MEXICO

GEERT HOEFSTEDE Power distance: It expresses the attitude of the culture towards the fact that all individuals in societies are not
equal. Power distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.

Individualism: The degree of interdependence a society maintains among its members It has to do with whether
peoples self-image is defined in terms of I or We. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to in groups that take care of them in exchange for loyalty.

Femininity vs. masculinity: A high score (masculine) on this dimension indicates that the society will be driven by
competition, achievement and success. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

Uncertainty avoidance: The extent to which the members of a culture feel threatened by ambiguous or unknown
situations and have created beliefs and institutions that try to avoid these.

Long-term orientation: The extent to which a society shows a pragmatic future-oriented perspective rather than
a conventional historical short-term point of view.

FONS TROMPENAARS
1. Universalism vs. particularism (describes how people judge other peoples behavior. )

Universalist:
attaches great importance to the observance of rules. behavior tends to be abstract. What is right is always right in every situation and for everybody. A Universalist tries to apply the same rules in all situations. will not make differences between people from the narrow environment, such as family, and the wider community, such as strangers. personal feelings and emotions are put aside, Universalist prefer to look objectively at the situation. everyone is equal as there are no differences. rule-based behavior refers to the tendency that exceptions in the rule construct could lead to weaknesses. It is feared that once exceptions are approved, could be a door down the system.

Particularist:
assesses the specific circumstances or the personal backgrounds. In particularism societies in any situation behave depends on the circumstances. A Particularist must therefore sustain, protect or discount this person no matter what the rules say.

treat their narrow environment the best they can. The in- or outgroups are clearly distinguished. Always differences between individuals. Personal feelings are down here, not aside.

universalism societies: Germany, Switzerland, Sweden, United Kingdom, Netherlands, Czech Republic, Slovakia, Belgium, France. particularism societies:Italy.

2.

Individualism vs. collectivism

INDIVIDUALIST: The individualist Sweden culture sees the individual as the end and improvements to communal arrangements as the means to achieve it. The process of decision-making in individualistic cultures is usually very short. A lonely individualist makes decisions in a few seconds. While this may make for quicker deliberations, it will often be discovered month later that the organization has conspired to defeat the decisions. Delays due to implementation problems are followed by short decision-making. To get all involved people in one direction individualist will frequently ask for a vote. Making mistakes in an individualistic culture means that the individualist is punished for it and therefore becomes a better team-member. The communitarian Brazil culture sees the group as its end and improvements to individual capacities as a means to that end. Yet if the relationship is truly circular, the decision to label one element as an end and another as a means is arbitrary. By definition circles never end. Every end is also the means to another goal. Further communitarian cultures prefer plural presentations. In unexpected demands a communitarian wishes to confer with those back home. Those communitarians at a meeting are delegates, bound by the wishes of those who sent them. Looking at the decision-making process, a communitarian decision takes much longer than an individualist would take. It takes so much time, because there are sustained efforts to win over everyone to achieve consensus. Usually there will be detailed consultations. Consensus will be achieved, because of pressures to agree on collective goals. While making mistakes the communitarian logic is the reverse to the individualistic one. They believe that through team membership they support individuals so that they become better individual workers. If a mistake is made only the immediate group needs to know this. The reconciliation lies in the fact that the group has taken care of the individuals mistake and no extra punishment is required. On closer examination communitarian and individualistic cultures are reconciled. This is closer to our own conviction that individualism finds its fulfillment in service to the group, while group goals are of demonstrable value to individuals only if those individuals are consulted and participate in the process of developing them. The reconciliation is not easy, but possible. [edit]3. Neutral vs. affective (Do we display our emotions?) Trompenaars third dimension addresses the importance of feelings and relationships. In a neutral culture people do not carry out their feelings but keep them carefully controlled and subdued. Instrumentality and rationality are of action in the foreground. People in such a culture are not necessarily cold or unfeeling, nor are they emotionally constipated or repressed. The emotions they show are often the result of convention. In neutral cultures, where emotions are controlled, irrepressible joy or grief will still signal loudly. Members of cultures, who are high emotional, showing their feelings plainly by laughing, smiling, grimacing, scowling and gesturing. These people find immediate outlets for their feelings. The feelings, which are shown are signaled, in contrast to the neutral culture people, more loudly still in order to register at all. But in such cultures it is difficult to find words or expressions, which are adequate for the strongest feelings, since they have all been used up. Both factors, however, again cannot be separated completely but should be considered in combination. When

expressing feelings, one is looking for corresponding emotions in the opponent. An emotional person is looking for a direct emotional response against their emotion and vice versa. [edit]4. Specific vs. diffuse (How separate we keep our private and working lives ) This dimension is sometimes referred to as "concern-/commitment-dimension", which is expressed at the level of an individual affected by a particular situation or action. In specific-oriented cultures areas of life such as work and family are recognized widely. A member of a specificoriented culture is more open in the public space but very closed in the private one. Other characteristics of people in such a culture are directness, being to the point and purposeful in relating. There are often principles and consistent moral stands independent of the person being addressed. In diffuse-oriented cultures areas of life such as work and family are closely linked. A diffuse-oriented person is more closed in public space but is very open in private space. In contrast to the specific-oriented persons, diffuseoriented are indirect, circuitous and seemingly aimless in forms of relating. High situational morality depends upon the person and context, which is encountered. [edit]5. Achievement vs. ascription (Do we have to prove ourselves to receive status or is it given to us?) This dimension refers to the question of whether the status of an individual results from his religion, origin or age or the status has mainly to do with his own performance. In achievement-oriented cultures a title is used only when it is relevant to the competence an individual brings to the task. Respect for managers is based on the individual's knowledge and skills. Decision-making is challenged on technical and functional grounds. In this kind of dimension the status of an individual refers mainly to his own performance. In ascription-oriented cultures a title is extensively used when these clarify one in an organization. Respect for a manager is based on seniority and hierarchy. Decision-making is challenged by people with higher authority.--In an ascription-oriented culture a status refers to the religion, origin or age of the individuals. In addition there is a different way in which societies look at time.

Power distance At a score of 81, Mexico is a hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat Individualism Mexico, with a score of 30 is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employees in -group, management is the management of groups. Masculinity / Femininity Mexico scores 69 on this dimension and is thus a masculine society. In masculine countries people live in order to work, managers are expected to be decisive and assertive, the emphasis is on e quity, competition and performance and conflicts are resolved by fighting them out. Uncertainty avoidance Mexico scores 82 on this dimension and thus has a very high preference for avoiding uncertainty. Countries exhibiting high uncertainty avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation. Long term orientation No score available for Mexico. 1. Universalism vs. particularism (What is more important, rules or relationships?)

Mexico

high P

high collectivistic

low affective

middle specific

Middle ascription

EUROPEAN COUNTRIES

Business culture in Mexico The defining characteristic of business culture in Mexico is that successful, productive business relationships are invariably built on personal trust and familiarity between individuals. In Mexico, business is ideally conducted faceto-face, and among people who know and trust each other. If at all possible, try and organise your initial introduction to a potential business partner through an existing contact of theirs. Also bear in mind, that due to this more interpersonal approach business can often proceed slowly in Mexico, with people looking to cement personal relationships before getting down to the 'ins and outs' of negotiations. Although many Mexican businessmen speak perfect English, Spanish is the official language of business in Mexico and learning a few choice words and phrases, will go a long way toward ingratiating yourself with your new associates. Although management structures in Mexico remain hierarchical (at worst, they can even be a little paternalistic), business etiquette in Mexico is marked by a combination of formality and real warmth, friendliness, and openness between individuals. Use titles ('Seor' and 'Seora') until strictly instructed not to do so, but do not shrink away from engaging in personal discussions with your colleagues. Remember, in Mexico, your qualifications, expertise and work experience as important as they are will not serve you as well as your ability to develop personal relationships with your associates.

Business meetings must be scheduled in advance (not during siesta time!), and then confirmed a few days before they are due to take place. It is important for you to be punctual, but bear in mind that your hosts might not show you the same courtesy in return (don't take it personally). Meetings often begin with some small-talk this is to encourage people to get to know each other and will proceed at the pace determined by the important roleplayers present. Even though executive company decisions are always made by the person in the highest authority, junior employees are encouraged to share their opinions during meetings, and to engage in debate. Bear in mind that, in Mexico, it is very rare to hear the word 'No' being used in a direct or confrontational way direct refusals are seen as rude. If you don't like someone's idea, or if they don't like one of yours, a gentler, more diplomatic expression 'Let's wait and see', 'Let me think about that one first' should always be used. Expats should also be aware that displays of emotion are common during business meetings in Mexico. These might be uncomfortable to witness at first, but are regarded positively in the Mexican workplace as illustrations of emphasis, engagement, and passion. The dress code for the Mexican business world is smart and formal, with an emphasis on style. Men wear ties, dark colours, and accessories, and the basic assumption is you'll endeavour to look as good as you possibly can! Women also dress smart and stylishly (business suits are widely worn) and will often go to work in high heels and makeup. There is no accepted, standard procedure for the transfer of business cards, although these are often swapped. Make sure one side of your card is translated into Spanish, and make sure your professional qualifications are listed on your card.

Attitude toward foreigners in Mexico Mexico is a friendly, welcoming place to do business and foreigners shouldn't experience too much difficulty in assimilating themselves into Mexican corporate culture. Bear in mind, however, that not being able to speak Spanish will obviously alienate you a little from the general public, and that in some areas of the country suspicious, or even hostile attitudes towards Americans may be commonplace.

Starting a business in Mexico Foreigners are able to start a business in Mexico, though it is not the easiest process in the world.

Steps for registering a business in Mexico Obtain the authorisation for your company name online and file a draft deed of incorporation with the public notary

Sign the deed of incorporation in the presence of a public notary, obtain a Tax Registry Number (RFC), and then file the deed with the Public Register of Commerce Register your company with Mexico's Social Security Institute (IMSS) Register for payroll tax with the local tax administration (Secretara de Finanzas del Gobierno del Distrito Federal) Give notice of opening a mercantile establishment to the local government ( Delegacin) Register your new company with the National Business Information Registry (Sistema de Information Empresarial, or SIEM)

Doing business in Mexico: Fast facts Business language: Officially Spanish, though English is widely spoken Hours of business: Generally, 9am to 6pm, Monday to Friday (with a two or three hour siesta in the early afternoon) Dress: Smart, formal, stylish Gifts: Not usually given at business meetings though a small token of your sincerity might be appreciated. If invited to a colleague's home, be sure take along some wine, sweets or flowers (avoid red petals and marigolds). Gender equality: Ostensibly, women are treated as equals in the Mexican business world, often rising to senior positions. However, as has been mentioned, business in Mexico can still follow paternalistic patterns and the presence of machismo in the workplace is, regrettably, sometimes still a reality that expat women will have to deal with

Do's and don'ts of doing business in Mexico DO - be willing to invest in personal relationships with your colleagues DO - learn to relax, and to take things as they come DO - learn at least a little bit of Spanish you'll find that Mexico's culture will offer itself up to you if you do DON'T - be impatient, pushy or rude. Let things develop at their own pace DON'T - be blasphemous, especially during business meetings DON'T - feel frustrated if your good ideas are not used immediately. Mexican businessmen are open-minded, but may be slow to change their ways

Family is all important in Mexico; their interests will always prevail over business interests ! Personal friendships are key to doing business in Mexico (personalismo); take good care of your relations and dont replace any contact person just like that ! Be courteous and diplomatic in your communication, just as the Mexicans; don't

confuse this approach with agreement on content ! Business appointments can best be made for breakfast (between 8 and 10 am) and lunch (the main meal) ! Be on time for appointments but expect delays; at social events at private homes you should arrive at least half an hour to one hour late! ! Presentations should focus on common goals and mutual advantages; an emotional appeal is more effective than rational arguments (and use images) ! Don't compromise too soon in negotiations; this will be interpreted as a sign of weakness ! Mexicans are warm and friendly and like close personal distance and the touching of shoulders or arms; do not back away and be prepared to hug (between men) ! Do not look your conversation partner directly into the eyes; this can be intimidating ! Mexicans are sensitive to status; make sure your delegation leader is high level and make use of some decorum (such as first class hotels and restaurants, clothing etc)

Mexicos cultural heritage is a rich and diverse mixture of native American, Spanish and North American influences, with wide regional variations. Fierce regional loyalties prevail, with strong mestizo influences created from descendants of the native Aztec, Maya and Toltec civilisations mingling with the Spanish. To better understand the culture, there is no substitute for travelling widely in the country. Language provides access to the culture, and any effort to learn the language will be rewarded not only with better understanding, but also by Mexican partners appreciating the effort. While it is useful for travelling, it is almost essential to make the most of living and doing business in Mexico. Loyalties Mexicans are intensely nationalist and emotionally attached to their home town or region. It would be a mistake to assume that the capability to do business in other parts of Latin America translates directly into success in Mexico.

Foreigners have been the cause of a lot of trouble in Mexicos past and therefore the attitude towards them is mixed. However, as Mexico has become more open, there is great interest in what foreigners have to offer. Personal relationships are vital. They often determine the choices made in business, rather than the more advantageous deal or the better-quality product or service. While this is changing, the intent behind it is worth remembering. Mutual trust and respect grow with time and are more valuable than a passing opportunity. Business is strictly done between friends, and fortunately Mexicans are a gregarious and friendly lot, so it does not take long to make friends and to build up confianza mutual trust. Starting with business breakfasts and luncheons, the process of getting to know each other will move to evening outings and to meals with the family. Respect for a person, and the sensitivity needed to assess quickly how that persons authority or status could be affected by a particular course of action, is central to business relationships. Even an obviously unintended or presumably insignificant slight can have unwanted and lasting consequences. Status is integral to respect, so the kinds of clothes worn and cars driven are seen as a sign of status and contribute to respect. The proper title or form of address is of great importance. Mexicans tend to address each other by their professional title: Licenciado (holder of a university degree, or lawyer); Ingeniero (engineer); Arquitecto (architect); Doctor (Ph.D. or medical doctor). When in doubt, call a business colleague Licenciado, or Licenciada for a woman. Like other Spanish-speaking peoples, Mexicans use two surnames (e.g. Vicente Fox Quesada: Fox is his fathers surname; Quesada is his mothers). They are often addressed by the first last name only e.g. Presidente Fox. The overwhelming majority of the population professes to the Roman Catholic faith, in spite of the strong Mexican tradition of anticlericalism. Religion may not be overtly visible in the workplace, but the values which lie at the heart of the faith inevitably have molded

societal attitudes. Amongst these are a fatalistic view of both success and failure as being outside an individuals control. 24 Doing Business in MexicoThis also supports the predominantly authoritarian structures and centralised decisionmaking common to Mexican business management. Hierarchies are well defined with little authority given to lower ranks and all decisions taken at the peak management levels. If the decision-maker is not there, the decision is not taken, as devolution of responsibility and decision-making is rare. This can create delays in responding to even urgent matters. Mexicans are not overly fond of joint ventures as they have difficulty in relinquishing control. The extent of formality in the conduct of business can depend on the industry concerned. In some cases large business deals will be agreed even without a contract, where trust exists and the nature of the industry is such as to make it difficult for any of the parties to escape the commitment they have entered into. In other circumstances even the smallest transaction can be subject to much red tape. However, concluding large deals without proper contractual arrangements is not recommended. Mexicans tend towards being guarded. It will not be unusual for even a large company not to have a business plan, as such plans would reveal too much. If a business plan exists, it will not surface in the early stages of exploring a possible venture or partnership. More important is the process of getting to know each other. Women in the workplace are a relatively new phenomenon, resulting from a change in attitude and the dramatic increase in the number of women with higher education. Many companies now accept women for key positions, but this is likely to be in larger and more progressive enterprises. The ease with which foreign women can operate in this environment will depend on how they approach the occasional hurdle, such as not being taken as seriously as their male counterparts. Persistence, determination and achieving results tend to overcome gender-related misconceptions. Mexicans work hard. The priority, however, is not work, but family and leisure.

Punctuality is not generally a Mexican virtue, and yet it is advisable to be punctual while not expecting it in return. Take along this book for something to read. If in Australia four or five meetings are possible in a day, scheduling more than two or three a day in Mexico may be optimistic. Everything takes longer than expected, but it is not good form to look at the watch. Dealing with the Mexican bureaucracy is time consuming and sometimes frustrating. Permits are required for many activities and these take time to acquire. People are protective of their administrative procedures, and this can occur in companies as well as government agencies. Nevertheless, in the past decade there have been dramatic improvements through deregulation, and further changes are planned, including greater access to government through internet services. Excessive bureaucracy can contribute to corruption, as the attraction of circumventing procedure is heightened by urgency, and the helpfulness of decision-makers. Taking a strong and vocal anti-corruption stance as a business leader is often effective in influencing behaviour in the home organisation. Eliminating corruption is a high priority for government, and the case of a former Presidents brother accused of illicit enrichment is seen as a landmark, a precedent and a deterrent. The problem, and it is a diminishing problem, is how an Australian company should deal with situations where it is clear that certain incentives are expected in order to resolve a problem, secure a permit, or obtain a license. In general Australian companies operate in PART TWO Operating in the Market 25foreign markets in accordance with the ethics and codes of conduct required of them domestically and are not necessarily used to confronting such situations. It is important for it to be known that Australian companies will not engage in unlawful behaviour in order to secure contracts or other benefits. Having said that, there are occasionally local customs relating to gifts and gratuities which may be an inherent part of moving things along. These are of a minor nature and,

more often than not, are perceived as being built into an employees remuneration structure. It may, for instance, consist of a gift at Christmas time or at another appropriate local occasion. In these circumstances a companys local agent will probably include any such events in the day-to-day expenses billed to the company, and it would be reasonable to regard it as a valid business expense. While in the Anglo-Saxon ethic nepotism is generally frowned upon, in Mexico it is an accepted part of business. It is a cultural phenomenon related to the importance of relationships (including within a family) and the need to have in place people of trust. Not only may a business owners son work in a responsible position in the company, but a number of other relatives and those of senior employees may be populating key points in the hierarchy. Australian business, well-versed in Asian ways, will discover that negotiation in Mexico has an unexpected familiarity and twist: Yes can mean no, and no can mean maybe. And if the former is the case, the practice of dar largas, or procrastination, may be adopted by the party who had meant to say no. The difficulty is deciding whether further pushing and negotiating could bring results, or whether the deal is dead. What lies at the heart of this ambiguity is that it is regarded as impolite to verbally disappoint to say no. This habit can have unexpected results: it can happen that a sit-down dinner party will only have half the guests turning up in spite of assurances from all that they will be there. As a result of their gregariousness and their national pride, there will be continuous sharing of sights, history, culture and food. Mexican cuisine is considerably more diverse and subtle compared to what, with few exceptions, passes for Mexican food outside the country. Sharing food is sharing culture, and often business is done during breakfast or lunch. The bill at a restaurant is normally picked up by the person who invites the others: the meaning of the words invite for lunch are synonymous with let me buy you lunch. Other business habits worth remembering are:

 Shaking hands is common on introduction and every meeting. Close friends of opposite gender exchange cheek kisses, while close male friends embrace and shake hands. There are variations in this theme, and after a while the nuances become clearer. Telephones are for making arrangements, having a chat and confirming appointments. They are not for closing deals. Faxes are used for that purpose. It is useful to remember that spoken words are not worth the paper theyre not written on. E-mails are gaining ground, but are still far from being widely used. Security is an important consideration for tourists and expatriates living in Mexico. Precautions are the order of the day. Muggings and car-jackings are a feature of the major cities and in the vicinity of the US border. A Mexico City newspaper reported that in the space of two years one in seven residents claimed to have been a victim of personal security crime. Fortunately, foreigners are not prime targets, and common sense quickly reduces risks. Kidnappings occur, but again foreigners generally are not targets (unlike Colombia).