrictions include mean tariff rate, percent of current revenue that are taxes on international trade, and capital account restrictions. (Method of Calculation, 2011) This measure is extremely important to any product when entering a new country. It allows one to see the capability of entering a country due to their standards and economic means. This has a great potential to restrict entrance through barriers of entering, and can help one forecast if they have a potential for trade through the actual flows, to see how much they do trade with other countries. Due to all of these significant factors, we have selected 35% as our weight for economic globalization. This is our highest weight, because how well a country performs and interacts with other countries determines the success...
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...S. media giant Star TV lose $500 million trying to deliver TV programming to Asia? Like many companies, it was so dazzled by the foreign market’s immensity that it ignored the difficulties of pioneering new territories. For example, it assumed—wrongly—that Asian viewers wanted English-language programming. How to avoid this fate—and select the right targets for your firm’s global expansion? Look beyond a country’s sales potential (as expressed by national wealth or propensity to consume)—and analyze the probable impact of distance. But don’t focus only on distance’s geographical dimension. Consider three other dimensions as well: cultural factors (religion, race, social norms, language); administrative factors (colony-colonizer links, currencies, trading arrangements); and economic factors (income, distribution-channel quality). The more two countries differ across these dimensions, the riskier the target foreign market. By contrast, similarities along these dimensions suggest great potential. Common currency, for example, boosts trade more than 300%. Also, types of distance affect industries...
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...Country Profile: Mexico Jacey Bennett 20121061 International Business Management MGMT3607 Dr. Dannie Brown Tuesday November 20, 2012 Country Profile: Mexico Mexico is a North American country located south of the United States, north Belize and Guatemala, east of the Gulf of Mexico and west of the North Pacific Ocean. Three main industries in Mexico are mining, manufacturing and tourism. (Encyclopedia of Nations, n.d.) Mexico ranks 14 in the world for its land/water area of 1,964,375 sq km. Natural disasters that may occur in Mexico are earthquakes, volcanos and tsunamis. Mexico’s climate varies from desert to tropical. (CIA, The World Factbook: Mexico, n.d.) The two peninsulas of the country illustrate the changes in the climate from one side of the country to the other. The Baja peninsula is desert like with temperatures reaching 100ºF and above, whereas the Yucatan peninsula is tropical and wet. The Yucatan peninsula contains rainforests and white sand beaches. (World Travel Destinations, Culture and History Guide, n.d.) In recent years, Mexico has rapidly developed its tourism sector, the Yucatan peninsula has grown very quickly. Tourism is the fourth largest source of currency income in the country. (Country Profile: Mexico/economies, n.d) The country’s capital city is Mexico City. The primary language spoken is Spanish but there are an estimated 62 other indigenous languages. Most of the population is Roman Catholic. Mexico is a federal democratic...
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...89 Global Marketing Management 0372 Zara: Fast Fashion Case Analysis GMM Group F: Alexandra Botescu, Ana Sabau, Felicia Postica, Mila Kostadinova, Georgi Krastev, Raisa Nazarova 08-Nov-11 Zara: Fast Fashion Table of Contents Introduction............................................................................................................................................. 1 1. 2. Problem statement.......................................................................................................................... 1 Alternatives ..................................................................................................................................... 1 2.1. 2.2. 2.3. 3. Europe ..................................................................................................................................... 1 North America ......................................................................................................................... 2 Asia .......................................................................................................................................... 2 Issues ............................................................................................................................................... 2 3.1. 3.2. 3.3. 3.4. Cultural distance...................................................................................................................... 2 Administrative distance ..........................
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...Comprehensive Analysis Outline Inthiravanh Amphonephong, Linda Thibodeaux Barras, Rachelle Hollier and Marcella Horne MGT 448 November 9, 2011 Thailund Porter Green Comprehensive Analysis Outline Region Analysis * Regional alliances and economic integration * United States, Mexico, and Canada (North America) * Strengthened significantly through the NAFTA (North American Free Trade Agreement since implemented in 1994 * Mexico is the United States 3rd largest trading partner (Villarreal, 2010) * Physical environment and its affect on trade * Middle class citizens live in fear of kidnapping for ransom * Loss of investor confidence in 2008 * Political stability * President, mayor, police chief to keep the peace in Mexico City * Police not readily trusted by citizens (Grillo, 2008) * Economic conditions * Gross Domestic Product is $875 billion which is 6% of America’s GDP (Grillo, 2008) * Mexico is viewed as a manufacturing for export nation (Villarreal, 2010) * Finance options available * Foreign Direct Investment (FDI) as a result of Mexico’s liberation in the mid-1980’s (Villarreal, 2010) * Social, health, and environmental conditions * Infrastructure is poor, but plans to improve (Grillo, 2008) * Terrorism threats * Drug dealing since 1995 when the economy crashed * $2 billion trade in bodyguards, alarm systems and bulletproof cars (Grillo, 2008) ...
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...S. media giant Star TV lose $500 million trying to deliver TV programming to Asia? Like many companies, it was so dazzled by the foreign market’s immensity that it ignored the difficulties of pioneering new territories. For example, it assumed—wrongly—that Asian viewers wanted English-language programming. How to avoid this fate—and select the right targets for your firm’s global expansion? Look beyond a country’s sales potential (as expressed by national wealth or propensity to consume)—and analyze the probable impact of distance. But don’t focus only on distance’s geographical dimension. Consider three other dimensions as well: cultural factors (religion, race, social norms, language); administrative factors (colony-colonizer links, currencies, trading arrangements); and economic factors (income, distribution-channel quality). The more two countries differ across these dimensions, the riskier the target foreign market. By contrast, similarities along these dimensions suggest great potential. Common currency, for example, boosts trade more than 300%. Also, types of distance affect industries...
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...chosen to do the sector analysis. It is a review and evaluation of the current condition and future prospects of Mexico’s business sectors. Sector analysis helps to investigate how well business sectors are expected to perform as a whole. After I analyse sectors, my colleague Besit will examine the market segmentation, following this my other two colleagues will investigate the competition in this country. Finally, I believe our group work will help UK’s small and medium seized sector businesses to identify business opportunities in Mexico To begin with I downloaded the book Global marketing: a decision-oriented approach (2012) online. In this book, the section part 2 discusses about 4 important topics related to my assessment; The first one is (chapter 5) global marketing research, reading this chapter gave me knowledge about foreign market (micro environmental) and this chapter helped me a lot to learn about the decision-making process which are deciding whether to internationalise, deciding which market to enter, deciding how to enter foreign markets, deciding the global marketing programme and implementing and controlling the global marketing programme. Economic forces, political/legal forces in chapter 6 has taught me to understand how the political/legal environment will affect the attractiveness of a potential foreign market, how to describe the major tariff blocs and so on. Chapter 7, which is socio-cultural, taught me how the socio-cultural environment might affect...
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...Country Risk and Strategic Planning Analysis Paper University of Phoenix MGT/448 Kathryn Hayman December 19, 2011 Team C has decided to conduct a country risk analysis for the country of Mexico. The selected business venture is about laptop computers. When it comes to global business ventures there also comes a great amount of risks. In the following paragraphs is an analysis of the following risks; political, legal, and regulatory risks, exchange and repatriation of funds risks, competitive risk assessment, taxation and double taxation risks, market risks, distribution and supply chain risks, physical and environmental challenges to entering and operating in a target market, social and cultural risks, and cyber or technology risks. A description of how these risks would be managed and a summary of the strategic planning process will be explained. Mexico has a moderate political risk according to AM Bests Country risk report. Mexico ties with large, developed countries that are very strong has help them in this aspect when it comes to their political risk. NAFTA North American Fair Trade Agreement also helps in this respect since it is now one of the largest free trade areas. This agreement was established between the Unites States, Canada, and Mexico and became effective on January 1, 1994. This alliance has brought economic growth and rising standards to the citizens of these three countries. There are many advantages of NAFTA, being that it has created...
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...Comprehensive Analysis Outline Team A: Jaime Borgarin, Julian Contreras, Ibeth Sanchez MGT/448 Global Buisness Strategies May 11, 2012 Professor Quinton Murphy I. Region Analysis A. Regional Alliances and Economic Integration 1. NAFTA 2. United States B. Physical Environment and its Affect on Trade 1. Close Proximity to the U.S. 2. Access to Oceans C. Political Stability 1. Authoritarian Law 2. Democratic Desires D. Economic Conditions 1. Weak Economy 2. Weak Financial Markets E. Finance Options Available 1. Foreign Owned Banks F. Social Health and Environmental Conditions 1. Little Regulation 2. Pollution G. Terrorism Threats 1. Lack of Terrorism 2. High Rate of Violent Crimes 3. Drug Trafficking II. Country Analysis A. Political stability 1. Relatively low geopolitical and domestic political risks in Mexico will increase over the long-term. 2. The war on terrorism has already tightened US border security and immigration rules, opening an important social safety valve for Mexico. 3. Hardening US counter-drug policy in Mexico could heighten already high social tensions. 4. Domestic political risk will increase by continued...
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...Contents Page 1. Executive Summary 4 2. Introduction 5 3. Findings 6 3.1 An Analysis of Mexico 6 3.2 Topshop Market Entry into Mexico 7 3.3 The Target and Positioning Strategies 8 4. The Marketing Mix 9 4. 1 Product 9 4.2 Place & Distribution 10 4.3 Pricing 12 4.4 Promotion 13 5. Conclusion 14 6. Appendices 15 7. Bibliography 19 1. Executive Summary This report is to investigate Topshop, a women’s apparel and accessories retailer based in the United Kingdom and to assess potential market opportunity in Mexico. Areas include, * An analysis of Mexico * Topshop market entry in to Mexico * The targeting and positioning strategies * The Marketing Mix: Product, place & distribution, pricing and promotion. The main finding and recommendations from the analysis of these main areas include, * Mexico has a large, young, growing population * There is a high level of poverty and low level of education * Government policies support FDI * There is a competitive retail environment in Mexico * Mexico’s infrastructure is poor but improving and is high on the political agenda * Topshop has recently sold 25% stake of the Topshop and Topman chain, making them debt free and open to investing in global expansion * There is a growing middle class * The target demographic is middle class females between the ages of 15-34 ...
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...and customer service centers universally but mainly concentrated in Asia. Below is a brief company and employee history to aid with the case study analysis. The first step in identifying the various challenges faced by Tex-Mark included listing the various problems, both explicit (short term) and implicit (long term). Some factors like language barriers have maintained a trend in that there have been more than one occasions of it arising. Other factors included cultural insensitivity and internal factors like Training and Development failure. The second step involved using different methods of analysis like the SWOT (Strength, Weakness, Opportunities and Threats), Human Resource Policies and also a Risk analysis that can affect expatriates on the assignment as well as internally impact the company and its foreign structure alignment. The SWOT helped understand the various aspects of staffing international operations and also understanding the different opportunities Tex-Mark has in relation to its competitors. Risk analysis helps us understand the different personal factors that could affect individual performance. Lastly, the solution phase gives key clues and solution sets based on my personal recommendation and understanding of the case study. These include increasing spending on R&D to better understand host country culture and different...
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...Cross-Cultural Perspectives Michella Amonson ETH/316 January 16, 2014 Mr. Harralson Cross-Cultural Perspectives This paper is an overview and analysis of the ethical perspective and cultural issues that a global organization faces when interacting outside the United States. I will address and identify the cultural and ethical perspective of the global organization named Walmart. I will also analyze ethical and social responsibility issues that WalMart deals with as a result of being a global organization. I will further compare these ethical perspectives with other cultures that do business with Walmart. Walmart’s Ethical Perspective Walmart belief is built on a foundation of integrity , values of honesty, fairness and objectivity. Sam Walton founded Walmart with the strong conviction that a retailer could help people save money and live better. Since, Sam’s passing away, Mike Duke, Chief Executive Officer, President and CEO of Walmart states “culture is how we work together to fulfill that purpose. It's incorporated into every aspect of our business”. He further states “Our beliefs are the foundation of our culture: service to our customers, respect for the individual, and striving for excellence which rest on the foundation of personal integrity and responsibility(p.1).” Strong adherence to these principles has created a unique work culture at Walmart. No matter where you go — to any of our stores and offices in any of our brands around the world —...
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...Entry Analysis | VIH Aviation | | Cassandra BianchiniMichael HaShoaib HasanLeo LamTaylor Smith | 12/1/2011 | EXECUTIVE SUMMARY VIH Aviation has built credibility for its well trained staff, well maintained equipment, safety standards, and technological developments. The performance of the organization has caught the attention of some foreign firms, and additional business ventures will analyzed. China’s second-largest airline has proposed a joint-venture offering shares, profits, cultural know-how for equipment and managerial know-how. Australia’s HNZ group has proposed an acquisition and has offered their staff, equipment, and cultural know-how in exchange for technological expertise and heavy equipment. Finally the sister corporation VIH Cougar in the Gulf of Mexico could be further expanded. The analysis completed was a competitor analysis; Bristow, PHI, and CHC are all industry leaders bringing their own expertise to the table. Bristow is one of the largest companies in the industry and recently started using TCAS2’s (traffic collision avoidance system) for new equipment. PHI dominates the North American oil and gas market, and has the most air time experience of all firms. CHC also has strong ties with oil and gas firms, but after a significant loss they are looking to be acquired by another firm. Overall the helicopter industry is growing due to the new exploration sites for oil and gas, and many opportunities exist. The second part of the analysis was comparing...
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