CaseStudyofShenzhenFiltroil
Running head: CASE STUDY OF SHENZHEN FILTROIL
Case Study of Shenzhen Filtroil: Finding Balance
Xiangyu Zhang, James
The George Washington University
11/13/2014
How did Shenzhen Filtroil end up with these problems? In this case, generation of the problems for Shenzhen Filtroil can be separated as three phases and five different ‘signals’ (See Table #1). Various problems in different phases finally lead to problems in communication, value creating and sharing, and working attitude. The following analysis is based on distinct phases. During the ‘honeymoon’ phase, Thomas and Qian build an excellent supplier-buyer relationship with Liu (Yeman and Isabella, 2009, p. 5), which not only brings Liu all the business but also sows the seed for the following problems. Despite of advantages achieved by this relationship, however, Shenzhen Filtroil lost incentives to look for other possible suppliers since the suppliers gain familiarity with the client (Martinez-Jerez, 2014, p. 66), which result the complacent of Liu in the end. Then, the imprudent merge dispenses the paper work (Yeman and Isabella, p. 6), yet keeps the zinc formula in Liu’s hand. Thus, like problems of other vertical integrating business (Martinez-Jerez, p. 66), Shenzhen Filtroil lost their core resource for the business. From time to time, company shows passiveness when Liu dominates the supply chain. Among the ‘cold war’ phase, since Liu’s and Qian’s employees are not working together well (Yeman and Isabella, p. 5) and there is not any joint governing structures (Martinez-Jerez, p. 64) allow people to communicate and address problems. A relatively small defect problem firstly results in argument between Qian and Liu and then a severe communication problem that Liu only speaks with Qian in absolutely necessary conditions (p. 9). Then, things come into the ‘conflict’ phase with Liu’s unreasonable requests and attitude problems (p. 9). On one hand, partners no longer focus on value creation but
Case Study of Shenzhen Filtroil: Finding Balance
Xiangyu Zhang, James
The George Washington University
11/13/2014
How did Shenzhen Filtroil end up with these problems? In this case, generation of the problems for Shenzhen Filtroil can be separated as three phases and five different ‘signals’ (See Table #1). Various problems in different phases finally lead to problems in communication, value creating and sharing, and working attitude. The following analysis is based on distinct phases. During the ‘honeymoon’ phase, Thomas and Qian build an excellent supplier-buyer relationship with Liu (Yeman and Isabella, 2009, p. 5), which not only brings Liu all the business but also sows the seed for the following problems. Despite of advantages achieved by this relationship, however, Shenzhen Filtroil lost incentives to look for other possible suppliers since the suppliers gain familiarity with the client (Martinez-Jerez, 2014, p. 66), which result the complacent of Liu in the end. Then, the imprudent merge dispenses the paper work (Yeman and Isabella, p. 6), yet keeps the zinc formula in Liu’s hand. Thus, like problems of other vertical integrating business (Martinez-Jerez, p. 66), Shenzhen Filtroil lost their core resource for the business. From time to time, company shows passiveness when Liu dominates the supply chain. Among the ‘cold war’ phase, since Liu’s and Qian’s employees are not working together well (Yeman and Isabella, p. 5) and there is not any joint governing structures (Martinez-Jerez, p. 64) allow people to communicate and address problems. A relatively small defect problem firstly results in argument between Qian and Liu and then a severe communication problem that Liu only speaks with Qian in absolutely necessary conditions (p. 9). Then, things come into the ‘conflict’ phase with Liu’s unreasonable requests and attitude problems (p. 9). On one hand, partners no longer focus on value creation but