BAYLEAVES TEA COMPNAY

SWEDISH FORMALITY
OR
MEXICAN CASUALITY?
A REPORT ON INTERNATIONAL EXPANSION

PREPARED FOR: INDIANA JONES, VICE PRESIDENT,

INTERNATIONAL EXPANSION
PREPARED BY: Benjamin Marlow
DATE: 21 April 2021

EXECUTIVE SUMMARY
 BAYLEAVES TEA COMPANY INTERNATIONAL EXPANSION

This report details the choice between opening a new office in Sweden or Mexico. The report’s
findings include the detailed differences between intrinsic and extrinsic cultures of both countries
and how we may adapt to them as a company.
Both Sweden and Mexico have family and humane orientations that suit our company, but
Mexico has several areas of superiority for a company with our values.
The conclusion is that either country is a good choice for expansion, however, Mexico has many
less formalities and a more forgiving corporate culture. Additional recommendations include:
 Providing Visa reimbursement for employees willing to sign for more than 4 years.
 Providing all the necessary Visa information for those employees with shorter terms.
 Begin scouting for interpreter to assist in business meetings.
 Hiring a consulting firm to help draft a diversity course for employees.
 Assuring all current employees this is an expansion and there will not be layoffs.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY.................................................................................................2
INTRODUCTION...............................................................................................................3
BACKGROUND.................................................................................................................3
SWEDEN AND MEXICO: THE COMPARISON.............................................................4
Requirements to Enter the Country..........................................................................4
Languages................................................................................................................4
Religious Considerations.........................................................................................5
Greetings..................................................................................................................5
Dining Etiquette.......................................................................................................5
Special Considerations When Visiting Someone’s Home and Gift Giving............6
Conducting Business................................................................................................6
Ease of Doing Business...........................................................................................6
Corruption................................................................................................................6
CULTURAL CONSIDERATIONS: GLOBE STUDY COMPARISONS.........................7
Decision Making: Egalitarianism versus Individualism..........................................7
Power Distribution: Egalitarianism versus Hierarchical..........................................7
Performance Orientation..........................................................................................7
Future Orientation....................................................................................................7
Assertiveness............................................................................................................7
Humane Orientation.................................................................................................7
Gender Egalitarianism.............................................................................................7
RECOMMENDATION.......................................................................................................8
REFERENCES....................................................................................................................9

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INTRODUCTION

The purpose of this report is to detail countries that may serve as possible expansion sites for
additional offices of BayLeaves Tea Company. Research was conducted on many intrinsic and
extrinsic values of two countries to determine which would be the best option. This report will
go through things such as entry requirements, cultural values and even the atmosphere in the
business industry.

The first country researched was Sweden, the culture is very business professional and there is
significant ease of travel to Sweden and surrounding nations. There’s a possibility our brand
would gain strong reputation for having offices here. Secondly, Mexico was also researched as a
possibility. The culture and ease of travel are even more laid-back in this country and the culture
provides a more laid-back business industry than Sweden.

The findings of this report will also include many quality of life things such as proper etiquette
between individuals and special customs that foreigners should be aware of. This report will
NOT focus on anything related to any employee’s personal relationships that may develop in
either country and is strictly tailored towards the success of BayLeaves Tea Company.

BACKGROUND

BayLeaves has always strived to form a culture of understanding and genuine care for others.
Our workplace culture is characterized by the friendliness of our employees and an environment
where everyone is comfortable leaving their doors open.

We initially began as a small company and have always tried to keep this feeling in our
workplace culture. We are very group oriented and high in collectivism. We have a very equal
power distribution and want to make sure all of our employees have a say in decisions regarding
the business, especially ones that will affect them directly. BayLeaves also believes in direct
communication. Functioning businesses are built on a clear and concise foundation and is
successfully operated by employees that can communicate clearly with each other and customers
alike.

SWEDEN AND MEXICO: THE COMPARISON

Requirements to Enter the Country

To enter Sweden and Mexico, we need to have passports. For stays longer than 90 days in
Sweden, a residency permit would be required (U.S. Department of State, Sweden, 2020). For
Mexico, a Temporary Resident Visa would be required for periods of time less than 4 years, then

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Permanent Resident Visas would be required (U.S. Department of State, Mexico, 2019). Our
U.S. passports will need to have a blank page for stamping for both countries.
Analysis: We need to prepare the following:
1. A list of possible employees and their passport statuses.
2. Help employees apply for passports and establish a reimbursement program.
Languages
Unfortunately, the countries researched in this report have primary languages other than English.
Sweden’s primary language is Swedish and fortunately, many people in Sweden speak English
(Swedish culture, 2017). This will make locating translators and possibly teaching employees
Swedish significantly easier than if English was not familiar to them.

Being adjacent to the United States, Mexico also provides us an opportunity for translators.
Some of our employees might even have knowledge on Spanish already, which is the primary
language in Mexico (Mexican culture, 2018).
Religious Considerations
Lutheran Christianity is the primary religion in Sweden (Swedish culture, 2017). Most people are
practicing Lutherans, and this is something we should consider for our employees if/when we
add an office in Sweden.

Alternatively, most citizens in Mexico practice Catholicism (Mexican culture, 2018). Many of
our employees may already be familiar with Catholicism and an office in Mexico would likely
require less religious diversity training.
Greetings
Swedish greetings always consist of a firm handshake and introductions. This is very important
to Swedish culture no matter how casual the setting is. (Swedish culture, 2017). The dominant
individual of each party is generally the first to speak and is the one who leads the introductions;
this includes men and women (Swedish culture, 2017). This etiquette is likely to be slightly
different with the COVID-19 pandemic.

Greeting etiquette in Mexico is significantly different with more casual interactions. Smiling and
genuine eye contact is to be expected and a more casual greeting such as a nod is perfectly
acceptable in casual circumstances (Mexican culture, 2018). Unlike Sweden, Mexican culture
dictates you should not shake a woman’s hand unless she offers it (Mexican culture, 2018). The
casual nature of Mexican greetings is unlikely to be altered by COVID-19.

Dining Etiquette
Both Sweden and Mexico use the same type of silverware as the United States for most meals.
Similarly, the seating order in both countries for business and casual settings is the same; the
individual in charge sits at the head or in the middle of the table (Mexican culture, 2018;
Swedish culture, 2017). One difference, however, is that often the oldest person in the home
setting is considered the individual in charge in Mexican culture (Mexican culture, 2018).

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Both cultures see it as polite to eat all the food you were given and try as many different dishes
as possible. Afterwards, complement the host. It should also be noted that in more casual
settings, Mexicans eat with their hands most of the time (Mexican culture, 2018).

Special Considerations When Visiting Someone’s Home and Gift Giving

In both cultures, it is polite to wait to be seated and to try every dish served. Whenever possible,
do not leave food on your plate (Mexican culture, 2018; Swedish culture, 2017). This will be
particularly useful etiquette to know as we start getting familiar with our foreign counterparts in
whichever country we choose.

Generally speaking, Mexican culture dictates that gifts should not be seen as a necessity
(Mexican culture, 2018). However, it should be noted that gifts should be transferred only along
gender lines as to not be seen as a romantic gesture in Mexico (Mexican culture, 2018).

Gifts are also acceptable but not expected in Swedish culture. Something to keep in mind is that
gifts from areas of Sweden other than that of the host may be seen as an insult because the
Swedish people are very proud of their hometowns (Swedish culture, 2017).

Research suggests that gifts should be used sparingly in both countries and we should be mindful
of the gender and hometown caveats in each culture.

Conducting Business
Appointments in Sweden are made generally several weeks in advance and are usually checked
up on for confirmation several days before the actual meeting (Swedish culture, 2017).
Alternatively, many business meetings in Mexico are more informal and should be confirmed
many times before the actual appointment date to continually convey interest in meeting one’s
counterpart (Mexican culture, 2018).

Swedish culture dictates that you should be on time or early for every meeting, especially if you
are a guest or foreigner (Swedish culture, 2017). Meetings in Mexico are more casual, expecting
the guests to be on time but not necessarily early. Mexican culture also allows the host of the
meeting to be late on occasion without a negative stigma arising (Mexican culture, 2018).

Business attire in Sweden is expected to be the same for women as it is for men. If our female
employees were to show up to a meeting “dressed to impress” rather than business professional,
our Swedish counterparts would be very unimpressed to say the least (Swedish culture, 2017).
Attire expectations across genders is difficult to estimate in Mexico because women generally
are not involved with the business side of things (Mexican culture, 2018). Research suggests that
out female employees could dress however they please in Mexico but notes that professional
attire may help our Mexican counterparts take our female employees more seriously.
There is no set time for business cards in Mexico (Mexican culture, 2018). They generally
distribute them whenever is most convenient. In Sweden, the appropriate time for business cards
is always at the beginning of meetings (Swedish culture, 2017).

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It should also be noted that Mexicans treat verbal agreement very seriously (Mexican culture,
2018). A verbal agreement to any plan or business proposal is considered as good as writing a
formal letter of acceptance. In Sweden, however, they will directly tell you in a formal manner,
sometimes writing, that they are interested in accepting your proposal (Swedish culture, 2017).
In Mexico, our company may need an interpreter to determine what our counterpart is meaning
since they are so casual. We will not have this need in Sweden. We should also consider an
interpreter for cultural differences with any new employees in the offices. Mexico defiantly suits
our family-oriented business better despite the few drawbacks from the country’s informalities.
Ease of Doing Business
Our company will have no problem doing business in Mexico or Sweden. The only setback in
Mexico is that interest must be conveyed several times top prospective business partners to make
sure they understand we are genuinely interested (Mexican culture, 2018). This could lead to
higher internal costs and much more time spent with partner/customer interactions. Doing
business in Sweden has drawbacks as well. There are many formalities which will take time for
our employees to adjust too. Additionally, Swedish corporate culture is sharp and sometimes
unforgiving with its formalities and expectations (Swedish culture, 2017).
Corruption in Each Country
Despite Sweden and Mexico could not be more different in terms of corruption. Sweden has
historically low corruption rates due to its many safeguards (Corruption perceptions INDEX
2020 for Sweden, 2020). These safeguards could be seen as hoops to jump through that require
extra time and effort from our company. Mexico, on the other hand, has a very high corruption
rate (Corruption perceptions INDEX 2020 for Mexico, 2020). This could make doing business
there difficult as our competitors may not be held to the same standards that we are.

CULTURAL CONSIDERATIONS:
GLOBE STUDY COMPARISONS

Decision Making: Collectivist (Group) versus Individualism

Our company focuses more on collectivism with a medium high rating in the category. Both
Sweden and Mexico score relatively high in the collectivist rating (Sweden, GLOBEProject,
2020; Mexico, GLOBEProject, 2020). We will not have to make many adjustments to how we
govern employees or how we deal with customers in either setting. This area will be a huge
advantage for our company.
Either country values the collective mindset we have at BayLeaves. Both countries have an
orientation to look after one another and move forward as a group instead of just individually.
Not only is this exceedingly rare in the business world, but it also aligns with our company’s
values.
Power Distribution: Egalitarianism versus Hierarchical

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As a company with an egalitarian structure, we would not work much better with either country,
as they both are structured in a medium high hierarchal structure (Sweden, GLOBEProject, 2020;
Mexico, GLOBEProject, 2020). Both countries value power structures and have great respect for
those above them. Our company would not serve to benefit more in one country than the other
from this point of view.
Our company will have to be aware of this different power structure, as we value a more
egalitarian structure. The alternative structure will provide unique challenges as it relates to
competition and dealing with the government and regulators.
Performance Orientation
Like power distributions, neither country offers a clear advantage in their performance
orientation. Both Mexico and Sweden have medium-high performance orientations and any
business partners we may find would likely be hard workers. (Sweden, GLOBEProject, 2020;
Mexico, GLOBEProject, 2020).
Future Orientation
While both counties have medium future orientations, there are several key differences. The
future orientation in Sweden is more centered towards long term goals and multiple agendas at
once (Sweden, GLOBEProject, 2020). Mexican future orientation is centered more around
accomplishing the immediate goals of the organization (Mexico, GLOBEProject, 2020). Both
orientations have their pros and cons, so neither is particularly outstanding for our company.
Assertiveness
With assertiveness, both countries are relatively assertive. The difference is that Swedish culture
is more direct in their assertiveness (Sweden, GLOBEProject, 2020). If a Swedish associate does
not like your proposal, they will let you know directly. Mexican culture tends to be more indirect
with assertiveness. They may make up their mind and act out how they feel, but Mexicans are
usually not direct or confrontational though they may be firm in their decisions (Mexico,
GLOBEProject, 2020).
Humane Orientation
Both Sweden and Mexico have high humane orientations for varying reasons. Swedish and
Mexican cultures both place a strong emphasis on family values (Sweden, GLOBEProject, 2020;
Mexico, GLOBEProject, 2020). Either country would be an excellent option from this point of
view as they both match our company’s values and share our vision of a family friendly business
model.
Gender Egalitarianism
For higher gender egalitarianism, we should consider Sweden for our new offices. Swedish
culture has a strong emphasis on equal opportunities and strict punishments for discrimination of
any kind, including gender based. (Sweden, GLOBEProject, 2020). Mexico claims to be a
country of equal opportunity, but women are represented in much lower numbers across any
given industry (Mexico, GLOBEProject, 2020). As a company that values high gender
egalitarianism, Sweden should be a serious consideration.

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RECOMMENDATIONS
I highly recommend that we make our first international move to Mexico. Our family values and
ambition to grow but stay close-knit with a family atmosphere will thrive in a country with
similar values. This country is Mexico.

Additionally, I suggest we strongly consider the following:

 Provide Visa reimbursement for employees willing to sign for more than 4 years.
 Provide all the necessary Visa information for those employees with shorter terms.
 Begin scouting for interpreter to assist in business meetings.
 Hire a consulting firm to help draft a diversity course for employees.
 Assure all employees that this is an expansion and that there will not be layoffs.

REFERENCES

Corruption perceptions INDEX 2020 for Mexico. (2020). Retrieved April 21, 2021, from
https://www.transparency.org/en/cpi/2020/index/mex

Corruption perceptions INDEX 2020 for Sweden. (2020). Retrieved April 21, 2021, from
https://www.transparency.org/en/cpi/2020/index/swe

Mexican culture. (2018). Cultural Atlas. https://culturalatlas.sbs.com.au/mexican-culture

Mexico. (2020). GLOBE Project. https://globeproject.com/results/countries/MEX?

menu=country#country

Sweden. (2020). GLOBE Project. https://globeproject.com/results/countries/SWE?

menu=country#country

Swedish culture. (2017). Cultural Atlas. https://culturalatlas.sbs.com.au/swedish-culture

U.S. Department of State. (2019). Mexico. Travel.State.Gov.

https://travel.state.gov/content/travel/en/international-travel/International-Travel-
Country-Information-Pages/Mexico.html

U.S. Department of State. (2019). Sweden. Travel.State.Gov.

https://travel.state.gov/content/travel/en/international-travel/International-Travel-
Country-Information-Pages/Sweden.html