| GENTRAN MACHINERY | | | | |

INDEX 1. Executive summary 1 2. SITUATIONAL ANALYSIS 1 2.1 rEASONS BEHIND JV 1
3. PROBLEMS IDENTIFIED 2 3.1 STARTEGY ISSUES 2 3.2 STRUCTURAL 2 3.3 SYSTEMIC & HR 2 3.4 CULTURAL 2
4. CRITICAL SUCCESS FACTORS 3
5. DECISION CRITERIA 3
6. RECOMMENDATIONS 3
7. EVALUATION OF RECOMMENDATIONS 4
8. ACTION PLAN 5 8.1 SHORT TERM 5 8.2 LONG TERM 5
9. CONTINGENCY PLAN 5

1. EXECUTIVE SUMMARY
The case study analysis explains at length about the challenges faced by Gentran Machinery’s JV in Hangzhou, China. Mr. James Thompson, President of GM Pacific wanted a review of the problems and recommendations from an on-site visit and had allocated the responsibility to Bill Stevenson.
Mr Stevenson’s report has identified cultural barriers and associated issues as the major hindrance to the performance of the JV. There’s apparent lack of cooperation between two sets of managers and it is compounded because of mutual distrust. He also identified the legacy of Hangzhou Construction Factory, autocratic style of management & the traditional Chinese system of always going to the superior for decisions.
We have developed strategy map and underlying issues were identified on the basis of reasonable inferences drawn from the interviews’ findings. Finally, recommendations have been evaluated and long-term and short-terms solutions to above issues have been listed.
2. SITUATIONAL ANALYSIS
Gentran machinery is a global heavy machinery manufacturer for manufacturing, mining and construction operations. The company works in an increasingly competitive environment with competitors coming in mainly from Japan and South Korea.
Despite this, Gentran has managed to perform well, clocking in an average annual growth of ~12% and