Introduction
Globalization provides quite a dependable means for the attainment of business growth. This, however, comes with some challenges as different countries have different cultures that can either grow or hinder a business from fully realizing it is potential. Cultures vary from country to country, usually resulting in differences in terms of ethical practices and business etiquette. It is important for a business to know and adopt some of these cultures in order for it to be successful in a country, according to the bill that fits the particulars of its culture. Knowing the right business culture for the country in which you wish to invest goes a long way in streamlining business expansion activities. This essay will discuss different cultures in Saudi Arabia, Mexico and India and how they are likely to impact my business ventures.
Cultural Components and their Differences
Some of the components of these cultures that I need to understand are, business ethics and business etiquette, language, and values. In Asia, focusing on India, her main language is Hindi and business is conducted on a group, not an individual to individual basis, as Hindus like to create generational wealth. Therefore, I shall have to seek partnerships, preferably with an Indian family that’s already established, business wise, and this shall be prior to my entrance into the Indian market. Asians also value gifts and so, it is important that I have one as they most probably will present me with one. The business card aspect can also not be overlooked. One needs to have business cards to give when meeting potential partners and clients. A country like Saudi Arabia values individual business relations. The business people there prefer doing business in person and with people they trust. One has to be trustworthy in order to succeed in their respective business. Recommendations are also a common practice there. You need to have a contact there who will introduce you to the business market there in order to make any considerable penetration of the said market. Their main language is Arabic.
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Latin Americans, just like Asians, prefer to conduct their businesses in groups. In Mexico for example, most business are managed as family units and in order to be successful here, I shall have to embrace the culture of collectivism. They also value the ascription of titles and hierarchical systems are highly respected in this country. Their main language is Spanish. Each of these countries require different considerations for purposes of the facilitation of business collaborations. I shall need to consider whether or not I am ready to follow the subtle unwritten rules of these countries. For instance, when looking at Saudi Arabia, I will have to consider whether or not I am ready to interact with the Muslim culture as it is primarily a Muslim country, and to this end, it strictly follows sharia laws. In addition, the Saudi Arabian population is mostly conservative and they are less oriented when it comes to fashion. For India, It is important that I learn the correct manner in which to presenting business cards and must consider whether or not I am ready to start presenting gifts, every other time I have a business meeting. Mexicans, on the other hand, are more open to the western culture, which is a big contrast with respect to Saudi Arabia. Mexicans are more open minded when it comes to style and fashion.
Applicability of the U.S Management Style in Saudi Arabia, India, and Mexico
No, the United States management style cannot be applied in these countries due to the differences in their cultural components. According to Davis, Chatterjee, & Heuer, (2006), in the United States, professionalism is strictly emphasized within business settings, something that is not practiced in India, Saudi Arabia, and Mexico. These countries also consider social relations in their hiring processes amongst other business processes while the United States does not value the same, respectful to hiring, selection, and other business processes. Also, family values are lionized in India and Middle East (Fernando, 2009) in contrast, the United States does not follow these values. In the United States, it is very common to meet women managers owing to the fact that women are highly empowered while in countries like Saudi Arabia and India, the society still believes that a woman’s role is to support the man back home, such that she must not take up any business leadership roles. The political environment in Mexico, Saudi Arabia, and India highly impacts on private businesses while in the United States, businesses enjoy non-political interference.
Economic Systems
The economic systems of Saudi Arabia, Mexico, and India are classified differently because they are designed around different traditions in keeping up with their unique political and social situations. The Indian economic system can be classified as a mixed economy. According to Hardgrave & Kochanek, (2008) Asian countries are business oriented and this has manifested itself in form of their rapid economic growth over the years. I have classified the Indian economy as a mixed economy because it depends on different sectors to sustain the rates at which it grows. These include the agricultural sector, SME’s, foreign investments, and labor. The Saudi Arabian economic system, on the other hand, is characterized by deep rooted Islamic traditions and traditional bureaucratic processes. Its growth rates depend majorly on the revenues from oil exportation. I have classified it as a bureaucratic economic system because its primary goal is to get revenues from oil, gas, and petroleum products exports. Latin America’s economic system is regional. This economic system enhances coordination and promotes consultation. I have classified it as regional due to the involvement of all the countries in each other’s economic activities.
The Feasibility of my Business Plan
After having done a deep analysis of each country’s economic culture, I will move forward and shall set up shop in Mexico and India. This is because their growth rates seem more progressive and also because they are not as bureaucratic as the countries in the Middle East. Their cultures are also more adoptable to as opposed to the traditional Islamic cultures in Saudi Arabia. I believe that these are the countries that will help me realize my business goals and objectives. These two countries, as in particular India, are welcoming to foreign investments as they continue to grow their economies. In conclusion, researching a country’s economic and cultural environment is very vital for anyone willing to globalize their business.
Reference List
Davis, H.J., Chatterjee, S.R. & Heuer, M. (2006) Management in India: trends and transitions. SAGE Publishing
Hardgrave, R.L. & Kochanek, S.A. (2008). India: Government and Politics in a Developing Nation. 7 th edn. Cengage Learning
Fernando, A. C. (2009). Business Ethics: An Indian Perspective. New Delhi: Pearson Education India.
