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Shui Fabrics Question - Ans

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Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions.. There are economic differences that influence the relationship between the partners at Shui Fabrics. Chiu Wai operated Shanghai Fabrics LTC located in China, before it became a joint venture with Rocky River Industries in the United States. When the companies became a venture, Chiu Wai became the Deputy General Manager for Shui Fabrics in China and venturing company Rocky River Industries located in US. Ray Betzell who is the General Manager for Shui Fabrics came to China from Rocky River Industries. Many companies who do business in others countries and cultures fail miserably. Managers must do their homework and learn the business ethic and culture lifestyles before even considering venturing into markets in different counties. To me it seems like neither of the managers did their homework and are having problems maintaining the economic factors that influence their company
Political officials are going to be a big part of the team because they have strong influence on economic life in China. Ray must reach out to them and understand their goals. Success will depend on the personal involvement of top executives. The partners differ dramatically in terms of what constitutes an acceptable financial return. Chiu Wai is happy with achieving a 5% to 6% profit and believes he is viewed as a local hero. Upon achieving his goal he feels that he has done a good job for his country morally and for their side of enterprise by creating jobs for close to 3,000 people. He wants to grow the scope of Shui Fabrics and establish a national brand. Ray Betzell wants a 20% ROI and will only consider growth if it improves profitability, has no interest in creating employment unless it improves the

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