Why might MNC be interested in studying the organizational culture of Mexican firms before deciding to locate there?
Explain your logic.
The internal atmosphere that is shared by members of a company and the practices that become natural and expected overtime, make up what is referred to as organizational culture.
Answer and Explanation:
Mexico is a very large country, it's population is more than three times California's. However, the main difference is density. While vast in territory the concentration in major cities introduces critical factors to understand how business is conducted. Multinational Corporations (MNC) bring a big load of information in their structures and their processes. This is merged into their organizational culture and it's important to figure out how it matches with the local country culture and even with competing firms. One way to achieve this objective is by studying companies that have successfully targeted this large and complex market. Factors like time schedules, family integration to the workplace, religion, political environment are to be carefully examined in order to provide the best fit for the MNC before locating.
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Learn more about this topic:
from Business 107: Organizational BehaviorChapter 19 / Lesson 1