Jextra Neighborhood Stores Case Analysis

Register to read the introduction… Chong also faces challenges with regard to the differences of culture between Malaysia and his home country, China. Research shows that individuals from different cultures may face challenges in understanding the behavior and values of others in the host country. Thus, this can cause a cultural clash (Tahir & Ismael, 2010). However, China and Malaysia are culturally close, so it can be expected that Mr. Chong adjust more easily than if he were to do business in countries with more cultural distance, such as France, U.S. or Germany (Daniels, Radebaugh, & Sullivan, 2010). Both, Malaysia and China present many similarities regarding its culture. Based on Hofstede’s cultural dimensions theory, both countries have a high degree of power distance (PDI), collectivism, masculinity (MAS), and high uncertainty avoidance (UAI). (Daniels, Radebaugh, & Sullivan, 2010). Additionally, Mr. Chong may have a different level of ethical sensitivity than its counterparts in Malaysia (Chan & Cheung, 2012). People from different cultures have different ethics, which are influenced by their beliefs and cultural values (Chan & Cheung, 2012). Other challenges that may rise are problems regarding communications. As noted by Daniels, Radebaugh, and Sullivan (2010), “cross-border communications do not always translate as intended” (p. 67) and can lead to misunderstandings. For instance, Mr Chong is not sure about what the Mayor meant when he asked to pay for the primary school; whether he …show more content…
Chong to just pay the bribe to the Mayor of Klang and “fall back on the standard of cultural relativism” (Daniels, Radebaugh, and Sullivan, 2010, p.195). As a manager, Mr. Chong should act responsibly and ethically, and in compliance with local law, corporate culture and International law. The best approach for Mr. Chong would be to report to the Regional Operating Officer responsible for Malaysia, Singapore and Thailand and to the CEO, and CFO of the Supermarket and Hypermarket Divisions of the company in Hong Kong (Inkpen, 2010). Definitely, Mr. Chong should consult this issue with top management. Jextra and Mr. Chong should also receive legal advice from a reputable law firm in Malaysia regarding the legality of the Mayor’s offer, and if accepting the offer would constitute an offense under the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act. If it does constitute bribery, then the best option for Mr. Chong would be to reject the mayor’s offer and proceed through formal channels to get the zoning approval (Inkpen,