The Cultural Aspects of doing business in Mexico

The Cultural Aspects of Doing Business in Mexico Abstract The contemporary business world is rapidly changing. Technology has transformed a number of issues appertaining to business. First, it has made the world a global village. Suppliers and consumers are able to exchange information within split of seconds. In addition, it has speeded up globalization and liberalization of economies through the exchange of market information.

With many economies opening up to investors, companies are exposed to new cultures. Culture varies between economies. The paper seeks to unearth this variation using Mexico as a case in point. Mexico is a unique Latin America economy with unique people and cultures. For businesses to thrive, they need to be well versed with issues related to business etiquette, private space, business hospitality, and how to conduct negotiations with Mexicans. This paper looks to address the aforementioned issues in detail.

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BUSINESS ETHICS

2 The Cultural Aspects of Doing Business in Mexico

Introduction Globalization has transformed firms’ perspective of culture and ethics. Prior to the 21st century, most businesses viewed culture in a narrow angle i.e. in relation to managerial alignment of a company to postulated rules and legislations. However, that has changed considerably and different players view culture differently. With the fast changing world, cultural aspects are receiving a lot of attention from business players who are keen to satisfy their customers by advancing a positive gesture and respect towards their coveted aspects. Companies are established with the sole aim of making profits. To realize these profits, firms need to attract and retain customers. To realize that, companies needs to emphasize ethical issues by enhancing their business operations. It is apparent that companies in the 21st century are becoming more responsible and accountable for their actions as the public is acting as their judge. This is so because of increased calls for companies to upheld good ethical and cultural standards by engaging in sound business practices. Engaging with international markets exposes businesses and firms to a number of cultural aspects and etiquette. The aforementioned varies from one country to another. Although these aspects might be mild, businesses need to be sensitive and not rubbish them. Mexico has not been left behind when it comes to cultural aspects. For businesses to survive in Mexico, they should be well versed with the cultures propagated by the populace.

To thrive as an establishment, being versed with different cultures in a country enhances relationships with the local folk and foster profitability.

Businesses seeking to capture the Mexican market need to be sensitive to the cultural aspects of the society and not to only bank on their proposals. Conducting business in Mexico is unique and different from conducting business in any other part of the world. This is because

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most issue i.e. from the management cultures to the society values are factored in during operations. In Mexico, business etiquette is the nerve of survival for any business. The manners of conducting business operations i.e. business negotiations are highly valued. For a company to thrive well in business it needs to be well versed with the demands of the society and its business culture ought to reflect the same. To be successful in operations, firms keen in investing in Mexico need to be well versed with a number of issues.

Business Culture and etiquette Business etiquette is highly valued in Mexico. Firms seeking to win the hearts of Mexican people need to polish their manners and conduct. A sound business culture implies that a business is able to develop a fruitful relationship between its staff and the customers. A number of business cultures that touch on humanity and those that meet varied social settings. However, it is paramount to position considerate nature of businesses as a primary etiquette. This is because Mexican population values the trait highly. In envisaging this culture, Mexicans shake hands every time at the beginning of a transaction and at the end i.e. when departing. The gesture is applicable to all individuals i.e. employees, shareholders and customers. Successful businesses in Mexico have embraced this culture to remain relevant in their respective industries. According to Becker (2004), Mexico is a unique country in that the locals for their operations and enhanced relationships embrace successful persons with the public. The aforementioned intimate relationship implies that a lot of weight has to be put in enhancing business etiquette.

Private Space Personal space is a cherished factor by business employees or public at large. However, that is curtailed in Mexico. Established Mexican businesses observe that personal space is dented during interactions with clients or the general public in that there is little or no personal space

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when people are engaging in discussions or generally interacting. Moreover, psychological experts observe that Mexicans are unique people with a lot of cunning and tactical behavior. This implies that any person seeking to keep is personal space is disadvantaged as the gesture can be interpreted to mean unfriendliness. This interpretation has grave impact on business as customers will tend to disassociate themselves from such individuals (Gus & Thurmon, 2002).

Meeting, Greetings and Negotiations Mexicans are arguably unique people to do deal with in doing business. Their uniqueness is reflected by their choosy nature. They tend to carry out businesses with the people they have an experience with or have initially engaged in some business dealings. This implies that visitors in the field are disadvantaged in that they are not able to appease the folk who are keen to deal with well-known individuals. Therefore, to thrive in such business environments, rapport is of utmost important. This implies that people have to be introduced by close colleagues or networks to be able to penetrate the market. Mexicans value mutual relationship in interactions, the headache can be solved by basic courtesy. New entrants into Mexican market need to engage contacts to help them introduce themselves to potential business clients before setting up meetings. Understanding how Mexicans deal with negotiations saves businesses a lot of hustle and time. Mexicans are naturally ‘slow’ people to handle especially when it comes to business negotiations. However, not all Mexicans are such slow; they are only keen on details of a business deal. Handling Mexicans and convincing them to engage in a deal might take quite some time. A business or agent seeking to seal a deal fast may be disadvantaged. According to Mexicans, urgency may be interpreted to mean weakness in the part of a company or agent. This implies that a product may be considered illegitimate simply because a Mexican is being rushed into signing a deal. Gradually build up towards serious business discussion is paramount. Initial

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stages are good for a rapport. That is the time when general matters are discussed. Rapport will enhance the relationship between the two parties engaging in deal. At the time of dealing with real issues, it is important to disseminate enough information as possible. This will help the Mexicans evaluate and analyze a given proposal in depth. In addition, capturing that information in writing will help them digest the details after the meetings. Mexicans are known to be cunning and a deal cannot be considered sealed until they append their signature. Prior to that, one needs to stay firm (Gus & Thurmon, 2002).

Business Hospitality and Entertainment Business hospitality is an important cultural aspect in Mexico. Individuals engaged in different businesses activities are often invited to a get together i.e. dinner or lunch. These are forums where the hospitality of an individual is put to test. The host is responsible for the welfare of the guests. They are the persons to cater for the bills. When engaged in any business with a Mexican, punctuality is of essence. However, they are flexible and accept a genuine reason for lateness. Deliberate move to be late is often lambasted; it is considered an insensitive gesture as it wastes time of a colleague or partner. In accordance to the aforementioned, it is important to conduct oneself with caution when dealing with Mexicans (Becker, 2004).

Conclusion Sound business culture is of utmost importance in conducting business in the 21st century.

Cultures are important in keeping employees and managers aligned to the objectives of a firm. In addition, a sound culture ensures firm stakeholders actions are guided by the company postulated rules and legislations. Nurturing a workforce that is sensitive to the needs of an industry is not easy. Therefore, it is important for a firm to advance sound guidelines that will ensure employees are well versed not only with the company cultural values but also with that of the society. To

BUSINESS ETHICS instill sound culture, a firm needs to expose their employees to rigorous training on issues pertaining to relationships with colleagues and customers. Advocating sound education will ensure stakeholders are well versed with the cultural aspects required in a work place. Finally, cultural guidelines are essential in addressing pressures faced by a firm courtesy of its stakeholders. A company that lacks sound cultural guidelines and understanding of the market will succumb to competition from other firms offering the same products. Companies that are sensitive to both the internal and external environment are better placed to thrive and achieve its business objectives than those that operate on fate.

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7 References

Becker, T. (2004). Doing business in the new Latin America: A guide to cultures, practices, and opportunities. Westport, CT: Greenwood Publishing Group.

Gus, G., & Thurmon W. (2002). Doing business in Mexico: A practical guide. New York: Routledge.