Managing Across Cultures: West Indian Pepper Company


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We were given the task to create a business plan for a new pepper company in Grenada that would facilitate its expansion into the Mexican pepper sauce manufacturers' market.

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Managing Across Cultures: West Indian Pepper Company

  1. 1. MANAGING ACROSS CULTURES West Indies Pepper Company
  2. 2. COUNTRY ANALYSIS AND DETERMINATION OF MARKET POTENTIAL  Do not bring assets and people into Mexico unless they are essential.  According to the World Bank, Mexico ranks 12th in the world in regards to GDP and is firmly established.  The heart of most Mexican dishes constitutes three main products, which includes corn, beans and hot pepper (Chiles). (, 2013)
  3. 3. Major Pepper Producers
  4. 4. Pepper industry  It is significant element of the Mexican Economy  Pepper is the number one spice in the world with a volume of supplies around 400,000 tones per year.  Chili pepper ranked fifth in commodity cash receipt in New Mexico in 2006.
  5. 5. Political & Legal Environment  Policies introduced by the government can impact legal transactions with which we operate in.  Grenada, as a member of the commonwealth, share one supreme court, known as the Eastern Caribbean Supreme Court, which is headed by a Chief justice, and directs the laws of each member state.
  6. 6. Political and Legal Environment  Mexico’s government operates on three branches, executive, Judicial and Legislative.  The head of the Executive branch is the President, who is elected by direct popular votes, and he serves a sixyear term, but cannot be reelected.  Grenada’s government is a constitutional monarchy with a Governor general representing the Queen.  Both Grenada and Mexico can be affected by the political climate, and our company can face risk in both countries.
  7. 7. Political and Legal Environment  The West Indian pepper Company is monitoring how different political parties have different policies to direct their local economies to fiscal success.  Both Mexico and Grenada also experience labor related taxes .  The legal system in both countries thrive to protect businesses, employees and customers.
  8. 8. Social, Cultural & Behavioral Environment  Enjoy social conversations.  Analysis of the social, behavioral environment. cultural  Cultural issues in management.  Lifestyle. and
  9. 9. Mexican Etiquette  To ensure that there is minimum uncertainty in our business dealing with our Mexican counter part, translations will be done clearly and precisely  At every meeting with Mexicans, we would attempt to embrace each other.  Enjoy social conversations.  Dinning habits.
  10. 10. Mexican culture  Negotiations generally takes long.  Mexican intermediary.  “Time is not money” in Mexico.  "North Americans live to work, but Mexicans work to live!" (, 2013).
  11. 11. Mexican culture
  12. 12. The Lewis cultural model
  13. 13. Sufficient Buying power  Mexico’s economic freedom score is 67.0, making its economy the 50th freest in the 2013 index.  The Mexican economy has shown a moderate degree of resilience in the face of a challenging global economic environment.
  14. 14. Use of Technology  Internet use in Mexico has grown in recent years from 2.7% in 2000 to an increase of 29.4 % in 2010.  Convergence, Broadband and Internet(skype,email, live- conferencing)  Online orders & online bank transfers.  Telecommunications Market & Mobile Telecommunications Market. (whatsApp,BBM).
  15. 15. Adoption Curve Stage
  16. 16. Market Entry  We will be exporting and contract manufacturing for companies in Mexico.  Our company will export in large bulks to “Valentina Company”, “HERDEZ COMPANY” and “CHOLULA COMPANY”.
  17. 17. Market Entry  The market-entry technique that offers the lowest level of risk and the least market control is indirect export.  contract manufacturing; the firm’s product is produced in the foreign market by local producer under contract with the firm.  Transactions done through an intermediary agent in Mexico.
  18. 18. Market Entry
  19. 19. Business Plan This is our Vision
  20. 20. Our Plan Our finances Our Strategy
  21. 21. Implementation Strategy
  22. 22. References  (2013). Ranking of economies - Doing Business - World Bank Group. [online] Retrieved from: [Accessed: 22 Nov 2013].  (2013). Mexico - Geert Hofstede. [online] Retrieved from: [Accessed: 22 Nov 2013].  Lubin, G. (2013). The Lewis Model Explains Every Culture In The World. [online] Retrieved from: [Accessed: 22 Nov 2013].
  23. 23. Thank you, Any Questions?