Shui Fabrics

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Describe the differences between Ray Betzell’s and Chiu Wai’s perspectives on Shui Fabrics’ ROI in terms of the GLOBE Project value dimensions.
Shui Fabrics is a joint venture between Rocky River Industries, an Ohio based company and Shanghai Fabric Ltd., of China. Ray Betzell, the general manager of Shui Fabrics along with deputy manager, Chui Wai, both share difference of opinions pertaining to the direction of the company. According to the case, Wai appeared very pleased with the overall direction that the company is headed in. Wai feels that the company has had a positive impact on the local government and it has also created jobs for a number of people in addition to boosting the economy (Daft, 2010).

Although Ray Betzell enjoyed his time in China, the case states that he was aware of the frustrations of Paul Danvers, the President of Rocky River Industries. Danvers was ecstatic that Shui Fabrics had cut Rocky River’s labor cost and it provided the company an opportunity to engage in the Chinese market. However, Danvers felt that since the merger was in existence for 3 years, a 5 percent ROI wasn’t acceptable. He felt that the numbers should have been in the 20 percent range at that particular time. He even went a step further in his displeasure by conferring to Betzell that he felt that it possibly time to sever ties with Shui (Daft, 2010).

The GLOBE (Global Leadership and Organizational Behavior Effectiveness) Study is basically an analysis of the cultural, societal, organizational, and leadership differences between 62 different societies around the world (“The globe study,” 2007). It breaks down the 62 societies into 9 Cultural Dimensions: performance orientation, uncertainty avoidance, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, and power distance; 6 Culturally-endorsed Leadership Theory Dimensions: charismatic/value based, team oriented, self-protective,...
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