Project: Activity- Research Country- Company-Product- Trade-
Ford Motors Company
Socio-cultural patterns to Business Entrepreneurship
It refers to a combination of the social and cultural perspectives in Spain. An evaluation of the socio-culture indicates that it affects the customs, lifestyle as well as values which best describe and characterize the society. In this scenario, it can exceed the language, religion, politics, material culture, attitudes, as well as the presence of any social organization. First, Spain is considered a Roman Catholic country though there are other affiliate religions. Some of the religious practices may involve processions in which the participants are in a Capirote a representation of brotherhood and fraternities. There is religious history in every small town in Spain. The grandiose building in the small cities represents the church whereas the large cities have Cathedrals which take the form of museums. The family is regarded as a social structure which offers social and financial support (Yolles, 193). However, there have been changes in the family structure in Spain as most people have fewer children.
Their form of communication is distinct. For instance, a person introduced to experts is required to shake hands. Embrace, as well as patting each other on the shoulder is typical among men once there is an established relationship. There is a strict protocol as well as the use of a formal language during business communication. They are mostly extroverts with a friendly culture. Most of the young individuals are fluent in their language and have a great understanding of English which is contrastive of the older individuals. Conversations employ a friendly tone and openness. The fear of personal space is not present among men. The strong sense of religious pride is well depicted among the people. For instance, dinner expectations in the evening should not be before 9 pm. They also have superstitions that Tuesday of 13th is an unlucky date which does not require much attention. Furthermore, they employ a stylish dressing which is conservative with elegant accessories mostly utilized among men and women. An assessment of the socio-cultural values and norms would create a favorable distribution policy based on the client relationship. Since Spaniards are tolerant of different foreigners, the establishment of the organization in Spain would not have many hitches due to the cultural patterns (Yolles, 219). This would lead to a positive working environment due to business tolerance.
Business and Economic Implications
Spanish are tolerant and open to other cultures which are contrastive of other nations. The body language of Spaniard is usually animated, which calls for avoidance in gesture use. Developing a strong sense of communication that may exceed hugs tends to create business relationships. Despite the country being tolerant, there are sensitive topics that should not be brought forth in conversation as they may affect the relationship in the long run. Setting up a business in Spain requires much evaluation. The business climate should be considered to ensure that the business operations transition positively. Some of the competitive factors that Ford should consider before entry into Spain is the global market that may include infrastructure as well as the business strategies to initiate for entry into the market. Consideration into the research and development investment as well as business flexibility is vital before entry to Spain (Turro, Alvarez, & Urbano, 393). Therefore, different business and economic implications are considered for successive entry into Spain.
The income tax favors the local and foreign organizations, and this is an added advantage to Ford Motors. However, there is a need for Special beneficial tax rates to those organizations which enter the Spain market for the first time. Findings indicate that a new incentive was adopted to prevent employees from lay off. A new policy was initiated to companies which do not reduce staff in a subsequent period of 24 months. Such companies are exempted from more comprehensive taxation of 25% at the expense of 30 percent (Rosique-Blasco, Madrid-Guijarro, & García-Pérez-de-Lema, 826). Over the last decade, the country has had a stable market size with few instances of economic regression reported.
Besides, the Spanish workforce availability has provided plenty of options in terms of labor. Statistical evidence indicates that the country has over four million unemployed individuals an estimated figure of over four million. All economic sectors have witnessed unemployment across all gender. To ensure that Ford grows there is a need for the organization to engage in economic activities that are aimed at boosting growth. Availability of skilled workers makes it easy for the organization to work with different employees who improve the organizational state. When Ford hires locals who understand the market dynamics, it can translate to growth. Ford, as a company entering a new market, should be able to understand the market dynamics (Turro, Alvarez, & Urbano, 396). Employing the workers temporarily or permanently would lead to revenue generation as well as directly benefit the organization on taxes.
Mostly, the cost of living has increased as petrol prices have gone up by almost 30 percent. The excellent weather can encourage expats to have a preference for the location. The quality of life in Spain has led to the attraction of different investors. The variety of leisure activities enjoyed in Spain would serve as a masterstroke for Ford. The clients will use the products when accessing of their recreational activities. An assessment of the average workplace environment indicates that the organization can establish itself in Spain and grow due to the availability of skilled workers and the quality of life enjoyed by the people. Ford’s production in Spain will offer competition. However, weak economic and infrastructural policies may hinder economic growth. This can affect the marketing of products as well as the availability of products to clients. Taxes are not a significant challenge to any foreigner, but infrastructural policies can affect growth. Since most of the people are found in urban areas, business growth would be facilitated. The business policies in the country give a cohesive working environment. Working with the locals will also be facilitated to boost economic growth and reduce unemployment in the country (Singh, Verma, & Rao, 153). Therefore, it reflects the type of financial measures instituted by the country to ensure that there is a positive workplace environment.
Rosique-Blasco, Mario, Antonia Madrid-Guijarro, and Domingo García-Pérez-de-Lema. “Entrepreneurial skills and socio-cultural factors: An empirical analysis in secondary education students.” Education+ Training 58.7/8 (2016): 815-831.
Singh, Bindu, Pratibha Verma, and M. K. Rao. “Influence of individual and socio-cultural factors on entrepreneurial intention.” Entrepreneurship Education. Springer, Singapore, 2017. 149-169.
Turro, Andreu, Claudia Alvarez, and David Urbano. “Intrapreneurship in the Spanish context: a regional analysis.” Entrepreneurship & Regional Development 28.5-6 (2016): 380-402.
Yolles, Maurice. “The socio-cultural dynamics of development: part 2 the cultural basis of political evolution.” Kybernetes (2019).