Negotiating in Mexico

by: Kevin Schuck, Ivan Pernudi,

Nicholas Coward & Zach Lupe

Agenda

• Why important• Culture• Styles• Behaviors• Tactics• Do’s and Don'ts

Culture

• Culture– Business

Climate/Conditions– Enthusiasm

– Flexible with Time

– Business Attire

– Intimate Space

Culture

• Business Processes– Power Distance

– Managerial Style• U.S. Managerial

Arrogance

– Decision-Making

– Uncertainty Avoidance

Culture

• Trust– Personal Relationship

– Mutual Acquaintance

– Social Talk

– Teamwork

Culture

• Workplace– Women

• Abrazo (embrace)

– Sexual Harassment

– Work Ethic• Mañana Syndrome

– Masculinity

Culture• Government– Caste System

– Economy

– Legal System

– Corruption• Foreign Corrupt Practices

Act

Styles:Negotiation In Mexico

• Win-Win Approach– Collaboration

• Generally Straightforward – Non-aggressive

• Time is not of the essence– Relationship building is very important

• Risk Averse – Less is more

Behaviors:Negotiation In Mexico

• Emotional– Don’t be surprised or offended by exaggerations

• Very formal– Etiquette or the lack of is key

• Non-confrontational– Yes may mean no

• Your comfort zone is not their comfort zone– Expect a smaller bubble

Tactics:Negotiation In Mexico

• The final, final, final offer– Final offers are rarely final and come frequently

• Leave a lot of room for concessions– Be prepared to go the full 12 rounds

• Playing possum– Misleading body language and disinterest should be

expected

• No good cop-bad cop– Relationships can be destroyed by this tactic

Do’s and Don’ts

• Relationship and Respect • Communication • Meetings • Negotiation • Contracts • Other

Relationship and Respect

• Build Lasting and Trusting Personal Relationships

• Working relationship • People, Not Companies • Family Owned or Controlled

Communication

• Language • Space • Direct & Indirect

Meetings

• Individuals or Teams • Hierarchy • Scheduling • Introductions

Negotiations

• Attitudes and Styles • Sharing of Information • Pace of Negotiation • Bargaining • Decision Making

Contracts

• Written Contracts • Final Contracts

Other

• Attire • Dinners • Documents • Gifts