PESTLE ANALYSIS FOR MADE BY MARY 1

Pestle Analysis for Made By Mary

Kaytlin McEntire

Salt Lake Community College

MGT-1060: Principles of International Business

Professor Lon Schiffbauer

August 4, 2022
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Abstract

The purpose of this PESTLE Analysis is to explore the possibilities of marketing Made By Mary

Jewelry in Canada and Mexico. Made By Mary is a jewelry company local to Bluffdale, Utah.

They carry a variety of jewelry pieces in Gold, Silver and Rose Gold with their products ranging

from $2.00-$150. Made By Mary sells primarily online to U.S. customers. Made By Mary could

benefit from expanding their business internationally. With Canada and Mexico being the two

largest trade partners of the United States, this analysis will focus on these markets. Though the

cultures are distinct in their differences, there are plenty of business opportunities throughout. In

examining political, social, technological, legal, and environmental considerations of each

country, Made By Mary will be able to better understand the possibilities of expanding to these

markets, and determine whether either Canada or Mexico may be a good fit for doing so.
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Political Considerations

Politically, Mexico and Canada are very different from one another. Canada is considered

a parliamentary democracy. As a parliamentary democracy, the Canadian government is a system

in which the citizens are able to elect representatives to a legislative parliament. These elected

officials then make the necessary laws and decisions for the country as a whole. The Canadian

government is structured to directly represent the people. Canada is ranked in the 84th percentile

for global political stability.

Similar to the United States, the political system in Mexico is a Federal Republic. This

form of political system is constitutional, and limits the powers of the central government.

Instead, states or provinces have certain degrees of self-governing power. Globally however,

Mexico ranks at 17.92% for overall political stability.

Economic Considerations

While Canada and Mexico are both mixed markets, Canada is considered to be one of the

best economies in the world. With inflation control and flexible exchange rates, the Canadian

economy is stable and resilient in comparison to other markets around the world. In 2022,

Canada is ranked 15th in economic freedoms for innovation. “The Competition Act maintains

and encourages competition in Canada to promote the efficiency and adaptability of the

Canadian economy, expand opportunities for Canadian participation in world markets while at

the same time recognizing the role of foreign competition in Canada, and ensure that small and

medium-sized enterprises have an equal opportunity to participate in the Canadian economy and

in order to provide consumers with competitive prices and product choices.” (Canadian economy

& political stability) Unemployment is relatively low, and there are plenty of opportunities for
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work. “Trade in services with Canada (exports and imports) totaled an estimated $106.3 billion

in 2019. Services exports were $67.7 billion; services imports were $38.6 billion. The U.S.

services trade surplus with Canada was $29.2 billion in 2019.” (United States Trade

Representative, Canada) Canada also encourages foreign direct investment through promoting

stability, infrastructure and global market access. The United States is currently considered to be

Canada’s largest investor.

For the most part, Mexico has pretty low levels of inflation which allows for somewhat

stability. “The increasing economic integration of Mexico with the United States during the last

three decades has benefited both countries significantly. Advantages to Mexico include greater

product specialization and efficiency, and for both nations, a wider variety of goods and services

at lower prices.”

It is important to consider that Mexico is currently in one of the worst economic

contractions since the great depression. Mexico’s competition policies are in line with

internationally recognised practices. Mexico has solid enforcement agencies with strong

investigation powers, and has a dominant spot in the context of international competition.

Mexico stands out with nearly 60% average labor availability. Covid has caused a decline in

foreign direct investment.

Social Considerations

The majority of Canadians are middle-class, or upper middle-class, with nearly 70% of

the population identifying as Christian. Parts of Canada have a French influence within their

culture.
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Unlike Canada, the majority of Mexican citizens are lower to middle class. Roman

Catholicism makes up more than 80% of the population. Some of the most brand loyal customers

worldwide. Quality, practicality and price are all very important to the people there. “Mexico is a

large market to cover, whether for distribution or for sales channels. The U.S. Commercial

Service in Mexico recommends that U.S. exporters consider splitting the country into distinct

territories rather than trying to sign a single agent or distributor with exclusive national rights.”

Technological Considerations

The technological infrastructure of Canada is considered to be very high tech. Canada is

known as one of the most technologically developed countries in the world. Canadian businesses

have a strong reputation for business ethics. “Canada has many of the same express delivery

providers as the United States. U.S. Government statistics show that nearly 2 billion of goods

and services cross the Canada-U.S. border each day. With this volume of trade, express delivery

providers are an experienced and reliable means of cross-border shipping. Transit time for

express services between most major U.S. and Canadian cities range from overnight to three

days.” Digital ambition and innovation are evident in Canada.

Mexico has been able to improve the speed of their telecommunication lines and

computer technology within recent years. The technological infrastructure of Mexico meets the
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U.S. standards. In terms of digital transformation, Mexico outperforms most of Latin America

and the caribbean. Though they meet United States standards, the technology in Canada

definitely out ranks that of Mexico by far.

Legal Considerations

The legal and regulatory climate of Canada is largely based on civil and common law

practices. Like the United States, Canada is a Constitutional state. In Canada, there are strict

codes of values and ethics that are clearly defined and outlined and easily accessible to all. Ethics

are important in all of Canada’s doings. As stated in the code, “By adhering to this Code, you

help to strengthen the ethical culture of our department and to build public confidence in the

integrity of our system of government.”

The legal and regulatory climate of Mexico have some similarities with that of the United

States. The main similarity being that the Mexican Federal Judiciary is based on a three-tier

system. While Canada has clear ethical standards outlined, Mexico has a few loosely set

guidelines. While they do not have as many standards in place, success has been found for other

businesses in being able to establish their ethical guidelines when entering the business market in

Mexico.

Environmental Considerations

Canada is well known for being environmentally friendly. In fact, Canada ranks #9 out of

73 in global green living rankings. Canada has a number of pollution prevention, environmental

emergency, and hazardous waste management policies in place. Preventing pollution, managing

toxic waste, and improving environmental and climate change are all very important to
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Canadians. In terms of sustainable development, Canada ranks 29th overall. This is significantly

higher than the U.S. who ranks 41st overall.

Though Mexico has a recent increased awareness of environmental issues, Mexico ranks

comparatively low when considering environmental policies. Air pollution, lack of clean water,

erosion, and deforestation are some of the environmental challenges that Mexico faces. “Overall,

Mexico was one of the first countries in the world to pass a specific law on climate change. The

law set an obligatory target of reducing national greenhouse-gas emissions by 30% by 2020. The

country also has a National Climate Change Strategy, which is intended to guide policy making

over the next 40 years.” In terms of sustainable development, Mexico ranks much lower than the

United States, taking the place of 74th overall.

Recommendations

From this analysis, it can be concluded that there are plenty of opportunities for growth in

the Mexican and Canadian Markets. When entering an international business market, it is

important to have an understanding and alignment of standards before diving in.

For Made By Mary specifically, the political stability, social interest, technological

advancements, legal benefits, and environmentally conscious considerations addressed for

Canada are better aligned with the needs of Made By Mary. Choosing to enter into the Canadian

market would be a great opportunity for Made By Mary’s first international expansion.

The price point and accessibility of materials in Made By Mary products are more likely

to perform well in the Canadian economy. Not to mention, already having an interested target

audience will greatly assist in the international expansion.

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