Guanajuato, Mexico

Enjoy the sights from Guanajuato, Mexico

Water and other important matters...

My quick trip to Mexico is now complete. It was an interesting, energizing and at times, depressing week.

Here are a few items that I thought were worth mentioning:

1. Not even Mexicans drink their water- everyone gets 4 -5 large multi-gallon water bottles delivered a few times a week. AND, it's not just that the water isn't "drinkable" it's not all that plentiful. Showers are a trickle, toliets are flushed "judiciously". Any company looking to do business in Mexico needs to understand this.

2.Education-as I suspected most Mexicans have somewhere between a Primary and High School education.

3. Baseball seems to be as popular as soccer- "football"- at least in the city I was in

El dia de los reyes

I had the good fortune to be in Mexico for a holiday- "el dia de los reyes". The tradition is that "los reyes" leave treats for the children in their shoes under the Christmas tree. The day is to commemorate when the Three Kings found Jesus in the manager.

Children here have the good fortune of receiving gifts twice in two weeks. Once on Christmas and then again on January 6th. Since many families are do not have much money, the gifts are small but are very much appreciated by the children. It was fun to see the excitement when the little ones found their shoes stuffed with candy.

I was also lucky, as I also received "treats" in my shoe :) I will post a photo later.

All in all, I was glad to have the opportunity to participate in this important holiday. I now have a greater appreciation for "el dia de los reyes".

Mismo cuento, pais diferente

How many times have we said in business "it's all about the relationship in business"? Nothing could be more true in Latin America especially in Mexico.

Today I had a director at the language school I'm attending approach me about potential partnerships for teaching students about the language, culture and business.

It's important for U.S. business people to understand that it takes time to build relationships but once those relationships have been solidified, it can be a very powerful thing.

We saw similar things when we were in Brazil. Everyone told us, "come, listen, understand and be successful".

I'm looking forward to working with this director and his staff to put together programs to help students become better global business people.

"la clave" go with the flow

In global business, we are always talking about "going with the flow". Good advice to be sure especially when something major happens. Imagine sitting with your 'host family' having dessert when suddenly you discover you're at the wrong house! Now, before anyone says "that dippy professor", this was not my fault. It was the driver who picked me up from the airport.

The most comical part of this was that I just presented the family with the "world famous" Fannie May Pixies and Meltaways. When I thought I was going to have to leave I thought "now, what, I have nothing to give the other family".

As with most things, it all worked out and I am going to stay with my family. They are very attentive and keep me talking!

Mexico, me voy!

As crazy as this may sound, I have really not spent any time in Mexico! I've been all over the world and have only been to the touristy areas of our neighbor to the south.

I'm off to Guanajuato for a week of "immersion". I'm hoping to polish my Spanish a bit more and to learn more about Mexico, its people and the culture.

Stay tuned....

Fall 2009 Global Business Team Training

Student Presentations - "Negotiating like a local"

Students try their hand at creating a “realistic” negotiation experience in a foreign country

Role Play- Doing Business in Brazil



Role Play- Doing Business in Italy

Video-Doing Business in Brazil

Skip sexual harassment training in Latin America

My final posting about my trip to Brazil is about "Sexual Harassment". We had a number of conversations with people who were in HR, Sales, Marketing and Operations about the topic of Sexual Harassment. It was fascinating to me that this should be a topic that was top of mind for most people as we talked about differences between doing business in North and South America.

As most of us who have been in business for any length of time know, this is a "routine topic" for North American companies. It mostly is a "cya" for businesses to make sure that we all go through regular sexual harassment training. It usually goes something like this: you receive annoying email after email from the HR department that you have to take this computer-based training/certification on sexual harassment or else!

I don't think that anyone in North America would consider Sexual Harassment a laughing matter. However, our counterparts who work for North American companies think that it is a little over the top. The the whole idea of not touching someone is absolutely unthinkable in a culture that is all about close relationships and touching. And so, the folks in Brazil do take the training and answer the way they know the company would like them to and then go ahead and give their colleague a big hug for accomplishing a job well-done.

Checking out the Brazilian economy

Of course, no trip would be complete with out a shopping trip. (For purely educational purposes :) A few observations:

1. Things are much more expensive here that what I thought they would be. For example, a very basic pair of leather shoes generally runs about the equivalent of $150

2. Speaking of shoes, this seems to be the most popular type of store

3. A cotton/nylon jersey for the popular soccer team costs about $125 at the cheap end. The "official jersey" was $300

Another indicator of how expensive things are- McDonald's- a Big Mac meal with a medium diet coke is about $7.00.

One would think that there would be no one out and about considering that the only 5% of the population earns more than $1500. However, this is not the case. "Todo mundo" (everyone) seems to be out and about enjoying life and spending money. I believe this goes with the "work to live" mentality so common in many places in the world as opposed to the work to live" mentality so common in the U.S. I have to say, the older I get the more I'm for the work to live path.

Hofstede and human resources

Back to one of my favorite topics, Geert Hofstede's Cultural Dimensions. I decided to focus on this after a few conversations with human resource managers over the last few days.

In Brazil, there is a ranking system that slots people into where they are in society. This ranking system appears to be based solely on income. The ranges are A - E with A being the "super rich". There is much discussion about the A-B class or upper class. Where would the A-B class go to school? What would they read? Where would they shop? Seems like a very logical question particularly for HR and Marketing professionals.

However, what continues to bother me is the "ranking" of people. What does it say to those in the C, D & E classes? Do they see themselves as having any opportunities? Do the A/B's look down on them? Although Brazil prides itself on integration on many levels, this appears to be a way to create a hierarchy.

Based on Hofstede's ranking, I guess shouldn't be surprised. Brazil is ranked a 69 on Power Distance. Power Distance is the level of comfort a society has with inequalities. The U.S has a PDI of 40. Perhaps, this is why mos t Americans call themselves "middle class" whether they earn $20k or $200k.

The difference in the power distance can also help to explain why I'm so troubled with the idea of "labeling" people based on their income. My concern is that once labeled these people may feel that they cannot change their current situation. To me, this would be akin to telling my student that s/he is no better than a "D" student and then expecting them to achieve an "A" in my class. I don't know, perhaps the lower classes will never be able to move up, however I prefer to think that the glass is half full and that there is always a chance.

Knowledge is power

Here's a tip for all companies looking to do business in another part of the world. "Know" your potential market. This sounds like the most basic of all recommendations however what we heard over the last few days how many companies really have no idea about Brazil.

What? No idea about the one of the biggest emerging markets. Yes, this seems to be the case. Here are some"classic examples":

• Brazilians speak Portuguese not Spanish
• There is more than one currency in South America. Each country has their own
• The best- driving from Sao Paola to Bogota, Colombia is not really a feasible option

So, the bottom line if you plan to do business take the time to research your market. A little knowledge can go along way.

Brazil - a place of paradoxes

My posting today is about the paradoxes that we've seen in Brazil thus far.

It is a place where a vast majority are living in poverty however most of them are doing it among people who have a vast amount of wealth. The haves and the have-nots live side by side. Although, the "haves" go to great lengths to keep the have-nots away from their property.

It is a place where all races and nationalities seem to be able to live together in peace. Inter-racial marriages are very common. However, there is a constant battle along social class lines.

It is a culture and a people known for their warmth and hospitality yet when we were talking to a director of Latin American sales for a major hotel chain she readily admits that customer service is not their thing.

The people appear to be very proud of their country yet the Brazilians that we talked to say that there is a sense of an inferiority complex.

The people we talked to say that they are "short term" in their orientation yet relationships matter and they take a long time to build.

They are proud to be the "B" in BRIC and show an optimism about the future yet they are not very quick to invest in their stock market because they recall days gone by when inflation was running rampant. In fact, approximately 70% of investors in their stock exchange are foreigners.

These are just a few of the things that jumped out at me in the first few days here.

Here I go again...

I'm packing for "winter" a winter trip to Brazil. What? you say it's only August 1st. Yes, I'm heading to Brazil for a week of "meet and greet".

Winter in Brazil is a frigid 60 - 70 degrees farenheit. Ha! Lately, we're calling that temperature summer in Chicago. I've been told that although we may think of it as early summer temperatures not to dress like it's early summer. No sandals-boo hoo. I will comply as I don't want to stick out like a sore thumb.

I'm excited to be heading to the "B" in BRIC- the big emerging economies Brazil, Russia, India and China. As a business instructor, I spend a lot of time talking about these countries specifically Brazil. It will be interesting to see it first-hand.

What are my expectations?
- I expect that the Brazilians will be excellent hosts.
- I expect that I will probably be up late into the evening talking and enjoying the company of my hosts.
-I expect that I will get a little bit more for more money certainly more than what I did in Europe.

McDonald´s factor

Ahh, the end of this trip...what a trip it has been. I´ve tried very hard to observe things from a business perspective but at times it was quite hard to do with all the sight-seeing, eating and gabbing that I did. I absolutely love to explore other parts of the world but am always so glad to come home.

My post today is about the "McDonald´s perspective". I know that in International Business we talk about The Economist´s Big Mac Index to tell whether a currency is under-valued or over-valued. I have a more practical way of putting it. I did go to McDonald´s in every major city I visited. Not necessarily because I longed for a Big Mac but because I wanted to see the similarities and differences. And, truth be told because I am a stockholder and I like to support my portfolio :)

Here is what I can tell you. If I lived in Europe McDonald´s would be a luxury not an "I´ll stop on my way to work every day for a diet coke" place. It is very expensive. For example, a small diet coke (think Happy Meal size) was €1.50 which is about $2.10- hombre this is "muy caro"! Interestingly enough, all McDonald´s were busy. Another interesting tidbit, the workers did move quickly and served with a smile. I was glad to see that this part of the brand was consistent.

Tomorrow I´m back to the "real world" and happy to do so. This has been a very good experience.

Rebajas, Rebaixes, Sconto, Discount

In whatever language, the crowd goes wild for discounts. How fortunate that I should be here in Europe during the "season of discounts". What does that mean? Well, in many places in Europe (not sure if it is everywhere) "sales" are only twice a year by law. So, imagine...Macy´s would they not be in big trouble as it seems every day I am receiving a special "deal" from them.

Now, in terms of the "deals" they are not all that especially when you factor in the 40% premium that we pay on the money conversion. To me, even without the currency conversion the prices are not all that great but the crowd seems to be shopping like they have never shopped before. This, mind you, in the midst of a crisis economico!

Interesting thing that I have noticed when it comes to buying shoes. They all put their foot into the shoe without a hose or sock!! For me, it is a little icky. Also, I was wondering why the shoes all look worn even when they are suppose to be new. It appears that they walk about the store and into the foyer with the shoe on. Thus, even a new shoe may be a bit dirty when you purchase it.

Happy Independence Day!

Happy Independence Day! I chose to say it this way on purpose. I've been thinking about what to write for today and decided to use Geert Hofstede's cultural dimensions to explain why this day is so important.

Hofstede looked at culture from a few different important dimensions including:
- Individualism/Collectivism
- Power Distance (comfort with inequality)
-Uncertainty Avoidance (risk taking)

On these three dimensions the U.S. is the highest in individualism, low on power distance (we are uncomfortable with inequality) , and are low on uncertainty avoidance therefore we will take risks. Based on these three things is it any wonder that in the U.S. one can go from rags to riches in one's life time?

To relate this to my trip-this week on the overnight train from Italy to Spain I was required to give up my passport and ticket (for what reason I'm not sure). I did receive it, as promised, one hour before the trip ended. For me, I was very uncomfortable giving up my passport. I understand that they may need to check to see who we but why did they need it for 11 hours?

To me, my U.S. passport symbolizes my freedom- to come and go as I please, to pursue my God-given abilities, to be able to speak my mind without repercussions. I have been having the time of my life on this trip but there is no doubt- I love my country and will always be proud to be an American!

Business Barcelona style

Ok, back to the concept of "entrepreneurship". I know that Americans think that we have the market cornered on entrepreneurship but I can honestly say I've seen many examples in my travels over the last week and a half. How else could we classify the gent I saw this morning on Las Ramblas dressed fully in white with top hat and whose claim to fame was posing as though he was on the toilet! For those of you who don't know, Las Ramblas is famous for people getting all geared up and then "striking a pose". This guy decided to pose on the toilet with the pot, toilet paper and newspaper! Yes, I do have a photo which I will upload as soon as possible.

Also, the bike idea is also in Barcelona. However, I must confess the Milan bikes are bigger and better!

Movin' on from Italy to Spain

Well, I've managed to make my way from the Piemonte area of Italy to Barcelona, Spain- from the big mountains to the big city.

My two days in the Piemote area were heavenly. The views unbelievable, the lifestyle nice and slow, and the hospitality incredible. I stayed at a darling B & B called Villa Favolosa. (website: www.villafavolosa.com )The owners are Americans who are also Italian citizens so you get the best of both worlds- people who are very service-oriented and also can guide you in the local ways. The accomodations were excellent and the food to die for. It is a great example of the entrepreneurial spirit.

The long train ride to Barcelona wasn't bad at all. The coach was quite and everyone slept, even me!

Ready for a day exploring the old city of Barcelona. Checking out some of Gaudi's works.