Shi Fabris Case
Ateneo Graduate School of Business
Ateneo-Regis MBA
Rockwell Center, Makati City
September 12, 2014
Juan Carlo G. Gagate Management Dynamics R09
R140001 Prof. Rosauro V. Sibal
Shui Fabrics
(A Case Study)
Problem:
In todays “borderless” business world, arises a misalignment on the organizational goal expectation on Return of Investment of Shui Fabrics, (a China-based, 50-50 joint venture involved on the production of dye and coat fabrics for sale to local and international sportswear manufacturer.) between American company (Rocky River Industries), and its Chinese counterpart (Shanghai Fabric Ltd.).
Chiu Wai, the company’s Chinese (Regarded to posses high cultural context, considering its effect on the local economic environment & addressing the unemployment issue of China thus avoiding being in hot waters with local authorities) deputy general manager, has a profound content on the 5% annual ROI, surpassing its local counterpart.
Paul Danvers, president of the American (with Americans regarded to have low cultural context, geared towards business goal achivements) partner company is rallying his frustrations for not reaching the annual ROI of 20%.
Ray Betznel, the Joint Venture’s (Shui Fabrics) general manager is caught between the decision of the American partner company through its president, Paul Danver’s directive for greater efficiency through sophisticated technology while reducing a significant number in workforce.
There is a problem on information dissemination on the part of Ray, the American GM of the joint venture to Chui Wai, the Chinese deputy GM as brought about the differences on their social context levels resulting to the confusion on the way both GM’s look towards profit.
The Political and legal constraints, plus considerable red tape on doing business in China, as mirrored by the uncertainty surrounding the periodic, often contentious US-Chinese textile trade negotiations is
Ateneo-Regis MBA
Rockwell Center, Makati City
September 12, 2014
Juan Carlo G. Gagate Management Dynamics R09
R140001 Prof. Rosauro V. Sibal
Shui Fabrics
(A Case Study)
Problem:
In todays “borderless” business world, arises a misalignment on the organizational goal expectation on Return of Investment of Shui Fabrics, (a China-based, 50-50 joint venture involved on the production of dye and coat fabrics for sale to local and international sportswear manufacturer.) between American company (Rocky River Industries), and its Chinese counterpart (Shanghai Fabric Ltd.).
Chiu Wai, the company’s Chinese (Regarded to posses high cultural context, considering its effect on the local economic environment & addressing the unemployment issue of China thus avoiding being in hot waters with local authorities) deputy general manager, has a profound content on the 5% annual ROI, surpassing its local counterpart.
Paul Danvers, president of the American (with Americans regarded to have low cultural context, geared towards business goal achivements) partner company is rallying his frustrations for not reaching the annual ROI of 20%.
Ray Betznel, the Joint Venture’s (Shui Fabrics) general manager is caught between the decision of the American partner company through its president, Paul Danver’s directive for greater efficiency through sophisticated technology while reducing a significant number in workforce.
There is a problem on information dissemination on the part of Ray, the American GM of the joint venture to Chui Wai, the Chinese deputy GM as brought about the differences on their social context levels resulting to the confusion on the way both GM’s look towards profit.
The Political and legal constraints, plus considerable red tape on doing business in China, as mirrored by the uncertainty surrounding the periodic, often contentious US-Chinese textile trade negotiations is
References: Daft, Richard L. (2012). New Era of Management: Concepts and Application, 2nd Edition. Pasig City, Philippines: Cengage Learning Asia Pte Ltd