Premium Essay

Shui

In: Business and Management

Submitted By trixmanuel
Words 421
Pages 2
Ma. Patricia Grace Manuel
Priman

Shui Fabrics

How would you characterize the main economic, legal-political, and sociocultural differences influencing the relationship between the partners in Shui Fabrics? What GLOBE Project dimensions would help you understand the differences in Chinese and American perspectives illustrated in the case?

United States (Rocky River Industries) * Developed Country * More advance in technology * High labor cost * Availability of raw materials * Low Political risk

How would you define Shui’s core problem? Are sociocultural differences the main underlying cause of this problem? Why or why not? How would you handle the conflict with your boss back in the United States?

Shui’s core problem is that Rocky River’s president Paul Danvers is not satisfied with 5 percent as an ROI. He would like to stretch it to something like 20 percent. Sociocultural differences had a great influence with the problem Shui is facing. Americans tend to have a strong ethnocentric attitude where, like Paul, thinks their way would always be the best way in handling things even they are operating in a foreign country. He doesn’t seem to understand or mind the difference between their culture with the Chinese’s. Ray should remind Paul about the social and cultural difference of their partners. Like what other successful companies did, we can also improve our success by paying attention to the culture of our counter part. We should be flexible and meet at the middle.

If you were Ray Betzell, what other options to the 50-50 joint venture would you consider for manufacturing textiles in China? Make the argument that one of these options is more likely to meet Rocky River’s expectations than the partnership already in place.

Company should outsourced to obtain the cheapest labor. Also, to look for other suppliers with...

Similar Documents

Free Essay

Report on Benefits of Feng Shui

...92263 © 2002 Eloise Helm All rights reserved. No part of this book may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from the publisher. First Edition Illustrations by C.J. Correnti / C2 Media Group, Inc. © 2002 C2 Media Group, Inc. Library of Congress Cataloging-in-Publication Data ISBN 0-9639204-7-2 Introduction lthough Feng has been practiced in the Eastern hemisphere for thousands of years, it is relatively new to western civilization. Feng Shui may seem mysterious and foreign to our western culture, but it is actually a very sensible collection of ideas and actions. Once you understand its principles, you will be able to produce harmony, comfort and balance in almost any situation or environment. 26 Secrets has been put together to simplify Feng Shui so that everyone can understand and work with its principles to balance their lives and make way for more money, love, health and happiness. Some of these tips will help bring these things to you, while others will make it easier to hold on to money, romance and health once they’re in your hands. When you energize the various parts of your home, your life will improve and you will start to attract more abundance and happiness. Begin to think of balance in all things. For example, you must activate your career and benefactor sections so that you can be a magnet for exposure to......

Words: 14656 - Pages: 59

Premium Essay

Shui Fabrics

...Shui Fabrics Introduction Over the past five years, Ray Betzell has been the general manager of a joint venture between Ohio-based Rocky River Industries and Shanghai Fabric, LTD. Ten years ago, Rocky River launched Shui Fabrics as a 50-50 joint venture between a U.S. Textile manufacturer and a Chinese company to produce and dye coat fabric that would be sold to both Chinese and international sportswear manufacturers. Even though Betzell was beginning to feel like he was caught in the middle because his boss Paul Danvers, the president of Rocky River, was starting to grow frustrated with the 5% ROI Shui Fabrics was receiving and felt that they should be receiving at least a 20% ROI, Chiu Wai, Betzell’s Deputy General Manager, was pleased with the way things were going and felt that the joint venture was fulfilling his expectations, those of the local government, and party officials who were keeping careful tabs on the enterprise. Describe the differences between Ray Betzell's and Chiu Wai's perspectives on Shui Fabrics' Return on Interest (ROI) in terms of the GLOBE Project value dimensions. The differences between Ray Betzell's and Chiu Wai's perspectives on Shui Fabrics' ROI in terms of the GLOBE Project value dimensions are economic, legal-political, and sociocultural influences. Economic factors include economic growth, interest rates, exchange...

Words: 1420 - Pages: 6

Premium Essay

Shui Fabric

...country for foreign businesses to invest in. Manufactures in China are growing fast in industrial and consumer product sold in the United States. Although the market is growing in China laws and regulations are becoming even stricter. Doing business in another country takes time and research. To often management fails to understand that business values and behaviors done in the United States do not translate to the rest of the world (Daft & Marcic, 2011, p. 105). This could be an area that the president of Rocky River failed to research, and understand what business values his joint venture company Shui Fabrics believes in. CULTURAL CHARACTERISTICS There are cultural characteristics that influence organizations, those characteristic include language, religion, social organization, education and attitudes. Attitude is a big factor in the Rocky River and Shui Fabric joint venture, mainly understanding each other’s value. As noted in the textbook Understanding Management “Attitude toward achievement, work, and people can all affect organizational productivity” (Daft & Marcic, 2011, p. 111). Just as Paul Danvers doesn’t understand that his counter part Chui Wai is very pleased with the five percent return on investment, referring to attitude of the Chinese culture. Understanding each cultures cultural characteristic is key in a successful joint venture and business or partnership. SOCIAL VALUE Managers need to understand the local culture and one way......

Words: 1353 - Pages: 6

Premium Essay

Shui Fabrics

...SHUI FABRICS Introduction Shui Fabrics is a fabric company based in China. The company is a 50%-50% joint venture between Shanghai Fabric Ltd., Chinese company and Rocky River Industries, U.S. Textile manufacturer. The company produces dye and coat fabric for domestic and international sportswear markets. There are several differences between the American and Chinese views of the company. Let’s discuss some of the ways the two countries differ in regards to the GLOBE project value dimensions. Differences between American and Chinese perspectives The first difference deals with the humane orientation dimension. The Chinese are concerned with job creation, because their unemployment hovers around 20 percent. With this joint venture they would be able to employ around 3,000 people, which is a real contribution to the local economy. The Americans think we should cut workers in order to make a higher profit. The Americans are more concerned with bottom dollar and not the people. The second difference deals with the performance orientation dimension. Chiu Wai, Chinese deputy general manager’s, point of view on the return on investment (ROI) is that they generate an appropriate level of profits “not too little and not too much”, he is satisfied with the 5 percent ROI. Ray Betzell is the American general manager, and his boss and President of Rocky River Industries, is Paul Danvers. Danvers thinks the 5 percent ROI is pathetic and that he expected around 20 percent......

Words: 992 - Pages: 4

Free Essay

Shui Factory

...Shui fabrics Describe the differences between Ray Btzell's and Chiu Wai's perspectives on Shui Fabrics' ROI in terms of the GLOBE Project value dimensions: Both Ray Btzell and Chiu Wai have excellent intentions with regard to Shui Fabric but have a wide cultural difference from a business perspective. Ray is caught in the middle of American profitability on foreign soil and growth, opportunity and economic stimulation in the local community. With a 20 percent unemployment rate for the country, Shui Fabrics has created over 3000 jobs. Along with being a profitable company, it has a positive impact in the community. Ray’s American leadership has undermined the value of job creation in the community with the slow ROI of the market. They are basing the profitability of this foreign company on American standards. Chiu’s perspective is that of greed and exploitation and balance and fair business. His leadership is concerned that western countries are trying to take over business in their home land. “Foreign companies doing business in China are generally required to form joint ventures with Chinese companies instead of forming wholly owned subsidiaries. Entrance by foreign companies to the Chinese market is often determined by how much technology and know-how the Chinese can get from the foreign company. Many Chinese worry that foreign companies are poised to take over entire sector of the economy” (Hays,2008). In terms of the GLOBE dimensions they have power difference......

Words: 760 - Pages: 4

Free Essay

Shui Fabrics

...value dimensions. It will explain which of the differences is most central to the issue at hand and why and develops a strategy for addressing the situation. It will also explain how the strategy will appease Ray’s boss back in the U.S. Lastly the specific benefits to the strategy will be laid out. Shui Fabris Perspectives on Shui Fabrics ROI of the Globe Ray Betzell who is the general manager of an overseas venture with Shanghai Fabrics Industry and Rocky River Industries appears to be torn between the two companies.   Though he spent many years of producing; Rocky River’s President Paul Danvers was not pleased with the company’s annual returns on investment (ROI) of 5%.   Chui Wai who is a deputy general manager, believed that Shui Fabrics had a good balance for the ROI and that there was the right level of profit, “not too much and not too little.”   Paul Danvers felt that the annual return should be somewhere around 20% because of the amount of years that they were in partnership.   Ray Betzell and Paul Danvers discussed the production of the company and the output of that alternative methods, he also gave the option of terminating his contract with Shui or everyone coming to an agreement on how to generate better ROI.     There are differences between Ray and Chiu’s...

Words: 1149 - Pages: 5

Premium Essay

Shui Fabric

...Rana, Erec C. Management Dynamics SHUI FABRICS: A CASE STUDY I. PROBLEM Low return on investment is the main problem of Shui Fabrics as to US standards. It has stuck to 5% for three years and the Rocky River President expects 20%. II. OBJECTIVE To increase the return of investment of Shui Fabrics to 20% or better. III. ANALYSIS OF RELEVANT FACTS 1. Shui Fabrics is a 50-50 joint venture between the US textile manufacturer and the Chinese company. Engaging in strategic alliances and partnerships is currently the most popular type of direct investment like a joint venture. The venture is to produce, dye and coat fabric for sale to both Chinese and international sportswear manufacturer. 2. Using the Global Leadership and Organizational Behavioural Effectiveness (GLOBE) Project Value Dimensions, the case presents the difference in perspective between the American and Chinese: The American displays performance orientation whereby it places high emphasis on performance and rewards people for performance improvements and excellence. The American wants to see a better economic performance and expects higher profits, more than 20% ROI and not contented with 5% ROI. Tasked Oriented. One option taken was thinking of pulling the plug on Shui Fabrics if no improvement in the performance. On the other hand, the Chinese exhibits humane orientation. The concern......

Words: 268 - Pages: 2

Free Essay

Shui Fabrics

...now. At *ris poin! I'd expected to be looking at something more on the order of 20 percenl" He pointed out that greater efficiency plus inco{poratiag more sophisticated technology would allow Shui to reduce its workforce substantially and put it on the road to a more acceptable ROI. "I'm well awalre of the fact that the Chinese work for a fractian of what we'd have to payAmerican worker€, and I do appreciate the pressure ttrc govemment is putting on you guys. But sfill, it doesn't make any sense for us to hire more workers than we would in a comparable U.S. plant"" After an uncomfortable silenc€, during which Ray tried and tailed to picture brmdring the subiect of possible layoft tohis Chinese counterparts, he heard Paul ask the question he'd been &eading: "I'mbegirming to think it's time to prll the plug onShui.Is there any way youciln se totum thisaroun4 Ray, or shouldwe start thinking about other options? Staying inChina is a giverr, but ther:e has to be a better way to do it." Questions 1- FIow would you characterize the main economic, legal-political, and sociocultural differences influencing the relationship betrseen the parhrers in Shui Fabrics? What GLOBE Project dimensions would help you understand the diffierences in Chineseand American perspectives illustrated in the case? Shui Fabrics Ray Betzell, general marulger for the past five years of a joint venhrrchtween Ohio-based Rocky River Industries and Shanghai Fabric Ltd., was feeling caught in the middle these......

Words: 796 - Pages: 4

Free Essay

Shui Fabrics

...Shui Fabrics Strayer University October 28, 2012 Ray Betzell and Chiu Wai’s perspective on Shui Fabrics Economy Ray general manager of the American company feels the disappointment of the low Return of Interest (ROI). In launching this business on Chinese soil there were many barriers from Chinese government. Economically the business venture is more advantageous to the Chinese government rather than the American business because of the high tariffs placed upon American companies. Chinese’ textile trade market allows no negotiations on exports. Per capita, Chinese employees have the lowest wage (below world average). Chinese work for lower wages than Americans but American’s technology advances allow American workers to be more efficient and require fewer employees than their counterpart. Americans are struggling in their own country with high unemployment rates and rising poverty due to the economic downturn. The overall disappointment is that there is no flexibility in expanding in the American capital plan in the scheme of the Globe project. Chiu is pleased because the business is economically beneficial to the Chinese government and the local area. The business is providing jobs for the Chinese people and stimulating economic growth for the Chinese government. China is the largest exporter in the world. Chiu feels that Americans should be satisfied with the ROI. Americans seem to be thought as greedy; Chiu along with local authorities......

Words: 1390 - Pages: 6

Premium Essay

Shui Fabrics

...Shui Fabrics Ray Betzell, the general manager of a joint venture between Ohio-based Rocky River Industries and Shanghai fabrics Ind. After many years of production, Rocky River’s President Paul Danvers wasn’t satisfied with the annual return of 5%; he desired an annual return of around 20%. But from the view of Chui Wai, deputy general manager, believed that Shui was generating just the right level of profit-not too much and not too little. When operating on an international basis, it is important for managers to give considerable thought to economic, legal-political, and sociocultural factories. Those two companies are from different countries, one is from China and another one is from the United States. China is attractive for low-cost manufacturing of goods, on this way, China has larger market and sales more products but with lower price, which means lower profit. The united states running on opposite way have high income per hour worked, less products but with high quality and high price. That’s why President Paul Danvers wasn’t satisfied with the annual return of 5%. The different perspectives between those two companies go to different side. On one side, the president of was unhappy with the 5% return of investment. On the other side, the Chinese deputy general manager was actually very happy with the venture because it was having a positive impact on the local economy by providing jobs, and producing the right amount of profit allowed by the government. In this......

Words: 400 - Pages: 2

Free Essay

Exmples of Outlines

...Topic: Feng Shui | Specific Purpose: To inform my audience about the benefit of Feng Shui. Central idea: It is all because of Feng Shui.IntroductionI- It’s move-in day.II- While most everyone is rushing about carrying boxes, computers, TVs, and stereos to make their dorm rooms feel a little more like home, my mom is carrying, wind chimes.III- Don’t wind chimes belong outside? In a garden? On a patio? IV- Anywhere but a dorm room? My mom had strategically placed them so that each time I opened the door, it would swing into them. IV- It was all because of Feng Shui. V- According to Simon Brown, author of the book Practical Feng Shui, feng shui, which literally means wind and water, “is the art of designing your home to promote success in life, health, wealth and happiness.” VII- Feng Shui originated in China over 4,000 years ago and is still practiced throughout the world today. VIII- While it may seem like only ancient Chinese philosophers can master this art, even college students like us can learn simple techniques for improving the flow of energy in our dorm rooms, homes, or apartments. I- With my mom’s enthusiasm behind me, I decided to research this topic some more on my own. IX- First I’ll explain a bit more about what Feng Shui is and then give you some tips on putting this ancient art into practice. Body I. must understand what Feng Shui is.A. Feng Shui is a method of maximizing energy flow by manipulating your environmentB. Feng Shui has many benefits ...

Words: 478 - Pages: 2

Free Essay

Management

...Living Room Feng Shui Ideas Feng Shui is known as a method of placement to improve your life in every way. It is all about incorporating into the environment as it allows us to achieve harmony by the placement & arrangement of space. Living Feng Shui life can provide you peace and tranquillity of life. With the Feng Shui items, you get restricted to some of the interior furniture arrangements. Weather, astronomy, geomagnetism are central components of Feng Shui. Using Feng Shui products one can have a great positive impact on one's health, increase one's fortune and have better personal relationships. The main room in our home is the Living room where all the family members or guests get together and share their ideas. Various Feng Shui living room tips can be shared as under:- • Place the sofa in the corner which is farthest from the door and windows and make sure the sofa is clearly visible and provides a clear view of the door. • Do not allow space in between the wall and sofa. Wall is essential for providing security & protection to the members in the Feng Shui house. Don't place the sofa in front of a window or directly opposite the door. Since energy flows between the door & window, it would restrict the path of your guests. • Make sure you do not have lights or beams directly above the sofa as this would release the flow of negative energy. • Use of screens & partitions to influence the energy flow is highly recommended. This way the flow of energy can be......

Words: 515 - Pages: 3

Free Essay

Shui Fabric

...Shu Fabrics Case Study Cecily Rodgers Modern Management Charles Milazzo Oct. 28 , 2012 I. Ray Btzell vs. Chiu Wai Shui Fabrics was a joint venture between America-based Rocky River Industries and Shanghai Fabrics. After loss of investments and obstacles were overcome, Shui fabrics began profiting after several years passed. In response to the profits, Ray Btzell and his bosses were more concerned with the performance orientation. Btzell and the American investors were concerned with gaining more than a 5% return on investment and somewhat closer to 20%. The performance orientation places high emphasis on performance and rewards people for improvements and excellence (Daft, 2010). In the perspective of GLOBE value dimensions, China and United have different views when it comes to businesses and way of life. In the United States, Americans view performance as being indicative of success. If a company is performing well, then the business will continue to gain profits. In contrast to China’s way of thinking, the American investors were more concerned of gaining a higher return on investment because the company was more successful. China were satisfied with the 5% ROI because unemployment rate was over 20% and having a low ROI would allow more jobs to be created. Chui Wai was promoting sustainability in the company by preserving the profits they were making at that time to be set-aside for the future since there were some joint ventures still operating in the...

Words: 812 - Pages: 4

Premium Essay

Shui Fabrics

...Shui Fabrics: A Case Study Critical Analysis Executive Summary Managers of multinational organizations and joint ventures have to negotiate, operate, and develop strategic plans that adapt to the cultural differences in each environment. Cultural differences among the United States and China often shape the design and implementation of a strategic plan. To increase the probability of success for joint ventures, an understanding of each country’s sociocultural, economic, and legal-political differences is not only important but necessary. Introduction Shui Fabrics is a joint venture between Rocky River Industries based in Ohio and Shanghai Fabrics in China. Ray Betzell has been the General Manager of the China location for the past five years. The central issue in this case is that the president of Rocky River, Paul Danvers, is not satisfied with the profit that is being generated from Shui Fabrics. He would like to see an increase the company’s annual return of investment form 5 percent to 20 percent. Danvers’ suggestion is to reduce labor costs by laying off Chinese workers; however, he charges Betzell with coming up with options to increase efficiency. Identification of Stakeholder’s Problems, Goals, and Concerns Paul Danvers is the President of Rocky River Industries based in the United States. With respect to the GLOBE Project value dimensions, Danvers’ management style places a high value on assertiveness which directly affects how he communicates. ......

Words: 1210 - Pages: 5

Free Essay

Eng160 Mod 3

...include: notes pads, personal accessories, food, pens, pencils and much more. Another crucial aspect of a well-organized office is to have uncluttered walls. I know it is tempting to hang cat photos, and inspirational pictures, but they serve no purpose in productivity. Items such as white boards, contact lists, charts, and graphs are much more suited for an efficient office. The final piece of a well-organized office is the floor. The floor should be clean and free of unnecessary objects. A person should be able to walk around without fear of falling due to trip hazards. It should also have room for filing cabinets, or other storage containers. These objects should be able to be placed in a manner that is conducive to a proper Feng shui. Feng shui is a Chinese...

Words: 723 - Pages: 3