Trying To Do Business In Mexico, Gringo Style Case Study

Trying To Do Business In Mexico, Gringo Style - Case Study Example These objectives primarily focus on enhancing the cost-efficiency of the company by reducing labor costs. Upon his arrival to Mexico with his family, Ted is greeted by his assistant plant manager and cultural mentor, Manuel and he promises Ted that the plant would become operational within two weeks. Eventually, the operations at the plant commence five weeks after the scheduled date which causes Ted to lose his trust in Manuel while, Manuel considers him too insensitive and impatient. As tensions between Ted and Manuel continue to grow, the efficiency levels at the plant continue to drop. Believing in the idea that cultural issues share no association with efficiency, Ted proposes three recommendations to address the problem including the dismissal of low performing workers and the implementation of an incentive-based pay system and a participative approach to decision-making. When the proposed schemes do not yield desired results, Ted realizes that Manuel did not fire five of the w orkers that should have been dismissed, and as a result of the differences in the labor laws of Mexico and US, the workers that were dismissed would be entitled to a severance pay. Feeling frustrated, Ted contemplates his future at the company and thinks that perhaps his criticisms of Mexican culture were indeed valid. 2. Discussion Questions 2.1 What mistakes did Ted make in his management of SterMexicana? The most fundamental mistake that Ted made in his management of SterMexicana is related with his convenient assumption and misguided belief that falsely led him to believe that his managerial expertise would transfer successfully to Mexico without the emergence of any significant issues. Therefore, during his time as the plant manager of the firm, Ted failed to acknowledge the cultural dimension of management in the formulation of appropriate strategies to address business problems, in his dealings with the company’s suppliers, and also in the decision-making process. For example, when Manuel showed interest in introducing Ted to the culture of Mexico, his reluctance in doing so was evident by his impatience to discuss more significant matters that were related to the business. By refusing to understand the dimensions of the country’s national culture, Ted ultimately developed recommendations and strategies which could not yield ideal results for the business. This observation corresponds with the analysis of Newman and Nollen who state that the financial performance of an organization is dependent upon the extent to which the management practices of a firm are in congruence with the national culture (753). When Ted did not demonstrate an interest in Manuel’s discussions of Mexican culture he was in fact ignoring valuable information that could have helped him in achieving his goals and formulating strategies for reducing SterMexicana’s labor costs. As suggested by Marchese in comparison with a highly individualistic U.S culture, the culture of Mexico is characterized by the presence of collectivism which is an aspect that emphasizes upon the significance of maintaining and valuing social relationships as members of a group (131). Ted’s implementation of a flexible working hours plan contradicted with this element of Mexico’

Corporate Social Responisbility Research Paper Example | Topics and Well Written Essays - 1000 words

Corporate Social Responisbility - Research Paper Example This notion of corporate social responsibility has been heavily debated on in recent years so much so that researchers have called into question the existence of the â€Å"social† aspect in â€Å"corporate social responsibility†. Advocates of CSR have increasingly defined it in terms of human rights, ethics, closures of plants, relations with employees and the environment. A more comprehensive definition of CSR and sustainability encompasses all three foundations of sustainability, including the people, economy and the environment. If only the social and environmental development is taking place that is referred to as â€Å"bearable† (Chick and Micklethwaite 83). If only the social and economic development is taking place, that is referred to as â€Å"equitable†, whereas, if only the environmental and economic development takes places, that is referred to as â€Å"viable† (Chick and Micklethwaite 83). CSR is achieved only when all three dimensions d evelop simultaneously; that is, it is bearable, equitable and viable (Chick and Micklethwaite 83). The very mention of CSR calls into question the reason for business’ existence. Whether or not businesses should be responsible for the society and environment remains questionable since the primary purpose of a business is to satisfy its shareholders and generate profits. This is the line of argument used by classical theorists who are against the practice of CSR. According to Milton Friedman, the only social responsibility of a corporate entity is that of doing business in an open competitive marketplace that is free of deception and any fraud by utilizing its resources in order to increase profits (Friedman 6). The classical advocates further maintain that managers are mainly responsible for catering to shareholders’ interests by enhancing financial returns to the business. Practicing CSR may lead to the dilution of economic productivity since the investments made in C SR may be irrecoverable (due to the non-profit nature of CSR activities) (Friedman 6). However, advocates of CSR base their arguments in favor of the same for various reasons. Usually, companies engage in such disclosure for two main reasons: achieving a competitive edge by enhancing employee morale and goodwill and pressure by external stakeholders such as governments, environmental agencies etc. Not adhering to the latter’s demands would mean a loss in company’s goodwill and, hence, profits. This leads us to the argument related to stakeholder view used by proponents of CSR. This view was conceptualized as early as in the 1970’s by Freeman who described organizations in terms of the managers’ relationships with stakeholders (Garriga and Mele 59). A stakeholder is typically any individual entity or group that has an impact on, or is affected by the corporation’s goals and objectives (Garriga and Mele 59). Companies can reconcile the conflicting ob jectives amongst stakeholders by engaging in a successful CSR dialogue with them in which the company gives something of value (such as a public service) to a significant community in lieu of popular support from groups and individuals within the environment. Advocates of CSR further state that firms are required to exercise duty of care when dealing with both primary and silent stakeholders (such as the community) (O’Riordan and Fairbrass 748). By recognizing the fact that shareholders’ interests cannot be satisfied without satisfying (to some degree) the