What Type of Cultural Differences Would Affect Coe’s Business Model in Mexico and How Would They Affect It?

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Date Submitted: 01/18/2016 08:27 PM

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Here are the questions to choose from for your first post:

What type of cultural differences would affect Coe’s business model in Mexico and how would they affect it?

What specific challenges does this pose if they decide to expand into Mexico?

What capabilities and assets would Coe’s need in order to successfully expand into Mexico? Do you think they have these, or would they be better advised against this expansion?

What type of cultural differences would affect Coe’s business model in Mexico and how would they affect it?

Coe’s venture into Puerto Rico a few years before had failed miserably, he was forced to close the pilot store after one year. There are many risks revolving around expanding abroad. There are too many cultural differences for the same business model to work in Mexico. Collections will be an issues as customers might fail to give their payments on time and required initial investment will be high. There are also other major issues like language barriers that might effect in basic communications between the customers and the employees. In general, most people in the U. S or Canada are highly uncomfortable with class distinctions, Mexicans, by contrast, are much more comfortable with these social realities. Mexicans, therefore are more comfortable than their counterpart’s north of the border with existing class stratification into powerful positions and workplace distinctions (A. Victor, 2015).

Mexico being uniformly roman Catholic nations, conflicts of religion in the workplace is negligible since Catholicism is so widely shared. These workers will also take days off due to certain events taking place through out the year. Mexico traditionally has been more hesitant toward the use of technology than the U.S and other control cultures. Mexicans, particularly in nonurban areas are likely to see themselves as subject to the forces of nature around them than as controllers of that environment (A. Victor, 2015).

Many Mexican and...