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 Mondavis 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 against 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.
- BUSINESS SYSTEMS
- ECONOMIC CULTURE
- MARKET ENTRY