Shui Fabrics: Critical Analysis of a Global Problem
GM500 Management Theories and Practice I
December 30, 2013
The objective of this paper is to analyze the Shui Fabrics Case Study to show how to manage effectively globally. The case is about an American company Rocky River Industries, a textile manufacturer, and a Chinese company Shanghai Fabric, a fabric company, forming a 50-50 joint venture that would produce, dye, and coat fabric for sale to both Chinese and international sportswear manufacturers. With this case I will show the differences in cultural views between the Chinese and Americans by using the Global Leadership and Organizational Behavior ...view middle of the document...
Danvers felt differently he felt that the 5 percent profit was pathetic and should have been at more than 20 percent. These problems were viewed differently between the Chinese and Americans due to the differences in corporate culture, economic, and political conditions (Daft, 2012).
The GLOBE Project uses data collected from multiple managers in different countries that explain cultural differences (Daft, 2012). The GLOBE Project identifies the following characteristics: assertiveness, future orientation, performance orientation, and humane orientation (Daft, 2012). Based upon the case study I will focus upon these characteristics and show the differences that were between these two countries. The first characteristic is assertiveness it has two values a high and low with a high value this is where society encourages toughness, assertiveness, and competiveness and when it is low people value tenderness and concern for others over being competitive. With this case the U.S. shows high value in that they are more concerned with making a higher profit and China exhibits low value in that they are satisfied with the profit that is being made and more concerned with keeping the local authorities happy. Future orientation this is the extent that a society encourages and rewards planning for the future over short term results and quick gratification (Daft, 2012). With the Americans they did not look at the obstacles that were faced when they first entered China with the local government and party officials to finally be making a profit. They were only looking at the labor cost being lower they should have seen quick gratification and higher profits instead of the long term results of this venture giving them access to the huge Chinese market. With performance orientation it has two values a high and low when it is high society places more emphasis on performance and rewarding people for improvements and excellence. When it low society does not pay as much attention to performance and focus more on loyalty, belonging, and background (Daft, 2012). The Americans and Chinese differ with this in that Wai feels that the 5 percent ROI was appropriates, because it kept the local authorities from thinking that the American were trying to exploit them. The Americans felt that the 5 percent ROI was unacceptable and should have been more around 20 percent. Lastly, humane orientation is the degree to which society encourages and rewards people in regard to being fair, generous, and caring (Daft, 2012). The Chinese is high in this dimension in that Wai felt the venture was successful to the economy by providing close to 3,000 jobs to people which is a huge accomplishment where unemployment rate was around 20 percent. The Americans felt differently they felt they could incorporate more sophisticated technology and reduce the workforce to create a greater ROI. With Ray Betzell being the general manager and the go between person between Wai and Danvers he...