Case 1 Due February 7th International Business Management
Synopsis
Tom Chong is the country manager in Malaysia for Jextra Stores (Jextra), a multinational retailer with supermarkets throughout Asia. The company is based in Hong Kong. Jextra operates ten Neighborhood Market supermarkets in Malaysia. Chong has two issues he must resolve. One involves a recent conversation with the mayor of a town in which Jextra would like to build a new store. The mayor suggested the Jextra’s application for rezoning would be more likely to be approved if Jextra contributed to building a new primary school. The mayor also wants Jextra to help pay for a flyover at the road intersection for the proposed site. Chong’s other issue involves one of the category mangers. The manger may be accepting money and gifts from suppliers. Although Chong has no proof the manager is acting inappropriately, there are many rumors floating around Jextra’s office.
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Analysis
1. What cross cultural differences may be at play in this situation? 2. Does Chong understand exactly what the mayor has asked of him? Is he correct to
assume that this may be a request for a bribe? How should he proceed? 3. Regarding Chong’s category manager, what should he do? There is a strict no bribery
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policy at Jextra. Should he investigate in some way, if so how? Consider both acting and not taking action and make a case for each
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International Business Management Case 1 is due on February 7th.
Synopsis
Tom Chong is the Malaysian country manager for Jextra Stores (Jextra), a global retailer with supermarkets across Asia. The corporation is headquartered in Hong Kong. In Malaysia, Jextra operates eleven Neighborhood Market supermarkets. Chong must handle two concerns. One is a recent talk with the mayor of a town where Jextra wants to open a new store. The mayor proposed that Jextra’s rezoning proposal would be more likely to be approved if Jextra contributed to the construction of a new primary school. The mayor also wants Jextra to contribute to the cost of a flyover at the proposed site’s road intersection. Chong’s other issue involves one of the category mangers. The manger
