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 red. Also, Chui Wai valued the relationships they had developed through the joint ventures, but Paul Danvers was more concerned with pulling the plug on Shui Fabrics. It shows that the social-cultural difference or influences has played a major role to develop different views of Ray Betzell and Chiu Wai, as well as, created conflict with boss
II. The Most Central Difference
The difference most central to the issue at hand is the economic and performance orientation. The Americans see money as being a more important factor compared to how it would affect the overall way of life. All organizations have their own...
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