The rise of mnc's in mexico

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EAFIT University

School of Administration

International Business Department

THE RISE OF MULTINATIONAL CORPORATIONS IN MEXICO

Organizations and Culture

Presented to

Cristina Robledo

By

Vanessa Carmona Isaza Cod 200610048002

Laura Valencia Posada Cod 200610034002

Medellín, Antioquia, Colombia

September 2010

Index

1. GEERT HOFSTEDE’S CULTURALDIMENSIONS IN MEXICO…….3

2. ORGANIZATIONAL CULTURE…………………………………………4

3. MANAGEMENT STYLES IN MEXICO………………………………….5

4. THE RISE OF MULTINATIONAL CORPORATIONS

1. Introduction……………………………………………………………5

2. Origins of Multinational Corporations………………………………6

3. Multinationals and Capitalism ………………………………………7

4. Interrelation between MultinationalCorporations…………………8

5. The rise of multinational corporations in Mexico………………….9

5. CONCLUSIONS…………………………………………………………..12

6. REFERENCES……………………………………………………………13

GEERT HOFSTEDE’S CULTURAL DIMENSIONS IN MEXICO

“Mexico's highest Hofstede’s Dimension is Uncertainty Avoidance (UAI), indicating the society’s low level of tolerance for uncertainty. In an effort to minimize or reduce thislevel of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse”. [1]

Mexican’s way of working is more collectivist thanIndividualist. As Mexico is a culture driven by relationship, Mexican can work better as a group than as individuals and even better if the members of the team have a good relationship between each other.
But if members are all unknown, they will surely take a while to build relationship basis and strength bonds.
Once teams are formed it is better to keep developing working with the whole teamthan dismantling it and starting a new one.

Mexico manages a high degree of gender differentiation, due to the fact it is a “Machismo” culture. Male gender dominates the major part of the powerful structures in the society.
This situation makes female become more competitive resulting good when dealing with executive females, as will encounter few or any problems at the time of doing business.The graphic below shows the Hofstede’s dimensions in Mexico, being
PDI: Power Distance
IDV: Individualism
MAS: Masculinity
UAI: Uncertainty Avoidance

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(http://www.geert-hofstede.com/hofstede_mexico.shtml , September 22, 2010.)

The high level of Power distance shows the level of inequality of power and wealth in the society, being a condition accepted by the whole culture.“Within the Mexican family, the father is the undisputed authority figure. It is the father who makes the major decisions and sets disciplinary standards. While children are protected and loved, they are very dependent on both the moral support of the family as well as the authority figure to make the decisions. As a result, the maturing child entering the work place expects supervisors to takeresponsibility, and assume all accountability. In essence, the employee expects father-like behaviors.”[2]

ORGANIZATIONAL CULTURE

“Mexican culture tends very much towards the hierarchical in both personal interactivity and the way in which business is structured. It is best to expect that the organization you are dealing with will have a very centralized decision-making approach with all decisionsof any importance being made by a few key individuals at the top of the company”.[3]

It is important to be sure of matching the right level of seniority during the interactions, due to avoid insult Mexican to deal with a junior employee.
Sending a junior to negotiate with Mexican will show a lack of interest from them.

MANAGEMENT STYLES IN MEXICO

• Mexican management styles tend...