...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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...cultural Difference Between Mexico & the united states 1 | CULTURAL DIFFERENCES BETWEEN MEXICO & THE UNITED STATES | | | | | | | | cultural Difference Between Mexico & the united STATES 2 ABC Porcelain Textile firm is expanding, and the need to increase productivity has been overwhelming. However, the cost to produce in the United States has showed a negative impact on the overall profit. In order to reach our goal of providing quality products, management has decided to explore manufacturing efforts in Mexico. In order to accomplish this goal, management has selected a team to go to Mexico and devise a plan of action. This assign has presented itself with many challenges. The assigned team members or I are familiar with the conditions or culture of Mexico. Therefore, extensive training will be needed to make this expansion lucrative and rewarding for the company. Our primary goal for this assignment is to become acquainted with the culture of Mexico by reviewing the culture, values, beliefs, and religion. In addition, to aid with the learning process, we will apply the skills outlined under the scholarly work of Geert Hofstede dimensions. We will them examine cultural dimensions that appear to stumbling blocks for us, and devise a plan of action to overcome the cultural differences. Since this is the first operation of possible expansion, we have determined that it would be feasible to employee a Mexican citizen that is knowledgeable...
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...Main Page From ExecutivePlanet.com Contents 1 Discussion Forums 2 Related Links 3 Guidelines for business etiquette 4 Essential business culture guides for the international traveller Discussion Forums Related Links [1] Contact Executive Planet Guidelines for business etiquette Executive Planet™ provides valuable tips on business etiquette, customs and protocol for doing business worldwide. Our guides are co-authored by experts in international business etiquette, who are available to answer your questions on the discussion board. Essential business culture guides for the international traveler Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Denmark Egypt France Germany Hong Kong India Indonesia Iran Ireland Israel Italy Japan Jordan Malaysia Mexico Netherlands Peru Philippines Poland Portugal Russia Saudi Arabia Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Venezuela Yemen The Executive Planet™ guides to doing business worldwide each contain the following articles: Let's Make a Deal - negotiating tactics, the value of connections, recommended business card style and content, business card protocol, sitting and presenting yourself in meetings, language for brochures and promotional material, pace of...
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...JONAS | Introduction This paper aims to explain and illustrate the cultural relations between two countries, Mexico and Austria. To be more precise, the topic is a business negotiation between two companies, a Mexican car parts producer and an Austrian car parts designer. This paper will highlight all the differences and similarities in culture and conduct of business. Description of Industry In order to provide a credible and realistic scenario I have chosen to work with the automotive industry. In Mexico for example this sector is one of the most important of the economy, representing 3% of the Gross Domestic Product in the year 2011, 17,3% of all manufacturing, and 21,4% of all exports. In total, 84% of all participants are suppliers of goods, whereas 16% assemble cars (Wirtschaftskammer Österreich). As can be seen above, a substantial part of Mexico´s industry focuses on research and development activities, an example is that up to 70% of all components and parts for the new Volkswagen Jetta model are designed in Mexico (CNNExpansion.com). In...
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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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...Table of Contents 1. Introduction a. Economy b. Business practice c. Customs and Protocols 2. Meet and Greet Etiquette 3. German Management Style 4. Negotiations 5. Conclusion Abstract Cultural challenges will occur when taking an American base company to doing business in Germany. Risks will need to be evaluated and overcome relating to the startup of a business in Germany. To identify these risks major differences and incompatibilities between U.S. and Germany need to be identified to guarantee the successful start of a business. Identify and evaluated opposing customs and protocols, cultural differences in business environment and research any trade barriers. Examine Germany’s meeting and greeting etiquette their beliefs and feelings of personal time and how they coincide with business. Understanding Germans culture, manners, economy and business practices will give a clearer vision on what to do and how to present oneself during a business presentation. These will all be discussed in the following pages to give a better picture on the customs and cultures on business etiquette in Germany. Introduction: The largest challenge in starting a business in Germany is to understand the way they do business and what the workforce is like. Being able to adapt to the cultural aspects of doing business in Germany requires understanding who they are and how they work. Germany...
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...Phase 4 IP Key Assignment Dr. Theodore Okendu Colorado Technical University Online MGM316-1304B-05 : International Business Communications Laura Prestridge December 15, 2013 Negotiations and Cross-Cultural Approaches Fast-Food Franchise Project Expansion Orientation Meeting The Fast-food franchise has been cleared for business in all four countries (United Arab Emirates, Israel, Mexico and China). Construction on the restaurants is about to begin with the financing coming from the United Arab Emirates, the materials coming from Mexico and China, the engineering and technology coming from Israel, and the labor being hired locally within the countries by the management team from the United States. All of the key players are coming to headquarters in the United States for a big meeting that will explain the project and let the players get to know each other. At the beginning of the meeting the people seem to be staying with their own groups and not mingling. Cultural phenomenon is taking place in this meeting because each of the cultures has their own behaviors, values, customs, and beliefs that are taught from generation to generation. The other cultural phenomenon in the room is nationality, race, and ethnicity. It is natural that the people are drawn to stay in a group with others of their own culture and be uncomfortable being around different cultures than their own. Intercultural communication is critical in the business world and is mandatory when...
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...Differences in Culture Chapter Outline OPENING CASE: McDonald’s in India INTRODUCTION WHAT IS CULTURE? Values and Norms Culture, Society, and the Nation-State The Determinants of Culture SOCIAL STRUCTURE Individuals and Groups Social Stratification Country Focus: Breaking India’s Caste System RELIGIOUS AND ETHICAL SYSTEMS Christianity Islam Country Focus: Islamic Capitalism in Turkey Hinduism Buddhism Confucianism Management Focus: DMG-Shanghai LANGUAGE Spoken Language Unspoken Language EDUCATION CULTURE AND THE WORKPLACE CULTURAL CHANGE FOCUS ON MANAGERIAL IMPLICATIONS Cross-Cultural Literacy Culture and Competitive Advantage SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Wal-Mart’s Foreign Expansion Learning Objectives 1. Know what is meant by the culture of a society. 2. Identify the forces that lead to differences in social culture. 4. Identify the business and economic implications of differences in culture. 5. Understand how differences in social culture influence values in the workplace. 6. Develop an appreciation for the economic and business implications of cultural change. Chapter Summary This chapter begins by introducing the concept of culture. The determinants of culture are identified, which include religion, political philosophy, economic philosophy, education...
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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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...The United Kingdom Tables of Content 1. The United Kingdom’s Background 2. Culture of the United Kingdom 3. Language, social class, sports, stereotypes, doing business in the UK 4. 5 Main tourist destinations 5. Recent News 6. Economy of the United Kingdom (vs. the United States) 7. Politics and Business in the United Kingdom 8. Membership to World Trade Organization 9. Free Trade Agreements with the United States 10. Business Indicators and Country Rank 11. Problems and Corruption in the United Kingdom 12. Important Companies in the United Kingdom 13. References & Bibliography The United Kingdom’s Background The United Kingdom (also known as Britain) is a sovereign state located to the northwest of France, and spans 94,060 square miles. Its climate is mild, and rainfall is prevalent between September and January, with more than half of the days being overcast. The UK is made up of the providence of Northern Ireland, as well as Scotland, England, and Wales (together considered a country); it entered the European Union in 1973. Its 64.1 million citizens primarily speak English, however there a few other regionally recognized languages spoken, including Scots, Scottish Gaelic, Welsh, Irish, and Cornish. The UK’s main cities are London (capital of the UK), Edinburgh (capital of Scotland), Cardiff (capital of Wales), Belfast (capital of Northern Ireland)...
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...TABLE OF CONTENTS PHYSICAL FORCES …………………………………………………........……... p. 3 ECONOMIC & SOCIOECONOMIC FORCES ...………………………...........… p. 4 SOCIOCULTURAL FORCES …………………………………………........…..... p. 5 COMPETITIVE & DISTRIBUTIVE FORCES …………………………...........… p. 6 MARKETING & MANAGEMENT ASSESSMENT …………………….........… p. 8 APPENDIX ……………………………………………………………........…….. p.9-11 BIBLIOGRAPHY …………………………………………………………............ p. 12 PHYSICAL FORCES Location: Next door neighbor to the huge market that will be created under the North American Free Trade Agreement: Mexico, United States, Canada (with 360 million consumers), and member of the Central American market (with 30 million consumers). This geographic proximity substantially lowers time and costs of communications and transportation and makes a "quick response " framework possible. Political Relationship: Congressional, municipal, and first-round presidential elections took place on September 9, 2007. The final round of presidential elections took place on November 4, 2007. Inauguration for the new president and the new Congress took place on January 14, 2008. The next presidential elections are scheduled for September 2011. Common and violent crime, aggravated by a legacy of violence and vigilante justice, presents a serious challenge. Impunity remained a major problem, primarily because democratic institutions, including those responsible for the administration of justice, have developed only a limited capacity...
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...SUMMARY You may find certain aspects of Brazilian culture to be strange and quite different from what you are used to in Canada. One of the major differences is that Brazil is a collectivistic culture as measured on Hofstede’s Individualism Index, in contrast to Canada’s individualistic culture (Hofstede, 2014). Brazil’s collectivist nature will have many impacts on your daily interactions, including the Brazilian importance of family, which will often be place above work priorities (Training, 2012). Brazil is also different in its communication style, which tends to be more informal and indirect than Canada’s formal and direct style. Brazil is also considered a high-context culture, therefore it is important to pay attention to what is said, how it is said, and what is not said (Suderman, 2008). Another major aspect of Brazilian culture is the importance of building relationships before commencing business. Brazilians expect to get to know their business contacts through multiple meetings, in order to establish trust, and hopefully a friendship (DiPaolo, 2006). This process may take some time as it illustrates Brazil’s Polychronic orientation, which is more relaxed (slower) in nature and where the prevailing attitude is that “things will get done in their own time” (Suderman, 2008). Brazil is also very comfortable with inequality as evidenced by their high score on Hofstede’s Power Distance Index (Hofstede, 2014). As a manager in Brazil you will be expected to take absolute...
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...Global vs. International Business We are trying to expand our bicycle business to three new countries. Right now we are domestic in the United States, but we hope that will change in the vast future. We are first faced with the question of whether we are global or international. Obviously the goal for the bicycle company is to be global since we would expand our company in having a physical site overseas. In order to have a physical presence in other countries we may have to buy out a local, favored brand name. So we have to keep that in mind for the future of our business. Base of the Pyramid In order to sell a more expensive product, such as a bicycle, we need to make sure we aren't selling to a civilization that's on the base of the pyramid (earning $2000 or less per year). We would like to sell in an area where market participants earn in the second to top tier ranges in the pyramid. According to Trade Economics (2015), the per capita GDP's for our countries sit at: Japan- $37,595.18, Costa Rica- $5,962.38, and Pakistan- $818.87. Out of the three, the best country to go sell to is Japan if we are solely basing this on affordability. Costa Rica is in the second tier as preferred, but cutting it close to the base of the pyramid. Pakistan may not necessarily be able to afford our product as they sit at the base. Political Systems Japan is a constitutional monarchy which allows one branch of command to limit and balance the power of the monarch. Costa Rica is a democracy...
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...The Differences in Health Traditions between Cultures Each individual has an exclusively cultural heritage attachment that is comprised of a lot of different customs and values. It is almost impossible for anyone or group of people to live everyday by not practicing according to their beliefs or cultural background. Being born to a person depending on whom they are or where they live means so much in some cultures. For example, I was born into a family where my parents were both educated and good practicing Catholics. This automatically puts me in a middle class family or made my statues a little higher than so many people whose parents are not educated. I consider myself fortunate and that is mostly why I am always humble in life. I was born in the eastern part of Nigeria; the westerners and the northerners make up the rest of the population. Nigeria is the largest country in West Africa; most of the people are farmers and could not afford to go to college and at least get a formal education. In my culture, not many people could afford to go to a hospital for health reasons. Instead, more people rely heavily on herbal medicine, which is part of our tradition. Some people use modern medicine depending on what their families could afford. Growing up in the mist of both traditions, I have learned to practice not only one but two of them respectively. I believe that one’s heritage or culture is a practice no one can afford to forget because it is embedded into our lives. Living...
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...Reason for choosing United States of America The United States is home to one of the world most complex and competitive economy. As one of the largest and richest consumer markets the chances are high there is a market for your product or service in the US. From the below, the table list shows economy overview of United States. | | | | | | | | Region – OECD high income | Doing business 2013 rank 4 | Doing business 2013 rank4 | Changes in rank0 | Income Category- High income | | | | Population- 311,591,917 | | | | | | | Doing business 2013 DTF**(% Points) 84.3 | Doing business 2012 DFT**(% Points) 85.0 | Improvement in DFT**(%Points)-0.7 | GNI Per Capita(US$) -48,450 | | | | Business cultural of United States of America * Value and Attitudes * Values American business culture is also characterized by a heavy emphasis on individual initiative, independent, entrepreneurship and achievement. Personal competence, professionalism and accountability for individual performance are highly valued. They value equality, fairness and privacy. * Attitudes Americans expect you to be positive about yourself, your products, and your capabilities. Americans expect all business interactions to be polite and professional. Arrive on time for meetings since time and punctuality are so important to Americans. People are extremely punctual and view it as a sign of disrespect for someone to be...
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