managing across cultures: west indian pepper company

MANAGING ACROSS CULTURES

West Indies

Pepper Company

COUNTRY ANALYSIS AND DETERMINATION OF MARKET POTENTIAL

Do not bring assets and people into Mexico unless they are essential.

According to the World Bank, Mexico ranks 12th in the world in regards to GDP and is firmly established.

The heart of most Mexican dishes constitutes three main products, which includes corn, beans and hot pepper (Chiles). (Everyculture.com, 2013)

Major Pepper Producers

Pepper industry

It is significant element of the Mexican Economy

Pepper is the number one spice in the world with a volume of supplies around 400,000 tones per year.

Chili pepper ranked fifth in commodity cash receipt in New Mexico in 2006.

Political & Legal Environment

Policies introduced by the government can impact legal transactions with which we operate in.

Grenada, as a member of the commonwealth, share one supreme court, known as the Eastern Caribbean Supreme Court, which is headed by a Chief justice, and directs the laws of each member state.

Political and Legal Environment Mexico’s government operates on three branches,

executive, Judicial and Legislative.

The head of the Executive branch is the President, who is elected by direct popular votes, and he serves a six-year term, but cannot be reelected.

Grenada’s government is a constitutional monarchy with a Governor general representing the Queen.

Both Grenada and Mexico can be affected by the political climate, and our company can face risk in both countries.

Political and Legal Environment

The West Indian pepper Company is monitoring how different political parties have different policies to direct their local economies to fiscal success.

Both Mexico and Grenada also experience labor related taxes .

The legal system in both countries thrive to protect businesses, employees and customers.

Social, Cultural & Behavioral Environment

Enjoy social conversations.

Analysis of the social, cultural and behavioral environment.

Cultural issues in management.

Lifestyle.

Mexican Etiquette

To ensure that there is minimum uncertainty in our business dealing with our Mexican counter part, translations will be done clearly and precisely

At every meeting with Mexicans, we would attempt to embrace each other.

Enjoy social conversations.

Dinning habits.

Mexican culture

Negotiations generally takes long.

Mexican intermediary.

“Time is not money” in Mexico.

"North Americans live to work, but Mexicans work to live!" (Noruega.org.mx, 2013).

Mexican culture

The Lewis cultural model

Sufficient Buying power

Mexico’s economic freedom score is 67.0, making its economy the 50th freest in the 2013 index.

The Mexican economy has shown a moderate degree of resilience in the face of a challenging global economic environment.

Use of Technology

Internet use in Mexico has grown in recent years from 2.7% in 2000 to an increase of 29.4 % in 2010.

Convergence, Broadband and Internet(skype,email, live- conferencing)

Online orders & online bank transfers.

Telecommunications Market & Mobile Telecommunications Market. (whatsApp,BBM).

Adoption Curve Stage

Market Entry

We will be exporting and contract manufacturing for companies in Mexico.

Our company will export in large bulks to “Valentina Company”, “HERDEZ COMPANY” and “CHOLULA COMPANY”.

Market Entry

The market-entry technique that offers the lowest level of risk and the least market control is indirect export.

contract manufacturing; the firm’s product is produced in the foreign market by local producer under contract with the firm.

Transactions done through an intermediary agent in Mexico.

Market Entry

Business Plan

This is our Vision

Our Plan

Our finances

Our Strategy

Implementation Strategy

References

Doingbusiness.org (2013). Ranking of economies - Doing Business - World Bank Group. [online] Retrieved from: http://www.doingbusiness.org/rankings/ [Accessed: 22 Nov 2013].

Geert-hofstede.com (2013). Mexico - Geert Hofstede. [online] Retrieved from: http://geert-hofstede.com/mexico.html [Accessed: 22 Nov 2013].

Lubin, G. (2013). The Lewis Model Explains Every Culture In The World. [online] Retrieved from: http://www.businessinsider.com/the-lewis-model-2013-9 [Accessed: 22 Nov 2013].

Thank you, Any Questions?