Marlboro Safety Group (MSG) Inc. goes to France

Abstract

My thesis, Marlboro Safety Group (MSG) Inc. Goes to France, is a theoretical international expansion of my formerly owned company into France. This research explored internationalization strategy, accounting principles and a comparison of cultural dimensions between the United States and France. The purpose of this expansion would be to utilize our experience within the world of OSHA, specifically the procurement of OSHA 30 and 10 hour cards within the construction sector and focus on the greater New York City area, and donate our administrative services to the filing of the Carte BTP, the OSHA card equivalent, in France. Findings suggested that the creation of a subsidiary would be the most beneficial for the undertaking of this expansion with emphasis placed on finding a contact person who can both speak French and has experience with French policy and government. Once established as a subsidiary, accounting principles call for the subsidiary to be deemed an LLC and in France it is a SARL de famille due to the fact that there is more than one owner and MSG is a family-owned business. When taxed as an SARL de famille, income is subject to personal income tax and when filing income taxes at home, a tax credit is given in the amount of tax withholdings paid to the French government so that income made abroad is not taxed twice. Finally, cultural differences are imperative to acknowledge when creating a work environment that is both appropriate and comfortable for those working under our guidance in France. For this evaluation, research of Hofstede’s Cultural Dimensions evaluated topics such as acceptance of the business hierarchy, individualism, factors for motivation, uncertainty avoidance, adaptation to or acceptance of change and indulgence. In addition to Hofstede’s dimensions, general culture norms were explored in order to give a baseline of accepted behaviors when doing business in France.