...Jextra Neighborhood Stores Case Analysis This report analyzes the ethical dilemma faced by Jextra’s country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges...
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...Harvard Business School: Jextra Neighborhood Stores in Malaysia Introduction Tom Chong has several issues he needs to deal with in couple of weeks; however, some issues are more critical than others so he has to handle them accordingly. Chong has two major issues that must be resolved: one of the issues is a recent conversation between him and the mayor of Klang, a town in which Jextra would like to build a new store. The mayor informed Chong that Jextra's application approval process for rezoning would speed up if Jextra will support a new primary school building in Klang. The mayor also wants Jextra to help pay for a flyover at the road intersection near the proposed store site. Should Chong invest Jextra’s money in those projects? Chong's other issue involves the job performance of one of his category managers, Arif Alam. He is one of the top performing managers at Jextra. Chong could not stop wondering if Alam is accepting money and gifts from Jextra’s suppliers. Although Chong has no proof that the manager is acting inappropriately, there are many rumors floating around Jextra's office. Should Chong investigate Alam? By the way, who is Tom Chong? Tom Chong is the country manager in Malaysia for Jextra Stores (Jextra), a large Asian supermarket retailer based in Hong Kong and owned by Sim Lim Holdings – a large publicly traded industrial group. The company Jextra, operates ten Neighborhood supermarkets in Malaysia. This paper is to analyze how Chong will eradicate...
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...Jextra Neighborhood Stores Case Analysis This report analyzes the ethical dilemma faced by Jextra’s country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges...
Words: 2942 - Pages: 12
...JEXTRA NEIGHBOURHOOD STORES IN MALAYSIA NURULSAKILA BINTI JAFRI MBS141092 BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY MRAA 1533 LECTURER: DR JIHAD MOHAMMAD 4TH APRIL 2015 ------------------------------------------------- Question 1: How should Tom Chong resolve the request from Mayor of Klang? Tom Chong is in dilemma. He is very ambitious in penetrating the market and expanding Jextra in Malaysia. He believed Malaysia has plenty of growth opportunities for supermarkets investment despite various challenges that need to face. In order to accomplish his goals, he prepared an aggressive five-year investment strategy and identified Klang as the potential site for new Neighborhood Market. It was however, Mayor of Klang suggested that the application for zoning Jextra would be more likely to be approved if Jextra supporting new primary school and financing flyover. Bribery can be defined as the offering, giving, receiving, or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties (Bribery, 2008). The truth is Chong knew supporting new primary school and flyover is a bribe to obtain the permit and is illegal either in Malaysia or Hong Kong. Nevertheless his desire to develop the business within short time wavered his decision making. As a Country Manager, Chong should have very clear about Jextra’s Business Conduct Code in which no bribery is allow to obtain or retain the business...
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