Trouble In Paradise

2594 Words11 Pages
Case 6: Trouble in Paradise | | | | | | | | Contents 1. SUMMARY 3 2. ANSWERS ON QUESTIONS 7 3. Conclusion 11 4. references 13 Summary The case Trouble in Paradise is about a development strategy a company should choose. Zhong- Lian Knitting Company Limited is a 50/50 joint venture between Suzhou First textile and U.S partner Heartland Spindle Company. As a joint venture, company has existed for ten years. Mike Grave, the forth general manager in China was just preparing the speech for 10th anniversary of joint venture. The most important things he was intended to say were connected to joint venture progress toward world class quality. But on the other side, Mike got a proposal for another acquisition with new Chinese company called Hua Ying. Mikes boss Bill Windler was frustrated when Mike told him about new proposal.” A 4% ROI is pathetic. We’ve been in there 10 years, Mike. The numbers should look better by now.”- these were Bill's words. Also Bill added that number of employees exceeds by 1,200 people. It was the problem that should be fixed fast. On the opposite side is Chinese proposal for new acquisition with different vision and business objectives. Chinese partners would never agree to drastic moves such as the layoffs suggested by Windler. At first glance we see two opposite points of view of the same thing. Actually, American side is concerned about continuous expansion including business aim of achieving 20% ROI through greater efficiency and more automation and Chinese side goal is protection of jobs. Mike came in very difficult and confusing situation- decision making process should start. He was aware of the fact that two countries in which joint venture was operating its activities were extremely different. Despite to all these differences, Mike had adapted himself very well in Shanghai.

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