...Advancing trust in the mexican marketplace Bernardo altamirano rodriguez Found and CEO-BBB Mexico (better business bureau, founded in 1912 in Mexico) 1. Why I built the BBB in Mexico 2. Advances given 3. Development of practices and ideas for the allowance of institutions 4. Identify context of Mexican econmy 5. Business without borders a. Economic = trade liberalization and structural reforms b. Political = impact of the state in the economy and markets i. State participation in economy. c. Social = explaining middle class origins ii. Difference between US origins and Mexican middle class. iii. Different tiers of government, and public work are the two main sources of middle class in Mexico. d. Culture = risk averse and prejudices towards businesses iv. Mexico is more risk averse to investment of money and larger prejudices towards starting businesses. v. Important community belief is that making money is not good. “rich capitalist” ideal. e. Rule of law = different legal systems and property rights vi. Different legal systems (property rights system) and considerations are important because. vii. Napoleonic law 6. Shared heritage of the US and Mexico f. We share historical origins and geographical conditions (10 states) g. Common cultural values however: viii. Different behaviors when crossing the border (both sides) ix. Huge...
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...Transcript of Trying to do business in Mexico, Gringo Style Outline 1. What mistakes did Ted make in his management of SterMexicana? 2. Is Manuel responsible for any of the difficulties presented in the case? 3. What should Ted do now to correct the situation? A short comparison between USA & Mexico culture Comparison (cont) 1. What mistakes ? - No adaptation to cultural differences. Ted just applied US's business style in Mexico For eg,. + Ted refused to recognize Manuel's name with title + Ted refused to join the city tour to know more about the local culture + No intention of ever wearing a tie the whole time in Mexico --> too informal and relaxed to Mexican people + Too rushing and impatient in conducting business 1. What mistakes ? (cont) - Giving too much managing power for Manuel Ted turned over Manuel the day-to-day responsibility into running the plant - Ted's new working hours plan was quite complex and didn't fit the worker's motives - Ted didn't notice about the law differences between 2 countries. 3. What should do next? (cont) - Create a another working plan which can achieve the goal and also more suitable + Observe and find out about the relationships among staffs and their ưworking motives + motive workers better - Need to observe the work closer, do not leave Manuel with too much power and decisions - Learn the language or have a trusted assistance. 2. Is Manuel responsible for any of the difficulties...
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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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...any other US retailer have the same success in Mexico post NAFTA or is Wal-Mart a special case? a.) NAFTA allowed Wal-Mart to operate in more than 15 countries while paying 3% instead of 10% import charges on their products thus enabling Wal-Mart to offer their “everyday low prices”. Walmart became on an even playing field with all the other retail stores, thanks to NAFTA, but Wal-Mart had a competitive strategy and they took full advantage of NAFTA’s implementation of lower tariffs. b.) Wal-Mart is a special case because of their competitive strategy; Founder of Wal-Mart, Sam Walton became involved in a joint venture with Mexico’s leading retail store called Cifra. They Opened Sams Club in 1991 to establish their presence there in Mexico, while the Canadian and American free trade negotiations were happening. c.) Wal-Mart purchased enough shares in the company to take over and expand into Central American starting a retail powerhouse. Nafta opened up the gates and Wal-Mart took full advantage. d.) Purchased woolco stores in Canada as well. Implemented same strategy. 4. What do you think of Wal-Marts strategy in Mexico and Central America and how have bilateral agreements and geographic proximity played a role in their success? What challenges do you think Wal-Mart de Mexico e centramerica will face as it continues to expand in Mexico and Central America? a.) The way Wal-Mart conducts their business internationally in nothing short of amazing. They...
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...the only country that the organization has problems in. They also have problems in South Korea and Japan because even with the low prices and large selection of merchandise they are having a hard time competing with the chain markets in these countries and the shopper habits. Wal-Mart’s experience in Germany, where it lost hundreds of millions of dollars since 1998, has become sort of template for how not to expand into a country (LANDLER, 2006). The sales clerks in German Wal-Mart’s are no longer required to smile at customers because it is often interpreted as flirting. The organization never established a good relationship with labor unions because they didn’t understand that companies and unions are closely connected. The grocery business is a struggle for Wal-Mart in other countries because either they can’t beat the prices of other discount markets or they type of food doesn’t meet the countries culture. For example in the German culture they purchase meat from a...
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...active in business. There is a lot of Western influences in Singapore which gives them the ability to speak English, or also called “Singlish”. Business relationships are really essential in Singapore, therefore it is necessary to network and meet new people in order to build an image of trustworthy and reliability. Relationships are more valued than the companies, and spending personal free time is expected which include for example dining, and playing golf. Singapore has a high level of power distance that can be seen in all the rules they have to follow which are very strict and can result in a heavy fine if someone does not obey the law. The government involves itself in every aspect of society which means there is a lot of control in Singapore, and makes the country one of the cleanest and safest place in the world. Also, the high power distance can be found in the workforce, where the head of the company is the sole decision maker. When planning a meeting it is important to send officials from equal rank, since it can be insulting and damaging to the business relationships. The oldest and highest ranking people are introduced first due to the respect people need to have for seniority. Women are getting more advanced in the workforce and are representing a growing segment which means that Singapore is a feminine country. Most women can be found in the manufacturing, or administrative industry, but there is a growing force of women that are getting into business management...
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...Mexican day laborers can be seen standing on the side of the streets of my neighborhood every morning. I’m not sure why the concentration is higher in my neighborhood than anywhere else I have seen on the island, but there they are, every morning, hoping to get picked up to work that day. Sometimes I wonder how someone is picked over the guy standing next to him. Sometimes I wonder why they stand there at all - when people have 100 men to choose from, the odds of working that day are stacked pretty high. Then I stop and think about what they are going to be asked to do that day in exchange for $50-$100. They’ll be asked to do jobs that their more affluent counterparts feel are “below” them or that they “don’t have time” to do themselves – painting the outside of the house, de-winterizing the back yard for the family barbeque, trimming the hedges and mowing the lawn, cleaning up after a septic tank overflows. It is work that takes physical strength, the willingness to get dirty, to sweat in the hot sun, and to be physically exhausted when you walk in the door at night, and they line up on the side of the road every morning hoping to be picked. In his poem So Mexicans Are Taking Jobs from Americans, Baca writes about how Americans focus on the negative aspects of immigrants, but don’t look at the reality of what they contribute to our society, nor the reality of what the hard-working men and women face at the end of the day. Baca writes the poem in a tone that mocks Americans...
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...Intercultural Professional Communication Protocols Guide By: Kimberly J. Turigliatto Date: 5/16/11 Contents Introduction 3 Description of your Diverse Cultural Group 4 Evaluating Workplace Culture 5 Interaction of your Selected Culture with your Organization 6 Membership and Gender Challenges 7 Intercultural Conflict 8 Verbal and Nonverbal Challenges 9 Building Business Relationships 10 Conclusion 11 Introduction When considering forming a business relationship or when working with people from a Hispanic culture there are many things that one should consider in order to have a successful relationship. Over the last several weeks we have studied many topics to enhance our ability to work with other cultures. In the first topic we chose a culture to learn about that would benefit our organization in learning how to enhance our communication skills in with. My chosen culture was the Hispanic culture as we have many suppliers and co-workers within our facility that we could enhance our working relationships with. In Module two we evaluated our own workplace cultures in and learning if we had a collectivistic or individualistic culture we work within. As we look at module three we begin to focus on just how our chosen culture interacts with our organization. In this area we have learned about the pitfalls that can befall us when we stereo type a group. In module...
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...1) Walmart has already shown the ability to translate its merchandising strategies to other countries successfully. Mexico is a perfect example. This, however, takes time to do. They learned that in order to succeed initially they need to make adjustments to their merchandising strategies to fit the culture of the country they are in. Once they have done so, they can educate consumers about the benefits of the American merchandising culture. Some countries will not be willing to change their culture. But if Walmart continues to approach change the way they have they will continue to find success in countries willing to open up to change. 2) Walmart was successful in Mexico because it adapted to the Mexican culture and over time introduced them to the benefits of the American culture. When they first opened and tried to operate the American way without understanding the Mexican culture they quickly realized that when international businesses are ill-informed about the practices of another culture they are likely to fail. (1) They had to play by the Mexican rules if they wanted to succeed. International businesses need to consider employing local citizens to help them do business in a particular culture. (2) They hired managers who were familiar with the Mexican culture and allowed them to control the merchandising. This was extremely beneficial to their success. They learned that smaller stores within walking distance and changing the things they offered that best...
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...Nova Southeastern University H. Wayne Huizenga School of Business and Entrepreneurship MGT 5012– Twenty First Century Management Practices Date of Submission: March 17, 2013 Title of Assignment: Managing Cultural Diversity Syllabus: MGT 5012- 21st Mgmt Practices 26 Over the years, the workforce has grown to have diverse groups of people working together. Diversity is defined as the differences or dissimilarities among people. These differences can be age, gender, race, ethnicity, religion, sexual orientation, education, experience, and any characteristic used to distinguish between people. (Jones, 2011) To understand the present, a look at the history of diversity in the workplace will be discussed. I will research and discuss the cultural diversity and how managers today have evolved over the years to learn how to handle it. I will discuss certain steps that managers can take to effectively manage the diversity in their workplace. I will look into the business etiquette and protocol of countries like the United States, Mexico, and Japan. I will also look into where these countries fall on Hofstede’s model of national culture. I will also discuss why it’s important for mangers to learn about a culture they are not familiar with when doing business to make sure they don’t offend the other person or company. History of Diversity in the Workplace The workforce slowly changed after World War II as a growing number of minority groups began to speak up and demand...
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...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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...Brian Cash Wal-Mart Case Study International Business How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? When NAFTA was implemented in Mexico, it was an almost immediate success for Wal-Mart. This was because they lowered and abolished the tariffs that Wal-Mart was required to pay prior to the implementation of NAFTA. With the lack of tariff fees, all of the Wal-Marts' in Mexico have been able to offer the “Every Day Low Prices” that we Americans are used to. The Mexican population has other retail options, but none offer the variety of products at the prices that Wal-Mart can offer them. Prior to NAFTA, Wal-Mart was having strong levels of success all over Mexico, but was taking a huge hit as it struggled to incorporate the import costs on the products it sold in the stores. In 1994, NAFTA was implemented in Mexico they were able to do a multitude of things. Firstly, they lowered tariffs from 10 to 3 percent on all American goods travelling from the United States into Mexico. (Daniels, Radebaugh, & Sullivan, 2013) At the same time they were also helping the government by encouraging them to improve its infrastructure. The improvements to subpar roads and the various routes delivery trucks utilized helped connect the logistical issues that plagued Wal-Mart and kept them from branching out into further enterprises within Mexico. The strategy worked and allowed Wal-Mart the ability to transport goods directly to the warehouse and...
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...A large corporation such as Wal-Mart has the ability to generate and demonstrate many unethical behaviors in their pursuit of profit and the scandal uncovered in 2005 displays that in several ways. Wal-Mart’s use of bribery in Mexico, and subsequent denial and “ignorance” of the allegations, presents many ethical issues such as; overconfidence bias, ethical fading, framing, and obedience to authority. In order to prevent these unethical behaviors corporations must have a set of core values and goals that align with legal business practice and they must set up checks along the way in order to prevent harm to the company and the communities that they serve. If companies can do this they can prevent losses both monetary and of public favor. To summarize the issue briefly, in the early 2000’s Wal-Mart was attempting to expand business into Mexico. In order to hurry along business and obtain the highest profits possible, it was discovered, that Wal-Mart had employees bribe many public officials in the Mexico City area. These bribed officials helped to rezone and pass legislation along that would give Wal-Mart the right to build on land that had previously been unavailable. This is known as a "dishonest graft" which is an act of self-enrichment, which in this case exposes the grafter to legal penalties since it is considered in the United States to be a form of bribery. In 2005 some parties involved in the corrupt practice sent an email to company’s higher up officials, which outlined...
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...UNITED STATES AND CANADA AND MEXICO BORDER Border Patrol focus has been detection, apprehension and/or deterrence of terrorists and terrorist weapons (Securing America’s Borders). 2011). The duties and responsibilities of the Border Patrol is one of the most important jobs and it is to detect and prevent the entry of illegal immigrants, terrorists, and smugglers into the United States. The amount of travellers that come through the United States, the trade that the United States engage in, and the number of immigrants entering the United States makes us a target for terrorist attacks from different angles. The Department of Homeland Security was created to deal with and address the threat of international terrorism (Securing America’s Borders). The priority mission of this department is homeland security. The Hart-Rudman Commission had three innovations they were trying to accomplish. The first of which the commission thought the United States needed to push its borders outward, developing what it called a “layered defense” (Alden, 2009, p. 39). The senators thought that the U.S. needs to work more with foreign countries to try to identify threats and/or terrorists before they arrive in the U.S. Secondly, the commission recommended the government need to work with companies, mainly private shipping companies, who ships goods or products to other countries or around the world (Alden, p. 39). This would help not only the government but the companies involved in order...
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...Diana Montes Ms. Hart American Literature 8th of April, 2015 Corruption in the government system and in the 1920’s Mexico is a country that has become known to be very corrupt to its people, and this is mostly because of its Institutional Revolutionary Party, also known as PRI. This political party dominated Mexico’s political institutions for approximately seventy years. Many of its members that have served in Mexico’s government have corrupted Mexico in some way. Some of them have taken money from the country for their own selfish needs and robbed their own people. The main theme in The Great Gatsby is “Excessive wealth and materialism leads to carelessness, corruption, and destruction.” In connection to that, Mexico’s Institutional Revolutionary...
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