Shui Fabrics: A Case Analysis of a Global Problem
INTRODUCTION
Shui Fabrics is a joint venture business between an American Company, Rocky River Industries and Shanghai Fabric Ltd. from China. The partnership began 10 years ago with the goal of producing dye and coat fabric to sell to china and international sportswear manufactures (Daft, 2012.) The general manager in China was very pleased with the company’s progress in terms of production, affecting the local economy and the right amount of profit (Daft, 2012.) On the other hand, the American side of the partnership wasn’t as pleased recognizing a 5 percent annual return on investment (ROI) (Daft, 2012.) The American leadership believed that a higher ROI should be realized after acknowledging some of the challenges that are involved operating in China (Daft, 2012.) This paper will explore the Shui Fabrics Case Study and its implications on managing in a global environment.
PROBLEM
Ray Betzell, the general manager of a joint venture between Rocky River Industries and Shanghai Fabrics Ltd., was being torn between the two companies. After many years of production Rocky River’s President Paul Danvers wasn’t satisfied with the annual return of 5% (Daft, 2012.) Chui Wai, deputy general manager, believed that Shui was generating just the right level of profit not too much and not too little (Daft, 2012.) Although Chui Wai believed production and profits were well, his partner didn’t agree. Paul Danvers desired an annual return of around 20% based on the amount of years in service (Daft, 2012.) Based on their differing perceptions on how well the company was performing, made the American group think about other possible options. The differing ways that they looked at the problems are Individualism and Collectivism. Individualism reflects a value for a loosely knit social framework in which individuals are expected to take care of themselves (Daft, 2012, p107.) Collectivism means a preference for a tightly knit social framework in which individuals look
Shui Fabrics is a joint venture business between an American Company, Rocky River Industries and Shanghai Fabric Ltd. from China. The partnership began 10 years ago with the goal of producing dye and coat fabric to sell to china and international sportswear manufactures (Daft, 2012.) The general manager in China was very pleased with the company’s progress in terms of production, affecting the local economy and the right amount of profit (Daft, 2012.) On the other hand, the American side of the partnership wasn’t as pleased recognizing a 5 percent annual return on investment (ROI) (Daft, 2012.) The American leadership believed that a higher ROI should be realized after acknowledging some of the challenges that are involved operating in China (Daft, 2012.) This paper will explore the Shui Fabrics Case Study and its implications on managing in a global environment.
PROBLEM
Ray Betzell, the general manager of a joint venture between Rocky River Industries and Shanghai Fabrics Ltd., was being torn between the two companies. After many years of production Rocky River’s President Paul Danvers wasn’t satisfied with the annual return of 5% (Daft, 2012.) Chui Wai, deputy general manager, believed that Shui was generating just the right level of profit not too much and not too little (Daft, 2012.) Although Chui Wai believed production and profits were well, his partner didn’t agree. Paul Danvers desired an annual return of around 20% based on the amount of years in service (Daft, 2012.) Based on their differing perceptions on how well the company was performing, made the American group think about other possible options. The differing ways that they looked at the problems are Individualism and Collectivism. Individualism reflects a value for a loosely knit social framework in which individuals are expected to take care of themselves (Daft, 2012, p107.) Collectivism means a preference for a tightly knit social framework in which individuals look
References: Boone, L. E., & Kurtz, D. L. (2011). Contemporary Business. United Kingdom: John Wiley & Sons. Daft, R.L. (2012). Management (10th Ed.). South-Western Cengage Learning Publishing Company. Heizer, J., & Render, B. (2006). Principles of Operations Management (6th Ed.). Pearson Prentice Hall.