How to deal with our new intercultural world? Is it possible to act in the same way with everybody? Should we try to adapt to each country to be successful? What would it involve for companies if it's not done? All these questions are current issues in the globalisation world. To do business with another country is not just a matter of investments, trade agreements and 3 days business trips. You must know the history, the economy, the culture and the main patterns of this country. What I tried to do in this report is to explain how culture affects the style of management in Mexico. Why Mexico? First, because it's the 13th economic country in the world, and moreover a growing country (according to Golmansachs review of emerging economies, by 2050 Mexico will be the 6th largest economy in the world behind China, USA, India, Japan and Brazil). Doing business with Mexico with thus soon begin essential for any country. Secondly because after my internship in Mexico last year, I was surprised to notice that some of my first thoughts were true, but should be completed by deeper inspection.
[...] Inverlat and BNS culture In Canada, BNS was considered the bank with the most stringent financial control systems of the country, with a tough system of policies and controls. Inverlat executives, on the other hand, were accustomed to almost complete autonomy with little or no control imposed on their spending. An early example experienced in the bank was a new policy implemented by BNS management to control gifts received by managers from clients. Some Mexican managers took offence at the imposition of an arbitrary limit. [...]
[...] Results The results and analysis of this experience was positive: the Canadian directors felt that the Canadian team had been relatively successful. Many managers referred to this period as the “Honeymoon stage”. It was generally felt that the situation would intensify as managers looked for results from the restructured organization and as staff reductions became a reality. The management between these two cultures learnt a lot of patterns to each part and the only thing now is to see how it will evolve Conclusion Mexico is a developing country which will become in several years [...]
[...] Although employees accept the idea of getting involved in modern managerial practices, they prefer a managerial style in which one senior executive makes the decisions. Sharing responsibility for decision- making has other advantages. It allows companies to resolve conflicts and confrontations. Mexicans traditionally accept the sort of manager who acts as a mediator between parties in a conflict. Workers feel motivated to share the responsibilities of their team. However, this can also provide “another way for people to cut their individual risk by sharing decision-making with other individuals in the company. [...]
[...] Cultural Patterns Place of the religion Their religious devotion is one example of how local culture affects the styles and practices of work in Mexico. Some global executives would be surprised to learn that many employees in Mexico like to do their jobs in the presence of such religious images as the Virgin of Guadalupe. Links with family Mexican business model is a hybrid of globalization and the region's historic traditions. Those traditions are characterized by large social gaps and a widespread collectivism that has various manifestations. [...]
[...] and sense of "now." Grupo Financiero Inverlat Analysis The Canadian Bank of Nova Scotia (BNS) had increased its stake in a Mexican bank, Grupo Financiero Inverlat in 1996. A team of Canadian managers had been sent to Mexico to assume management of the ailing financial institution immediately after the deal was struck. Context A brief Inverlat history In 1982, in his last days as leader of the Mexican Republic, President Lopez Portillo announced the nationalization of Mexico's banks. They would remain government institutions for the next ten years. [...]
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