Question

What are some cultural habits and differences that are likely to impact doing business and marketing a new product in Mexico?

a) What are the major religions, ethnic makeup and language of Mexico?

b) What are the differences in beliefs, values, customs and behaviors and role of the family in Mexico?

c) What are unique business customs, etiquette and practices one should be aware of when doing business in Mexico?

d) Describe Mexico using Hofstede's model of cultural dimension

Answer 1

Before conducting business in other countries, one should collect the information about that country. It may be cultural practices, ethics, values, strategies etc followed in that country.

BUSINESS IN MEXICO

Carrying out business will bring you potential gains and at the same time potential disaster also, if you are not aware of Mexican business culture. Conducting business abroad requires knowledge not only of that country's rules, regulations, policies and laws, but also of its corporate business culture and etiquette. Thus the right sales pitch is not enough to persuade Mexican businesses to buy what you are selling.

RELIGION, ETHICS, LANGUAGE

Looking at the religion, Mexico does not have an official religion. However Roman Catholicism is the dominant religion in Mexico, representing about over 80% of the total population.

When it comes to business, Mexican people do business with whom they like at a personal level, so developing solid relationship is very important. To develop these relationship you should know how to speak and behave properly when interacting with Mexican people.

Language - Most of Mexican people speak English. But it is essential for you to learn some basic phrases in Spanish such as "por favor" which means please, "gracias" which means thank you, "adios" which means goodbye and "disculpe" which means excuse me.

BEHAVIOR, CULTURE, ROLE OF FAMILIES

The culture of Mexican families generally has a very strong foundation in unity. As with any culture, in Mexico, family life is as much individualistic as it is communal. According to their culture a father or grandfather would be the head of the family/ household. He would be in charge of its organization, proper functioning and spiritual rituals. The men in the family carry the family name and lineage.

BUSINESS CUSTOM AND ETIQUETTE

1) Being punctual and on time for any meetings

2) Business are not done over phone or email. It is only done in person.

3) Meetings are usually started after a small general talk. It may be about family, weather etc

4) It is expected to be gracious and polite. Being direct and to the point will be considered as rude or aggressive.

5) The drinks offered during the meeting, usually coffee, should not be refused.

6) Negotiation tend to move slowly because relationship comes first.

7) Big decisions are made by the top executives, and they expect to do business with same level of executives and not with the low level representative. Here hierarchy matters.

8) It is also important to have a good appearance. Appearance matters - it may be your clothes/ attire, hotel accommodation, jewels etc.

HOFSTEDE MODEL OF CULTURAL DIMENSION

Hofstede cultural dimensions model is developed by Geert Hofstede. It is a framework for cross culture communication.

In Mexico :-

1) Power distance - in a society, all individuals are not equal. It expresses the attitude of the culture towards the inequalities amongst us. Thus this dimension deals with this.

2) Uncertainty avoidance - society deals with the fact that the future can never be know : should we try to control the future or just let it happen ? This confusion brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. These are reflected in the score on uncertain avoidance.

3) Long term orientation - This is the dimension which describes how every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies gives priority to these two essential goals differently.

4) Individualism - This dimension has addressed a fundamental issue : the degree of interdependence a society maintains among its members. In individualist society people are supposed to look after themselves and their direct family only.