Expansion of Business in Mexico Report 2022

RUNNING HEAD: EXPANSION OF BUSINESS IN MEXICO
Expansion of business in Mexico
Name of the Student:
Name of the University:
Author note:

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Table of Contents
Introduction:....................................................................................................................................2
Strategy and plan:............................................................................................................................2
Culture of New Zealand and Mexico:.........................................................................................2
Focus on the customer:................................................................................................................3
Leadership strategy:.....................................................................................................................4
Selection of expert manager and staff:........................................................................................5
Analysis and critique:..................................................................................................................6
Communication plan:...................................................................................................................6
Recommendations:..........................................................................................................................7
Conclusions:....................................................................................................................................7
Data and research:............................................................................................................................7
Refferences:.....................................................................................................................................9

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Introduction:
Spark New Zealand Limited, which is known as Spark, is a New Zealand based
Telecommunications Company. Mexican government approached the Spark New Zealand
Limited for the first time to set up a manufacturing center and distribution operation in Mexico.
This report gives attention to the leadership strategy, which will cover both New Zealand and
Mexico. The leadership strategy developed in this article will help the company to resolve
problems such as staff selection, training and development, culture, and ethical issues in the new
market. The paper will focus on the selection of staff and expert manager for Mexico through the
geocentric approach.
Business expansion is the way to expose the products and services to a broader audience.
Business expansion will help the company to create new customers and enlarge the profits. Spark
New Zealand Limited provides telecommunication services in New Zealand for the last thirty-
two years (Conway & Meehant, 2013). To create employment opportunities and create a
competitive market for telecommunication, the government of Mexico and other parties
approached this company to set up a new business in Mexico. This company will expand its
business in Mexico and that will be beneficial for the company.
Strategy and plan:
Culture of New Zealand and Mexico:
Geert Hofstede’s dimensions analysis will help Spark New Zealand Limited to understand
better the intercultural differences between Mexico and New Zealand. There are six dimensions

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of this analysis, which are power distances, individualism, masculinity, uncertainty avoidance,
long term orientation, and indulgence.
Mexico, with a score of 81, follows hierarchical order. In this country, everybody has a
place and that needs no other justification. Mexico, at a score of 30, has a collectivistic society.
Thus the country has a masculine society with a score of 69. In this country, people live in their
work. In the uncertainty avoidance dimension, this country scores 82. Mexico has a top
performance for avoiding uncertainty. In the long term orientation dimension, the culture of
Mexico is normative. Mexico, at a score of 97, tends indulgence ("Mexico - Hofstede Insights",
2019).
New Zealand scores 22 in power distance dimension. This country, at a score of 79 in the
individualism dimension, has individualist culture. New Zealand, with a score of 58 in
masculinity, considered as a masculine society. In the uncertainty avoidance dimension, this
country scores 49, which does not show the preference. In the long term orientation dimension,
New Zealand scores 33. So New Zealand is a normative country. This country, with a score of 75
in indulgence dimension, tends indulgence ("New Zealand - Hofstede Insights", 2019).
Focus on the customer:
To expand its business in Mexico the company has to develop a strategy. Customer focus
plays an important role in the overall success of a business organization like Spark New Zealand
Limited (Rego, Morgan &Fornell, 2013). Customer satisfaction will help the company to
increase its business (Hill&Brierley, 2017). Spark New Zealand Limited` gives priority to
customer satisfaction and focus on all the customers (Sanuri, 2013). In Mexico, Spark New
Zealand has to provide better telecommunication services in comparison with other

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telecommunication service providers like Telefor De Mexico. In Mexico, at first, this company
has to provide a basic pack and premium pack of telecommunication service at a low price to get
acceptance in the market. To be familiar, Spark New Zealand has to organize promotion,
campaign, and advertises. This company has to develop a professional friendship relation with
the customer of telecommunication service in Mexico. Spark New Zealand has to deal with
construction permits, getting electricity, registering property, protecting investor, enforcing the
contracts, resolving insolvency, getting credit, culture (Conway &Meehant, 2013).
Leadership strategy:
To expand its business in Mexico, the Spark New Zealand Limited needs to follow
democratic leadership theory. A democratic leader develops decision based on every input
provided by each team employee. In this leadership theory, the democratic leader makes the final
call. But about the direction of the company, every employee has an equal say and equal right to
give any opinion. It will provide a positive mentality among the employees. Democratically, the
democratic leader collects opinions to manage various obstacles like the selection of staff,
culture, proper training and development of newly recruited staff, corruption, bribery, business
services, child labor issue, raw material, disposal of waste and several other problems. While
setting up a new business in Mexico the company will face several obstacles. To handle those
obstacles, the leader has to deal with innovative ways because these obstacles are not similar
types. According to a democratic leadership strategy, the leader will provide discussion related
options. Through this discussion, the democratic leader will gather opinions. To handle obstacles
in a new country, the leader can use these opinions (Harris et al, 2013).
Selection of expert manager and staff:

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While recruiting, the human resource manager must recognize the global competitiveness
of the telecommunication service and the obstacles the company is going to face shortly. The
international recruitment method has many approaches such as an ethnocentric approach, a
polycentric approach, and a geocentric approach. Spark New Zealand Limited should follow the
ethnocentric approach of recruitment to create a new business in Mexico. According to the
ethnocentric approach, Spark New Zealand Limited should hire an expert manager from New
Zealand to expand the business in Mexico. The company has to recruit an expert person from
New Zealand. The ethnocentric approach will help the company to transfer the policies and
procedures from New Zealand to Mexico.
To enlarge its business, while selecting staff from and manager most of the international firms
prefer the technical skill and the previous performance record. To set up a new business in
Mexico, Spark New Zealand should follow the polycentric approach. HR should follow the
polycentric approach to recruit managers and staff. According to the polycentric approach,
multinational companies recruit the local eligible persons for the post of production manager,
distribution manager, marketing manager, sales manager, and others. The HR of the company
should recruit its employees based on locality, experience, knowledge about the local market,
technical knowledge, and knowledge related to the telecommunication sector, flexibility, proper
education and adaptability skill (Mahmood, 2015). The selection procedure has three steps,
which are recruitment, selection, and selection. For the recruitment, HR has to give advertise
through the internet. The screening procedure will focus on the previous experience, theoretical
and practical knowledge about telecommunication service. After the screening procedure is
done, the HR will select the most eligible candidates for Spark New Zealand Limited.

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Analysis and critique:
Democratic leadership will help Spark New Zealand Limited to expand its business in
Mexico. But there are many criticisms against the democratic theory. In a democratic leadership,
reduction of efficiency is a problem. Reduction in efficiency is not going to help the company.
There is another criticism, which is a problem with accountability. The democratic leadership
has negative impact. But avoiding the negative impact of democratic leadership strategy will
help Spark New Zealand Limited to start the new business in Mexico.
Communication plan:
Communication plan plays an important role to spread the messages of the company to
the customers to create the company’s mutual benefits (McKeever, 2016). A proper plan will
help HR to achieve the targets and maximize the company’s performance. The HR of Spark New
Zealand Limited designed a communication plan to run its telecommunication business in New
Zealand (Spark NZ, 2019). The company has to prepare a communication plan for the citizen of
Mexico. The communication plan should focus on the new customers of the telecommunication
service of Mexico, and fulfill their demands (Wilson et al., 2016). By using the communication
plan the HR can communicate with all employees and the consumers of Mexico (Carayannis,
Sindakis& Walter, 2015).
Recommendations:
Here are a few recommendations for Spark New Zealand Limited which they might put to
use to meet the desired results. At first, set up a new manufacturing center and distribution center
in Mexico. Before investing in the new business project, the company has to study all the

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taxation system, banking system, and the laws of Mexico (Piekkari, Welch & Welch, 2014). Hr
of Spark New Zealand Limited should check all the cultural differences and language barriers.
Research about the language and culture of Mexico will help the company to understand the new
market. Spark New Zealand should invest in the advertising campaign to be familiar with the
customer of the telecommunication service of Mexico (Ovando &Olivera, 2018).
Conclusions:
Therefore, it can be said that, an appropriate leadership strategy will help the company to
expand its business in Mexico. The company has to recruit an expert manager by applying the
ethnocentric approach. The HR of the company has to recruit other staff, like production
manager, sales manager by using the polycentric approach. To set up a new business in Mexico,
Spark New Zealand has to develop the communication plan.
Data and research:
Spark New Zealand Limited provides telecommunication services in New Zealand. The
CEO of this company is Simon Moutter. The revenue of this company is NZ$3,531,000,000 in
2015. The operating income of this company is NZ$962,000,000 in 2015. The total assets of this
company are NZ$3,206,000,000 in 2015. Spark New Zealand’s total equality is
NZ$1,778,000,000 in 2015. The number of employees working in this company is 5562.
Headquarter of this company is situated in Auckland ("Spark NZ", 2019).

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Refferences:
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
Conway, P., &Meehant, L. (2013). Productivity by the numbers: The New Zealand
experience.New Zealand Productivity Commission, TeKōmihanaWhaiHua o Aotearoa.
Harris, A., Day, C., Hopkins, D., Hadfield, M., Hargreaves, A., & Chapman, C. (2013). The
changing context of leadership: research, theory and practice. In Effective leadership for
school improvement (pp. 19-35). Routledge.
Hill, N., &Brierley, J. (2017). How to measure customer satisfaction.Routledge.
Mahmood, M. (2015). Strategy, structure, and HRM policy orientation: Employee recruitment
and selection practices in multinational subsidiaries. Asia Pacific Journal of Human
Resources, 53(3), 331-350.
McKeever, M. (2016). How to write a business plan.Nolo.
Mexico - Hofstede Insights. (2019). Retrieved 25 August 2019, from https://www.hofstede-
insights.com/country/mexico/
New Zealand - Hofstede Insights. (2019). Retrieved 25 August 2019, from
https://www.hofstede-insights.com/country/new-zealand/

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Ovando, C., &Olivera, E. (2018).Was household internet adoption driven by the reform?
Evaluation of the 2013 telecommunication reform in Mexico. Telecommunications
Policy, 42(9), 700-714.
Piekkari, R., Welch, D., & Welch, L. S. (2014). Language in international business: The
multilingual reality of global business expansion.Edward Elgar Publishing.
Rego, L. L., Morgan, N. A., &Fornell, C. (2013). Reexamining the market share–customer
satisfaction relationship. Journal of Marketing, 77(5), 1-20.
SanuriMohdMokhtar, S. (2013). The effects of customer focus on new product
performance. Business Strategy Series, 14(2/3), 67-71.
Spark NZ. (2019). Retrieved 22 August 2019, from https://www.sparknz.co.nz/
Wilson, A., Zeithaml, V., Bitner, M. J., &Gremler, D. (2016). Services marketing: Integrating
customer focus across the firm.