International Business Management

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.

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

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.