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Case
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Reference no. 304-565-1
Published by: INSEAD
Originally published in: 2004
Version: 03.2004
Length: 10 pages
Data source: Field research

Abstract

This is the second of a two-case series (304-564-1 and 304-565-1). In the late 1990s Robert Mondavi Corporation, a major US wine company based in California, was seeking to expand its international presence by setting up an operation to produce wine in southern France. After failing to find a suitable partner it adopted a green field strategy, targeting an area of undeveloped land in the Languedoc village of Aniane for purchase. The case details how Mondavi''s plans provoked a public outcry that entangled the company in a political and cultural minefield. The ensuing debate, that pitched traditional French wine making methods versus US industrial scale production, also touched on issues of globalisation and the behaviour of multinational companies. The case illustrates aspects of institutional theory, including regulative processes, enforced obligations and expectations and cultural values. It is a lesson in how these issues shape business systems and business behaviours, and how misunderstandings can occur when agents of different business systems interact.
Location:
Industry:
Other setting(s):
1999-2001

About

Abstract

This is the second of a two-case series (304-564-1 and 304-565-1). In the late 1990s Robert Mondavi Corporation, a major US wine company based in California, was seeking to expand its international presence by setting up an operation to produce wine in southern France. After failing to find a suitable partner it adopted a green field strategy, targeting an area of undeveloped land in the Languedoc village of Aniane for purchase. The case details how Mondavi''s plans provoked a public outcry that entangled the company in a political and cultural minefield. The ensuing debate, that pitched traditional French wine making methods versus US industrial scale production, also touched on issues of globalisation and the behaviour of multinational companies. The case illustrates aspects of institutional theory, including regulative processes, enforced obligations and expectations and cultural values. It is a lesson in how these issues shape business systems and business behaviours, and how misunderstandings can occur when agents of different business systems interact.

Settings

Location:
Industry:
Other setting(s):
1999-2001

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