Shui Fabrics: A Critical Analysis of a Global Problem
In this paper we will discuss the Shui Fabrics Case Study and its implications on managing in a global environment. The research of case studies gives us the opportunity to understand and apply the lessons we have learned in the course. The case explains that for 10 years, Shanghai Fabric Ltd., a Chinese fabrics company, and Rocky River Industries, a United States textile manufacturer, have been part of a 50-50 joint venture to produce dye and fabric. This venture, called Shui Fabrics, produced dye and coat fabric for domestic and international sportswear markets. Ray Betzell, general manager for five of the 10 years, found himself in the middle of a tough situation (Daft, 2012, p. 119). The objective of this case study is to identify the main problem, analyze its implications, and integrate the management skills we have learned in the course. I will discuss the differences between the American and Chinese views of the company in regards to the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project value dimensions [ (Daft, 2012, pp. 106-107) ]. We will also learn the importance of researching the socio-cultural values of the country we want to do business with. Problem
Ray Betzell has a dilemma. On one side, the Rocky River president and Ray’s boss, Paul Danvers, was unhappy with the 5% return of investment (ROI) the company was producing and wants Ray to find solutions or they would pull out of the joint venture, while considering staying in China. 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. The problem is that Ray Betzell needs to find a way to convince his boss that Shui Fabrics has actually been very...