BUMGT5903

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Nov 24, 2024

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Introduction This project report is based on the given scenario of Mahindra and Mahindra Company. Incorporated in Mumbai, Mahindra & Mahindra Limited manufactures automobiles worldwide. In India, Mahindra & Mahindra, the group's leadership company, dominates the utility vehicle and tractor markets[ CITATION Mah22 \l 16393 ]. As per the given scenario, manager at Mahindra tractor’s Mohali branch is supposed to join the business trip with finance team to take a visit of manufacturing operations in America. Moreover, this trip will also include visit manufacturing equipment subsidiary in Mexico and Brazil. This project report also explain the nature of countries for business expansion and modes of expansion for Mahindra and Mahindra. Therefore, this report will provide insights into the culture and business environment of both countries. Mexico Mexico's economy ranks as the 15th largest in the world and is a "free market" economy that is open to both foreign investment and commerce. Mexico as a result has a very diverse economy, cutting-edge sectors, and a sophisticated financial industry[ CITATION Mor19 \l 16393 ]. Many global corporations, like Mahindra & Mahindra Company, are shifting their manufacturing activities to Mexico for a variety of reasons. Mexico's closeness to the United States, lower labour prices, and highly educated workforce are just a few of the advantages. A strong hierarchy, close relationships, and loyalty are the hallmarks of Mexico's business culture. As opposed to the United States and Canada, junior employees are not expected to provide input. In Mexico, there are still up to a hundred languages spoken by Native Americans, but none of them dominates[ CITATION Lóp16 \l 16393 ]. The majority of native Spanish speakers in Mexico also speak English. There are a number of Native American languages that are important, including Nahuatl. One-fourth of the population of this country are Native Americans, who speak English as their primary language. Brazil Brazil is one of the top 5 automotive markets in the world, but Mahindra & Mahindra (M&M) has decided to withdraw from that market. Brazil also has a sizable and diversified geographic area, making it the perfect place for economic enterprises and agricultural production[ CITATION Sae18 \l 16393 ]. Agriculture has long been a crucial national industry, and Brazil maintained its robust agricultural output despite the consequences of the

Global Financial Crisis. Brazil was ranked 124th out of 190 nations by the World Bank in 2020 for ease of doing business, while China was ranked 31st and Mexico was placed 60th. When it comes to registering property and opening a new business, Brazil came in third place[ CITATION Ber102 \l 16393 ]. Mahindra & Mahindra's decision to expand their business activities into Brazil is motivated by this. Cultural norms are a set of behaviors and ideas that are shared by members of a society or group. In many cases, cultural norms are reinforced through government, education, and family structures. Cultures expect their members to follow the norms of their culture. Patience and control are also important to Brazilians[ CITATION Jen16 \l 16393 ]. Due to the vertical organization of business in Brazil, the highest-ranking member usually makes the final decisions. The line between personal and professional relationships is often difficult to draw. Market Entry Modes Equity and non-equity are the two main categories of entry techniques in both Brazil and Mexico. Contractual agreements and exports are included in the non-equity modalities group. Joint ventures and fully owned subsidiaries fall under the category of equity mechanisms. Joint ventures and fully owned subsidiaries fall under the category of equity mechanisms[ CITATION Lin192 \l 16393 ]. There are three key differences among entry modes: how much of a risk they pose. They needed to be in charge of and commit resources. In other words, equity modes of entry refers to a market entry approach employed by MNEs that includes direct investment, wholly-owned subsidiaries, joint ventures, and joint investments[ CITATION Mar092 \l 16393 ]. Equity entrance enables enterprises to be nearer to their customers than non-equity options do. Examples of equitable means of entry are franchising and licensing. On the other hand, there are two options for non-equity modes: exporting and contractual agreements. Aside from that Contractual agreements and exports are included in the non- equity modalities group. Joint ventures and fully owned subsidiaries fall under the category of equity mechanisms [ CITATION Mar092 \l 16393 ]. Additionally, Non-equity mode of entry is an entry strategy used by MNEs to enter foreign markets through contractual agreements such as licensing/franchising, turnkey programmes, R&D, and co-marketing.

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Logical Analysis However, according to the case study of the Mahindra and Mahindra Corporation provided, exporting goods is the greatest way to reach Mexico and Brazil. So company can enter numerous markets at once using this tactic. In addition to this, Mahindra and Mahindra can designate a nearby distributor to deal with your customers. The biggest benefit of partnering with regional distributors is having access to their clientele. Exporting is the direct sale of goods and/or services in another country, according to the case study. It is possibly the most well-known and least risky way to join a foreign market. Additionally, exporting, which is the mode of entrance strategy that is strongly favoured by the majority of SMEs and start-ups, is seen as low risk and enables quick access into a new market[ CITATION Joã17 \l 16393 ]. Companies can explore overseas markets with little effort and risk by exporting their products. In addition. Mahindra and Mahindra may enter multiple markets at once because to this tactic. They can designate a nearby distributor to deal with customers. The biggest benefit of partnering with regional distributors is having access to their clientele. Countries to Enter Mahindra and Mahindra Company is able to expand its operations in both countries based on the analysis that was conducted. Having strong business cultures in both of these countries is one of the factors that attracts different businesses to set up shop in both of them [ CITATION Wor18 \l 16393 ]. As a result of the differences between the social structures of the two countries, the purpose of this argument is to examine how the business societies of the two countries operate according to their respective business cultures. Additionally, the two cultures will be compared to uncover any potential clashes between them, as well as identify any potential clashes between them. There is no doubt that the primary objectives of the Mexican American groups and the Native American groups are to facilitate communication and raise social concerns between them[ CITATION Wor18 \l 16393 ]. The type of relationships that a person has also has a direct effect on how they collaborate. Application and Analysis There are many differences in the traditions, cultures, and histories of these two countries. There is a disparity between India and Brazil and Mexico that piques my interest and makes me eager to learn more about it. Consequently, I'm eager to learn more about these countries' ties and hardworking attitudes. Through an established market presence in Brazil, companies are able to take advantage of the strategic trade agreements in the region as well as gain easy

access to other countries in the region (Oliveira, Yazdani, Cadogan, & Hodgkinson, 2017) . In addition to services, manufacturing, and mining, As a result of a diversified domestic market and a desire for foreign imports, including a favourable attitude towards technology, Brazil's domestic industries continue to succeed in exporting goods to other countries. Mahindra and Mahindra company has a good opportunity to expand their business operations in Brazil and Mexico by using different entry modes such as partnership and exporting. These two countries attracts business which deals in manufacturing and automobiles. Conclusion In the end, it can be concluded that the report has provided the in-depth analysis of two countries namely Mexico and Brazil. The manager and finance team of Mahindra and Mahindra can get help about the business culture, language and business environment of these two countries. In addition, the more of entry for business expansion are also presented in the report based on proper analysis.

References A, L. M., M, V. R., & O, C. G. (2016). Exploring cultural dimensions of Mexican project managers . Procedia - Social and Behavioral Sciences , 439 – 446. https://www.semanticscholar.org/paper/Exploring-Cultural-Dimensions-of-Mexican- Project-Miranda-Reyez/1423d5cf04e3308b40c1eca49cc3599c2d9b3e0e Bertsch, A., & Ondracek, J. (2010). The Risks and Rewards of Doing Business in Brazil: Can Brazil Escape the Fate of Greece? Mountain Plains Journal of Business and Economics, Opinions and Experiences, 11 , 23-42. https://www.researchgate.net/publication/279179743_The_Risks_and_Rewards_of_D oing_Business_in_Brazil_Can_Brazil_Escape_the_Fate_of_Greece Elo, M. (2009). International expansion through joint venture: Situations and strategies from a network perspective. 25th IMP Conference , 1-9. https://www.impgroup.org/uploads/papers/7322.pdf Lin, F.-J., & Ho, C.-W. (2019). The knowledge of entry mode decision for small and medium enterprises. Journal of Innovation & Knowledge, 4 (1), 32-37. https://doi.org/10.1016/j.jik.2018.02.001 Mahindra . (2022). KEY FACTS . Retrieved from Mahindra: https://www.mahindra.com/about-us Morales-del-Castillo, J. M., Jimenez, P. A., & Salinas, C. M. (2019). Mexico’s Tradition and Culture Entering the Digital Age: The Mexican Cultural Heritage Repository Project. Heritage, 2 (1), 356-365. https://doi.org/10.3390/heritage2010024 Oliveira, J. S., Yazdani, N., Cadogan, J. W., & Hodgkinson, I. R. (2017). The empirical link between export entry mode diversity and export performance: A contingency- and institutional-based examination. Journal of Business Research , 1-23. https://www.researchgate.net/publication/321909018_The_empirical_link_between_e xport_entry_mode_diversity_and_export_performance_A_contingency- _and_institutional-based_examination

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Saes, A. M., Costa, A. J., & Goncalves, C. (2018). Expansion and internationalization of business companies in Brazil: theoretical/methodological contributions. Journal of Evolutionary Studies in Business, 3 (2), 1-22. https://www.researchgate.net/publication/326835040_Expansion_and_internationaliza tion_of_business_companies_in_Brazil_theoreticalmethodological_contributions Williams, J. (2016). Cultural and E al and Economic F conomic Factors That Influence Br ors That Influence Brazilian Public azilian Public. All Graduate Plan B and other Reports , 1-54. https://digitalcommons.usu.edu/cgi/viewcontent.cgi? article=1790&context=gradreports Worldwide ERC. (2018). The Mexican Business Culture: What to Know About Doing Business in Mexico . Retrieved from Worldwide ERC: https://www.worldwideerc.org/news/ask-the-expert/the-mexican-business-culture- what-to-know-about-doing-business-in-mexico

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