Chapter 3 Experiential Exercise Delaney Environmental Services To: Sandy Burk, D

Question

Chapter 3 Experiential Exercise Delaney Environmental Services To: Sandy Burk, Director of Operations From: J. Delaney, Managing Director Subject: Global Expansion DES is looking at expanding its global market opportunities. With our experience we have a lot to offer the Latin American market, particularly in Mexico. Specifically, I would like for you to cover: (1) cultural differences we would need to consider; (2) the current currency rate of exchange and how it has changed over the last three years; and (3) any legal or political situations we need to be aware af Ra

Explanation / Answer

ANSWER-

This is an experimental excercise with a subject of global expansion of business opportunities for DES. they are asking to cover following areas to expand their market in latin american markert specifically in MEXICO

1- CULTURAL DIFFERENCES TO CONSIDER -

when an organisation enters into a new market or area it faces many problems.the one of the main problem among them is cultural difference.before entering into literally different market one needs to cover or research about its culture. culture includes the following points-language,lifestyle,society,religion,caste,values etc. latin american comprises of people from italy,spain,portuguese,french,germans etc. but in context of mexico is different in culture from native america.

*religion- most of the mexican population is christian.

*area of interest-most of the mexicans have the interest in arts & music.

*language-mexican people speak spanish.

*cuisine-the popular cuisine dishes of mexico are tacos,enchiladas,tamales etc.

*music-mariachi,banda,corridos are some of the traditional music of mexico.

*sport- the national sport of mexico is charreria.

2- CURRENT CURRENCY EXCHANGE RATE & ITS CHANGE OVER THE LAST THREE YEARS-

While entering into a new market of any counrty, it is essential to know its currency exchange rate to prevent any legal issues in the future.

in mexico the currency is "mexican peso". & the current exchange rate of one mexican peso is 0.053 USD. or 1 USD = 18.89 MXN.

FOR dec,2016 1 USD = 20.7 MXN

FOR dec,2015 1 USD = 17.28 MXN

FOR dec ,2014 1 USD = 14.76 MXN

from the above figures we can see that the value of mexican peso was increasing in the past three years but currently it has been decreased which is a good opportunity to invest in the market.

3- LEAGAL & POLITICAL SITUATIONS-

Every country has its own legal & political rules & regulations which differs country to country. to enter in to a new market company must be aware of the following points-

*constitution of that country.

*laws of that country related to sales,business,partnership,employment,registration of the company etc.

*legal parties in power & theri implications on the business.

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