Shui Case Study

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Shui Fabrics Case Study Shui Fabrics: Case for Critical Analysis Introduction Shui Fabrics is a 50-50 partnership between Rocky River Industries, a United States textile manufacturer, and Shanghai Fabric Ltd., a Chinese fabrics company. They have been successfully producing and dying coat fabric for sale to international sportswear manufacturers for ten years. Ray Betzell, the general manager for five years discovered the following international differences resulting in a conflict of expectations being met (Daft, 2012, p. 119). 1a. The main economic differences between the partners of Shui Fabrics is the unemployment rate (close to 20 percent, Daft, 2012, p.19) and an inexpensive labor in China compared to America. The legal-political differences are China’s “view of profits made by Western companies on Chinese soil” as exploitative, and tariffs can be changed at any time. Sociocultural differences are Chinese concerns for the local economy, while United States wants to make a 20% ROI to benefit their investors. 1b. The cultural differences the Americans and Chinese are experiencing can be seen in that the United States rates highly in performance orientation (high emphasis on performance), while China is highly rated in Gender Differentiation (society maximizes gender role differences) in regards to the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project value dimensions (Daft, 2012, pp. 106-107). It would benefit the management in the United States to be aware and understand these cultural differences to enable a realistic expectation from the Chinese partnership. 2a. Shui’s core problem is that the American partners want to improve or increase the annual return on investment. The annual return on investment of the company has been 5%. This has been accepted by Chiu Wai and local officials as success, but Paul Danvers, the
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