...Institutional, and Cultural Context of Colombia Michael N. Yuede Missouri State University Abstract This paper studies the Colombian culture and how it affects business relations. First, the Colombian country is explored, examining the geographical location and environment, demographics, economy, religion, and the historical, legal and ethical, and social context. Geert Hofstede’s, Fons Trompenaars’, and GLOBE’s models of national culture infer ways to behave in any given culture, and in this case, Colombia. Differences can be seen between the United States’ and Colombia’s culture after exploring the models, suggesting ways to adapt to the new culture and act appropriately in a business environment. After studying the models, the cultural descriptions and aspects, including Colombia’s collectivistic and high power distance nature, give future managers and expatriates the implications necessary to become legitimized in the eyes of other businesses and the government. Additionally, the implications help predict employee behaviors and motivators, as well as human resource management policies that should be implemented into the business. However, in order to fully understand the Colombian culture, an individual must live in that country for a period of time to experience the culture first hand. Environmental, Institutional, and Cultural Context of Colombia In order to better understand how to interact in a business environment in Colombia, it is important to know about the...
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...each day. As a result of this success, the McDonald’s firm is looking to continue their expansion into the global marketplace. After consulting with experts, McDonald’s has agreed to seek their expansion into Colombia, South America. Their goal is to enter the Colombian marketplace and offer the McDonald’s experience to the Colombian people and market. Many countries already enjoy the McDonald’s experience and famous food products that are eventually adopted as staples in their fast food runs- no matter the country. McDonald’s has been successful in entering foreign markets and adapting their business to local markets and have the local population call McDonald’s their own versus an American product that has come to their country. This is one of the keys to the success that McDonald’s has mastered. Naturally, they have the resources, monetary and information power to enter foreign markets, however there are some attributes that Colombia has that must be taken in to consideration. Columbia is considered an emerging market in the world’s view and the best strategy for McDonald’s to enter their marketplace should be a intelligently strategic one. II. Columbia’s attributes to consider During the 16th century, Bogota was named the capital of Colombia; it was also during the late 1700’s that protests against the Spanish inhabitants started to occur. Dissatisfaction against rising taxes and slavery prompted the Colombian population to wage battles against...
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...ABC The Pacific Alliance 1 The Pacific Alliance – Deep integration for prosperity The Pacific Alliance is a mechanism for regional integration formed by Chile, Colombia, Mexico and Peru, in April 2011. It acquired legal and formal existence on 6 June 2012, with the signature of the Framework Agreement. The process seeks to create attractive markets among its member countries and enhance their competitiveness in the wider world. 2 Member Countries T h e Pa c i f i c A l l i a n c e Mexico Colombia Peru Chile 3 Finland United Kingdom Netherlands Germany France Switzerland Italy Canada Turkey People's Republic of China Japan Republic of Korea United States of America Honduras Guatemala El Salvador Dominican Republic Costa Rica Panama Spain Portugal Morocco Israel India Singapore Ecuador Australia Paraguay Uruguay New Zealand Member-Candidate countries The Pacific Alliance Observer Countries T h e Pa c i f i c A l l i a n c e Costa Rica Panama 4 Objectives of the Pacific Alliance: To build, through participation and consensus, an area of deep integration that will move progressively forward towards the free circulation of goods, services, capital and persons. To dynamize growth, development and competitiveness in the economies of the Parties, in order to achieve greater welfare, overcome socioeconomic disparities and secure social inclusion in their societies. To become a platform for political articulation, economic and commercial integration, and projection...
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...Executive Summary: Starbucks Corporation (NASDAQ: SBUX) is the world’s largest coffee producer and retailer, headquartered in Seattle, Washington. Starbucks offers a wide range of products besides coffee, ranging from pastries, snacks, and other hot and cold beverages. It also specializes in selling coffee products at groceries and retail stores. As a market entry proposal, the company aims to establish operations in one of the three following countries: Trinidad and Tobago, Dominican Republic, and Colombia, as it hopes to gain a strong ground on the booming coffee industry. Despite the close proximity of Starbucks to Central and Latin America, the company has been relatively poor in establishing markets in these regions. The first store was opened in Mexico City in 2002, followed by Lima, Peru in 2003. This region seems to be the perfect fit for Starbucks to expand due to the expanding Coffee production industry. The Colombian Coffee Bean offered by Starbucks is imported from Colombia and is one of the most successful products. Apart from the coffee industry, tourism holds tremendous promise for Starbucks to expand in this region, as approximately 20% of passenger traffic to the Caribbean region comes from the United States. These positive signs show great promise for Starbucks to expand its global picture and continue to remain as the world’s best coffee retailer. Company Overview: Time Out Magazine of San Francisco acknowledges the founders of Starbucks: Jerry Baldwin, Zev Seigl...
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...editor for Academia Press (college-level business textbook publisher) has arrived from New York, USA to Bogota, Colombia. He was intended to combine leisure and business. He met his old college friend Rodrigo Cardozo and spent some good time his family. But his primary aim was to conduct a series of meetings with directors of business schools at various Bogota Universities and establish business contacts in the Colombian market, as his company has seen future opportunities in Latin America. The deal was important not only to his company, but for him also, as it was a good possibility to get a promotion. He scheduled the meeting and went for the first one on Tuesday. He was supposed to meet 3 professors at 11:00, but two of them arrived half an hour later. Then they offered Jim to go for a lunch, during that time they were not discussing the business matters at all, all the conversations were about the dishes and the sights of Bogota, the professors seem to be simply not interested in Jim’s offerings. The lunch finished at 2:30, but Jim hasn’t accomplished his goal at all, he was didn’t understand what went wrong and very upset about it. When he came to his friend’s home later, he met friend’s father Dario, who was a businessman and had conducted business with people from different countries. He told about the meeting and asked for the advice. Dario reminded that Jim is Bogota now, not in the USA and the way of negotiations and doing business is simply different. First of all it is...
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...Global Business Plan Week 7-Final Draft Subway in Colombia 04/15/2012 Table of Contents Content Page Number Table of Contents 2 Executive Summary 3 Module 1: Identifying Global Opportunities 4 Module 2: Analyzing International Competitors 7 Module 3: Assessing the Economic/Geographic Environment 10 Module 4: Assessing the Sociocultural Environment 13 Module 5: Assessing the Political Legal Environment 15 Module 6: Selecting a Global Company Structure 18 Module 7: Financing Sources for Global Business Operations 22 Module 8: Creating a Global MIS (Management Information System) 25 Module 9: Identifying Human Resources for Global Business Activities 27 Module 10: Managing International Financial and Business Risks 29 Module 11: Product Target Market Planning for Foreign Markets 31 Module 12: Designing a Global Distribution Strategy 32 Module 13: Planning a Global Promotion Strategy 36 Module 14: Selecting an International Pricing Strategy 38 Module 15: Determining Organizational Financial Results 41 Module 16: Measuring International Business Success 42 Conclusion 43 Bibliography EXECUTIVE SUMMARY (Created by John Isles) During the course of this business plan, many of the benefits of opening up a Subway restaurant in Colombia will be illustrated. Among the first items presented will be an analysis of startup costs. After a brief summary of the initial costs required, these...
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...ANALISIS DE LA COMPETITIVIDAD EN COLOMBIA FRENTE A LATINOAMERICA Actualmente la globalización de los mercados es un factor determinante para impulsar los avances en materia económica, industrial y política tanto en países desarrollados como para economías emergentes. En el caso de Colombia, durante las últimas dos décadas, los gobiernos han puesto sus miras a fortalecer su política de apertura económica y la llegada de capital extranjero, con el fin de incluirlos como pieza fundamental para el desarrollo de los sectores productivos que más adelante se convertirían en los principales motores de la economía nacional. Según la clasificación anual de 2015 publicada por el Instituto Internacional para el Desarrollo de la Gestión, indica que gracias a la evolución que ha tenido Colombia a nivel empresarial y económico, el país se ubica como el tercer más competitivo de América Latina, después de Chile y México. Es de anotar, que dicho estudio contempla una serie de factores de competitividad como el rendimiento económico, la eficiencia de los gobiernos y la calidad en infraestructura, entre otros, que permiten establecer que tan sólidas y productivas son las economías para hacerle frente a lo que anteriormente llamamos globalización. Por otro lado, según el informe de Doing Business realizado por el Banco mundial, publicado a finales del año 2015, revelo que Colombia pasó del lugar 52 al 54 entre los países con mayor facilidad para hacer negocios. Por su parte, México se cataloga...
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...FTA BETWEEN COLOMBIA AND USA, A GOOD ALTERNATIVE TO OPEN OUR COUNTRY TO AN INTERNATIONAL MARKET. Many people think that the Free trade agreement between Colombia and United States is not a good option to our producers because we are not ready to open our market, but we are in a globalized world and if Colombia hadn´t approved this agreement, we would have been producing in the same way without thinking to improve our methods and how to be more competitive. This agreement was negotiated in 2006 and on May of this year, the agreement came into force. An FTA “is a trade agreement between certain countries granting their members an exclusive favor and is a common type of regional trade agreements.” This sort of agreement is very important for countries to attract foreign investment and to improve the economic growth. Even though it is not easy for developing countries as Colombia, these regional trade agreements are expanding now a days, and they have more advantages than disadvantages for this countries. Advantages that allow Colombia to grow In the first place, An FTA does not required constant changes, which makes it a stable and predictable instrument with clear rules to both countries involved in the agreement. As well as this, when Colombia accepted this negotiation, a lot of studies about positive changes because of the agreement were made, and the results were a possible economic growth, increasing exports and creation of both qualified and no qualified employment...
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...Relations November 30, 2013 Colombia and its government Colombia is a small country located in South America. This country has suffered with different problems related to education, economy, a civil war and drug trafficking for many years. It is better now than it has been in the past but the problems are still there. The government of a country is its nucleus, the only way in order to achieve stability. If the country has a good government that knows how to manage it they would reach the “well-being” of its people. A good government in Colombia is the only thing that can make their problems disappear. The government had enhanced a lot over the years but they still need to improve very much. Education should be looked as one of the most important things in everyone’s eyes. The kids are the future of the country. They can be presidents, part of the government, doctors, lawyers, etc. In their hands is the future and that’s why they need to know what they are doing. Beginning with the fact that Colombia has a democratic government, it means that the civilians get to choose their president. The person that would represent them and would make important choices for the country. In order to make a great vote education is completely necessary. The people that are not educated vote because the things that they gave them when they were on campaign or because they think that one candidate is handsome than the other. Jalil 2 The public education in Colombia was really bad. The teachers...
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...1997 II. Point of View – Fernando Aguirre, CEO III. Statement of the Problem Symptom: Chiquita Brands International was forced to make protection payments to paramilitary groups in Colombia to keep their workers safe from the group’s violence, which later were found illegal under U.S law. Problem: Chiquita workers are saved but the rest of the country is endangered. IV. Objectives 1. To rebuild the company’s image 2. To protect their employee’s lives and at the same time, to not harm the citizens of Colombia by providing funds for terrorism acts V. Areas of Consideration VI. Outline Alternative Courses of Action (ACA) * Exit the country and relocate their operations from Colombia to a nearby country with similar weather but less of a terrorism ridden culture. * Stay in Latin America but fix their public image through sustainable employment and environmental practices in order rebuild a positive image of the brand. * Draw out from Latin America and increase their market share by focusing in other products. VII. Recommendation Since they’ve already sold their Colombian farms, I think it’s time for them to leave Colombia and rebuild their business in another country that is free from terrorism acts that also offer similar weather conditions as Colombia. They should now pay attention on its Marketing Campaign in order to rebuild a positive image of the brand; Focusing on ethical treatment of workers, sustainable environmental practices, providing...
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...considered the first step to expand in the international market, followed by demographic. Demographic segmentation is dividing markets into different groups according to their age distribution, gender, the family life cycle, the income level of that certain country and the ethnicity or religion of the market. * Colombia is a country situated in the northwest of South America * Colombia has two seasons: summer and winter * Age structure * 0-14 years: 25.3% (male 5,998,645/female 5,720,229) * 15-24 years: 18% (male 4,243,251/female 4,099,299) * 25-54 years: 41.6% (male 9,515,723/female 9,720,894) * 55-64 years: 8.3% (male 1,796,050/female 2,051,948) * 65 years and over: 6.7% (male 1,293,258/female 1,806,000) (2014 est.) * Has a population of 45,745,783 b. Economic environment: Income levels, unemployment, infrastructure development, ease of doing business, etc. Regarding the economic factors we choosed to analyze some indicators, such as: GDP and its growth, per capita index, laws on import of goods and services, taxation system (and eventual tax incentives), labor force availability, and easy of doing business index. This analyses will provide a broad overview of the markets the company wants to enter and will allow the managers to take better decision on its expansion, also the economic factors help the company to get a certain idea about how the market is growing up and the innovation that the different companies...
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...International Business Administration Cultural Diversity Professor: Hans Hahn Summer Semester 2014 Cultural Dimensions of Geert Hofstede: Analysis of Colombia 10.06.2014 Soraya A. Suarez I. Register Number: 969800 Darmstädter Landstr. 64 60598 Frankfurt Tel: 0176- 708 59654 E-mail: sorayasuarez@gmail.com Cultural Dimensions of Geert Hofstede: Analysis of Colombia 2 Content 1. Introduction............................................2 2. Culture.................................................3 3. Colombia................................................5 4. Cultural Models and Cultural Dimensions.................9 4.1 Geert Hofstede's Cultural Dimensions.................9 4.1.1. Power Distance Index...........................10 4.1.2. Uncertainty Avoidance..........................12 4.1.3. Individualism vs. Collectivism.................13 4.1.4. Masculinity vs. Femininity.....................15 4.1.5. Long vs. Short-term Orientation................16 4.1.6. Indulgence vs. Restraint.......................17 5. Conclusion.............................................20 6. References.............................................21 Table of Figures Colombia Facts & Figures...................................6 Colombia Location, Flag and Coat of Arms...................8 Colombian Population According to Ethnocultural Identity..11 Colombian Culture through the 6-D Model...................13 Cultural Dimensions of Geert Hofstede: Analysis of Colombia 3 1. Introduction...
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...competitive price companies within the travel agencies. After seeing our companies wrong, we believe that we are prepared to expand into South America this upcoming year. With that being said and much research, our company can only expand into one country. Travel Express has consider expanding into Colombia and Panama. We believe that these two countries have a lot to offer our clients, and also countries where not that many traveling agencies have expanded. The three major factors that we researched in order to come with this conclusion are their economy and government, climate and seasons, tourism. BENEFITS AND RISKS OF EXPANSION IN COLOMBIA OR PANAMA Economy and Government Colombia’s Economy and Government Colombia is currently a democratic country, with a central government and separate powers. Just like in the United States, Colombia has Executive, Legislative, and Judiciary branches (“About Colombia,” 2014). Their current currency is Colombian’s pesos; one American dollar equals a bit over two Colombian pesos. With the Colombia peso being so weak compare to the American dollar; tourist are able to get more for their money. For example, they can vacation longer in Colombia, visit more tourist areas, buy higher quality...
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...the company in turmoil with their lack of leadership and cavalier approach to the market with little regard to international marketing rules. Under Investor and Daft, the company was involved in various issues such as, competition, water pollution & contamination; allegations of racial discrimination; misrepresentations of market tests; manipulation of earnings by inflating numbers; distribution & distributors; labor union conflicts; and health related issues of their product. Coca-Cola’s most significant Issues/Dilemmas – Union Relations People - the most valuable asset and resource of a company (Fulmer, 2014). In 1989, Coca-Cola was accused for the murder of 8 unionized workers employed at the Coca-Cola bottling plants in Colombia and Guatemala; allegedly forced 48 unionized workers into hiding and made death threats to a total of 65 other employees. The accusations against Coca-Cola were believed, by many, were the results of bullying union workers. The local union sought compensations for the families of the slain and displaced workers alleging the Company and its local bottlers were complicit in the intimidation and the deaths of the unionized...
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...University of Caloocan City Camarin Campus A business case analysis entitled “Chiquita: Doomed if we do, doomed if we don’t” Shane Marie Diesta Christian Balagtas Eric Jay Etoc II. Recommendation Statement Our team recommends Chiquita International to withdraw their segment in Columbia should the threat of the AUC puts the life of the employees and the compliance with the government at stake. III. Background Information Chiquita Brands International, Inc. (“Chiquita”) ,along with its subsidiaries, is an international marketer and distributor of bananas and pineapples sold under the Chiquita and other brand names in 70 countries, and packaged salads sold under the Fresh Express and other brand names primarily in the United States. With over twenty six thousand employees across six continents, the banana company faced one of its red hot scandals, right in Columbia. Chiquita admitted that it had been paying for years to the violent, right-wing terrorist organization United Self-Defense Forces of Colombia – an English translation of the Spanish name of the group, "Autodefensas Unidas de Colombia" (commonly known as and referred to hereinafter as the "AUC") in exchange of AUC not giving harm to Chiquita’s employees. The AUC had been designated by the U.S. government as a Foreign Terrorist Organization ("FTO") on Sept. 10, 2001, and these designations made it a federal crime for Chiquita, as a U.S. corporation, to provide money to the AUC. In April 2003, Chiquita...
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