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Do IT this week: Layering
Business practices vary by country, culture
By Robert D. Smith
Special to the Beacon Journal
Published on Monday, Nov 30, 2009
La Borincana Foods opened in Cleveland nearly 60 years ago to serve Puerto Rican residents. The small company grew larger as the West Side Hispanic community experienced burgeoning growth.
The U.S. Census Bureau estimates that the Hispanic population is nearly 50 million — the largest ethnic minority in the nation.
Responding to population trends that included many immigrants from Latin American and Caribbean countries, Borincana reached out under new leadership to meet the needs and tastes of that market. Its product mix has changed as Latinos, representing countries that include Mexico, Chile, Colombia and the Dominican Republic, come from all over Northeast Ohio to make purchases.
''Each country has an organization and leader that represents and helps preserve its culture and traditions,'' said owner Enrique Muniz. ''I meet with them to tell them about the store.''
Every six months, a customer survey is taken to learn what people need and want, asking how the business can better serve the Hispanic and Latino communities.
The Borincana Foods case study (Latino Magazine, November 2009) shows how a small business has grown because its owners have paid close attention to the cultures and traditions of its customer base.
With the burgeoning Hispanic population, sooner or later owners and managers of small businesses will encounter a customer, competitor or vendor of Latino background. You may know your industry and product backward and forward and as well or better than any competitor, but when you greet a foreign buyer or step off the plane in a foreign market, that knowledge is not enough. You will probably fail if you don't have a practical understanding of the culture of the people.
Take Mexico, for instance. It is a representative Latino country where cultural issues are often overlooked (or mistaken for trivial) by entrepreneurs in a hurry to establish productive and profitable business relationships. There, business and other professionals take responsibility for their decisions, but the best interest of the family or group is a dominating factor in the
decision-making process.
Business in Mexico is usually conducted in a friendly and easygoing atmosphere. The decisions, however, will most likely take much longer to make than in this country. Patience more than likely will be rewarded as negotiations proceed at what seems like a slow pace. Business matters are generally not discussed during dinner and conversation kept to such things as family or beauty of the countryside.
First names are avoided in many Latino countries until trust and respect are established.
As in most countries, colors have special meanings. For example, Mexican folklore suggests that yellow flowers represent death and red flowers cast spells. It is best to get advice from locals before sending a gift of flowers. And be sure to avoid giving a gift made from silver, which is often associated with the tourist trade.
This brief article only scratches the surface of issues that pertain to one culture and are often ignored by small businesses attempting to stake a foothold in an ethnic neighborhood at home or abroad. Doing research prior to diving into the deep end of the global or local ethnic business pool can pay large dividends in building loyal customers and profitable relations.
It may be an old cliche, but it offers sound, proven advice: ''When in Rome, do as the Romans do!''
Dr. Robert D. Smith, SCORE counselor, is a Kent State University professor emeritus, management and leadership
La Borincana Foods opened in Cleveland nearly 60 years ago to serve Puerto Rican residents. The small company grew larger as the West Side Hispanic community experienced burgeoning growth.
Get the full article here.
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