Shui Fabrics Essay

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Shui Fabrics Ray Betzell has been the general manager of a joint venture between Ohio based Rocky River Industries and Shanghai Fabrics Ltd. Ten years ago, Rocky River launched Shui Fabrics as a 50-50 joint venture between the U.S. Textile manufacturer and the Chinese company to produce and dye coat fabric that would be sold to both Chinese and international sportswear manufacturers. Betzell was beginning to feel like he was caught in the middle because his boss Paul Danvers, the president of Rocky River, was starting to grow frustrated with the 5% ROI Shui Fabrics was producing. Mr. Danvers felt that wasn’t enough and that there should be a 20% ROI after three years in business. Chiu Wai is Betzell’s Deputy General Manager and Wai was pleased with the way things were going and felt that the joint venture was fulfilling his expectations, those of the local government, and party officials who were keeping careful tabs on the enterprise. In this case we shall analyze differences between Betzell and Wai in terms of the GLOBE project values dimensions, the difference most central at hand, a strategy to handle the issue and the benefits of implementing the recommended strategy. GLOBE Project differences According to the GLOBE Project dimensions there are four of the nine dimensions that apply to this case analysis. The first dimension is uncertainty avoidance. This refers to the norms rules and procedures to manage the unpredictability for future events. In high uncertainty avoidance societies, unknown situations are looked at as threatening so therefore members of the society or organization try to reduce future uncertainty by seeking orderliness, consistency, structure, formalized procedures and laws (Alysworth). The United States has very low uncertainty avoidance whereas China has high uncertainty avoidance (Daft). The difference is evidenced by Wai

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