Shui Fabrics Essay

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Shui Fabrics Lisa Collins Modern Management Dr. Milazzo 1/27/2012 Shui Fabrics Ray Betzell, the general manager of an overseas venture with Shanghai Fabrics Industry and Rocky River Industries, is torn between the two companies. Chui Wai, deputy general manager of Shui Fabrics, believed that Shui Fabrics has a good balance for the return on investment (ROI) at 5% and that this was the right level of profit, “not too much and not too little” (Daft, 2010). Paul Danvers, president of Rocky River Industries, feels that the annual return should be somewhere around 20% because of the number of years that the companies have been partnering together. Ray Betzell and Paul Danvers discussed the production of the company and the output. Danvers also gave two options: terminating the contract with Shui Fabrics or coming to an agreement on how to generate a better ROI. Describe the differences between Ray Betzell’s and Chiu Wai’s perspectives on Shui Fabris ROI in terms of the GLOBE Project value dimensions. The differences between Ray Betzell's and Chiu Wai's perspectives on Shui Fabris ROI can be discussed in the differences and dimensions of their economies of origin which have different levels of status quo. There is also a difference in the level of infrastructure development and disparity among its citizens as well as different economic and social needs. This builds the foundation of describing Chui Wai and Ray Betzell perspectives on Shui fabrics in terms of the globe project value dimension. Chui Wai is from a developing economy. Developing economies are characterized with lower level of technology and infrastructure. In developing countries, there is availability of cheap labor and raw materials and the exchange rate is not so volatile; it is also important to point out that there is high political risk in terms of political aspect
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