International Management Case Study

International Management
Case study

Running head: Shonteur Case Study 1
Contents
Problem............................................................................................................................................2
Reasons for the occurrence of the problem.....................................................................................2
Similar problems faced by other companies....................................................................................4
Factor...............................................................................................................................................5
Lessons learnt..................................................................................................................................6
Suggestions for the problem............................................................................................................7
References........................................................................................................................................8

Running head: Shonteur Case Study 2
Problem
John Thompson is an executive for Shonteur Inc. It is a successful wine wholesaler business
based in Massachusetts, USA. In order to increase the profits, the company has established its
subsidiary in France. For the effective working of this subsidiary, John Thomson was appointed
because of his successful experience in Shonteur Inc., subsidiary based in Napa Valley,
California, USA. The problem arises is that despite John Thompson possible efforts in increasing
the Shonteur France Inc. employee productivity, he had failed in his goal for achieving
organization success in France as he had gain in Napa valley, California, USA.
Reasons for the occurrence of the problem
Power Distance is the unequal distribution of power in a society. In United States, this dimension
is marked low whereas in France, it attains a higher position in work environment. John
Thompson has applied ‘Delegation of Authority’ in Shonteur Inc. in United States and has
attained good results from its employees. He had applied the same strategy in Shonteur France
Inc.as well but it did not offer him good results from the employees. This is because in France,
employees and high authority holders share wide difference in their power thus employees are
not given the opportunity in sharing of power. Hence, it results in underdeveloped relation
between the head and the subordinate. Similar case happened in Shonteur France Inc. John
Thompson had given opportunity to its employees in decision-making process. However, they
failed to express their ideas and views in the process because of poor communication relation
with the superior, John Thompson (Cohn & Russell, 2015).
Individualism is marked high in France as compared to United States. It means that Americans
focused just on themselves whereas French considered themselves as a part of group also. In
France subsidiary, employees have formed groups and thus they are interdependent on each other
for their work. It resulted in French employee’s slow performance with low individual work in
Shonteur Inc. France. Overall delay in employee’s performance has resulted in poor company
results (Meer, 2011).
Masculinity culture followed more in United States as compared to France. Values such as
money, success are the part of this culture. It means American give more importance to money as