CCM: Singapore and Mexico Business - Cultural Management Issues

This presentation provides a comparative analysis of cross-cultural management between Singapore and Mexico, highlighting key cultural differences, value systems, and communication styles. It examines the impact of Confucian and Catholic religious influences on business practices in each country...Read More

Name:
Unit:
Date:

Cross Cultural Management
Singapore and Mexico

Introduction
• Republic of Singapore
• Capital City: Singapore
• Surface Area: 719 Km2
• Population: 5612000
• Currency: Singapore dollars
(1.5266=1 EUR)
• Religion: Mostly Buddhism
• Languages: English, Chinese,
Malays, and Indian
• United Mexican States
• Capital City: Mexico City
• Surface Area:1964375 km2
• Population: 123518000
• Currency: Mexican Pesos
( 21.4447MXN=1EUR)
• Religion: Mostly Christians
• Languages: Spanish

Cultural differences
• Singapore
• Important definition: Confucian concepts
of are dominant in the country.
• Most Popular Sport: Cricket, Soccer,
Basketball and Golf
• Clothing: Long sleeve shirt and a tie is
not compulsory while women wear light-
weight attire.
• Important facts:
– GDP per capita 57714.30 USD (2017).
– Chinese and Indian Singaporean are more
profit oriented compared to Malays
– Lowest levels of corruption in public sector
– Gift giving is discouraged. It viewed as bribe
(countryeconomy.com, 2018)
• Mexico
• Important definition: Catholic religious
concept dominant the country’s
culture and practices.
• Most popular sport: Football, Baseball,
Bull fighting, Mesoamerican ballgame
• Clothing: Men wear ties while women
wear formal business attires.
• Important Facts;
– GDP per Capita is 9319 USD (2017).
– High level of corruption in the public
sector
– Gift giving is highly accepted
(countryeconomy.com, 2018)

Value System
Singapore
• Harmony
• Respect
• Care
• Integrity
• Mixed religions.
Singaporeans dislike taking
about their religion.
Mexico
• Trust
• Close Relationship with
family
• Over 90% of the population
are Christians and over 80%
are Catholics. Religion
impacts how Mexican
engage, build families, work
days and get married.

Direct Vs Indirect Communication
Singapore
• There is indirect communication. They pay
attention to posture, expression, and tone
• Speaking loudly is rude.
• English is the official business language. English
is spoken with Singaporean accent and there is
foreign influence.
• No close physical contact for stranger. Only
reserved for close friends.
• Pointing by index figure is viewed as rude.
• Silence is purposeful and important part of
communication.
• It considered offensive and disrespectful to
touch someone’s head (Wu and Ang, 2011).
(Cultural Atlas, 2019).
Mexico
• Mexicans are indirect communicators.
• There is use of diminutives language style
when conveying a meaning in more
affectionate or softer way.
• English is spoken with Spanish accent but
the official business language is Spanish.
• There is prolonged eye contact.
• Stand too close to one another when
talking.
• There use of excessive arms and hands
gestures through conversation.
(Cultural Atlas, 2019).

Scenario 1.
• The GIC want to invest in
Mexico’s energy sector
through Pemex.
• The GIC targets Pemex
Corporation following the
legislation reforms on energy
in Mexico.
• The meeting to be held in
Mexico.
(Ft.com, 2018)

Recommendations for Scenario 1
• Arrive in the meeting early
for good impression.
• Allow small talks to precede
especially when a serious
decision has to be made.
• The meeting might be very
passionate and emotional
but that should not be
considered unprofessional.

Leadership Style
Singapore
• Autocratic style of
Leadership
• Leaders decision is final and
involves a lot of
consultation.
• Attitude towards managers
is formal
• There is close monitoring of
employees.
Mexico
• Autocratic leadership style
• Decision making is highly
hierarchical
• There is strong
management employee
relationship based on
loyalty and little supervision
is required.

Scenario 2.
• Singapore's wealth fund GIC teams up with
Mexican based Compass Group and CIM
Group to operate and develop rent multi
family buildings in Mexico.
• What if the Mexican make a decision
without having to consult Singaporeans.
• The Singaporeans may not directly
disagree with the decision and it proposals
to avoid being interpreted as rejecting.
• Singaporeans may not like challenging the
authority.
(IPE, 2018)

Recommendations for Scenario 2
• The meeting should be
calm and participates
polite.
• Don’t fill silence periodic
moments as it time for
Singaporeans to
contemplate what is said.
• Encourage Singaporeans
to ask questions.

Hofstede’s Dimensions of Culture
Comparison

Hofstede’s Cultural Dimension
Singapore
• Power distance: Power is centralized.
Employees expect to be told everything to
do, managers depend on bosses and rules
• Individualism: A collective society and
people belong to groups and group
harmony has to be maintained.
• Masculinity: A more feminine society with
softer aspects of culture.
• Uncertainty avoidance: Low risk takers and
people choose to abide to many rules.
• Long-term orientation: There is cultural
support for long term.
• Indulgence: There is no preference for
indulgence (Shi, and Wang, 2011)
Mexico
Power Distance: Hierarchical society and people
accept hierarchical orders.
Individualism: collective society with close long term
commitment to relationships.
Masculinity: Mexico is a masculine society and
managers are assertive and decisive with emphasis
of competition, equity, and performance.
Uncertainty Avoidance: There is high preference for
avoiding uncertainty.
Long term orientation: Mexican culture is normative
and there is great respect for traditions.
Indulgence: There is definite tendency for indulgence
and exhibit high tendencies to enjoy life and be
optimistic.
(Hofstede Insights, 2019).

Role of Culture in International Business
Context
• Culture has a role in international business context and
has a role in how human resources are;
– Recruited,
– Retained,
– Motivated, and
– Promoted
• The societal culture impact businesses as a contingent
factor by;
– Determining how relationships are build
– Determining how behavior in business
– Determining how communication is done in a business.

Impact of Culture on Management and effect
on HR Strategies
• Culture impact management and other business
functions in;
– Decision making process either hierarchical or
centralized.
– Time taken to make a decision.
– The negotiations process and consultations to seal a
deal.
• Culture impacts the following HR Strategies;
– Motivation strategies
– Recruitment, retention and promotion strategies.

Conclusion
• Singapore and Mexico cultures are different
that has impact on management. Both
cultures are majorly influenced by dominant
religion. Singapore is influenced by Confucius
while Mexico is influenced by Catholic
Christian believe. It therefore important to
understand different cultures to formulate
effective HR Strategies for effective
management.

References
• Countryeconomy.com. (2018). Country comparison Mexico vs Singapore 2019. [online] Available at:
https://countryeconomy.com/countries/compare/mexico/singapore [Accessed 24 Mar. 2019].
• Cultural Atlas. (2019). Mexican Culture. [online] Available at: https://culturalatlas.sbs.com.au/mexican-
culture [Accessed 24 Mar. 2019].
• Cultural Atlas. (2019). Singaporean Culture. [online] Available at:
https://culturalatlas.sbs.com.au/singaporean-culture [Accessed 24 Mar. 2019].
• Ft.com. (2018). GIC targets investments in Mexico after energy reform | Financial Times. [online] Available at:
https://www.ft.com/content/8a681a42-dce9-11e3-ba13-00144feabdc0 [Accessed 27 Mar. 2019].
• Hofstede Insights. (2019). Country Comparison - Hofstede Insights. [online] Available at:
https://www.hofstede-insights.com/country-comparison/mexico,singapore/ [Accessed 24 Mar. 2019].
• IPE. (2018). Singapore’s GIC, CCLA to develop multi-family buildings in Mexico. [online] Available at:
https://www.ipe.com/news/singapores-gic-ccla-to-develop-multi-family-buildings-in-mexico/
realassets.ipe.com/news/singapores-gic-ccla-to-develop-multi-family-buildings-in-mexico/
10023475.fullarticle [Accessed 27 Mar. 2019].
• Shi, X. and Wang, J., 2011. Interpreting hofstede model and globe model: which way to go for cross-cultural
research?. International journal of business and management, 6(5), p.93.
• Wu, P.C. and Ang, S.H., 2011. The impact of expatriate supporting practices and cultural intelligence on cross-
cultural adjustment and performance of expatriates in Singapore. The International Journal of Human
Resource Management, 22(13), pp.2683-2702.