Shui Fabrics: Critical Analysis of a Global Problem Introduction Shui Fabrics is a China based fabric company that is a 50%-50% joint venture between a Chinese company and U.S. Textile manufacturer. At present‚ it produces dye and coat fabric for both domestic as well as international market. There will be a discussion of differences between American and Chinese perspectives on Shui Fabrics ’ ROI by using the Global project dimensions. Along with this‚ a strategy will be also discussed to addressing
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Ray Betzell‚ the general manager of a joint venture between Rocky River Industries and Shanghai fabrics Ind.‚ was being torn between the two companies. After many years of production Rocky River’s President Paul Danvers wasn’t satisfied with the annual return of 5%. Chui Wai‚ deputy general manager‚ believed that Shui was generating just the right level of profit not too much and not too little. Although Chui Wai believed production and profits were well‚ his partner didn’t agree. Paul Danvers
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Rana‚ Erec C. Management Dynamics SHUI FABRICS: A CASE STUDY I. PROBLEM Low return on investment is the main problem of Shui Fabrics as to US standards. It has stuck to 5% for three years and the Rocky River President expects 20%. II. OBJECTIVE To increase the return of investment of Shui Fabrics to 20% or better. III. ANALYSIS OF RELEVANT FACTS 1. Shui Fabrics is a 50-50 joint venture between the US textile manufacturer
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Case Analysis: Elektra Products‚ Inc. I. Statement of the Problem: This case is about the implementation of an employee involved and empowered organization at Elektra ProductsInc. The top management recommended to implement such as to permit managers to follow a product from design to sales to customer; allow sales employees to get an on the spot refund of $500 worth of merchandise; make information available to sales people about future products and swap sales and manufacturing employees for
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Shui Fabrics Ray Betzell‚ the general manager of a joint conjecture amongst pugnacious River Industries and Shanghai fabrics Ind.‚ was being torn mingled with the two companies. After many years of production Rocky Rivers President capital of Minnesota Danvers wasnt satisfied with the annual return of 5%. Chui Wai‚ deputy general manager‚ believed that Shui was generating just the business level of profit not too much and not too little. Although Chui Wai believed production and profits were
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would you characterize the main economic legal-political and sociocultural difference influencing the relationship between the partners in Shui Fabrics? What GLOBE project dimensions would help you understand in Chinese and America perspectives illustrated in the case? Answer: the differences influencing the relationship between in partners in Shui Fabrics are: Chinese America Humane orientation - Concerned about job creation - 3000 jobs made a real contribution to the local economy - Does
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THE CASE OF SHUI FABRICS ******************************************** Problem: 1. The Return of Investments of Shui Fabrics is low at only 5% in the past 3 years 2. The Chinese political and sociocultural had affected their assertiveness in growing their business‚ so Ray is faced with problem if he has to continue or shut down the business Objectives: 1. Increase the ROI of Shui Fabrics which is aimed by Paul Danvers their president @ 20% 2. Decide whether to continue or stop manufacturing business
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socio-cultural differences influencing the relationship between the partners in Shui Fabrics? What GLOBE Project dimensions would help you understand the differences in Chinese and American perspectives illustrated in the case? Although Shui Fabrics pulled off a 5% ROI within 3 years‚ Rocky River Industries an American partner is ready to pull the plug on Shui. A 5% ROI is great for Chiu Wai the Chinese general manager Shui but not Ray who needs the company’s bottom line closer to 20%. Chiu is more
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Shui Fabrics Case I. Statement of the Problem The company wants to improve or increase the annual return on investment. 10 years ago‚ the company ventured to China to lower labors costs of Rocky River Industries. It suffered money losing from the day it started its operations and interference from the Chinese government. Currently the annual return on investment of the company has been 5% for the past 3 years
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Shui Fabrics Case Study October 28‚ 2010 With the case presented on Shui Fabrics‚ the main problem is the labor cost; it is contributing to the low ROI of 5%. The main objective of Shui Fabrics is to improve the ROI from 5% to 20%. Ray Betzell can have a list of alternatives that he may consider to improve their ROI. One is to increase the sales in the Chinese market and internationally. But this option is incontrollable. It is depending on the marketing strategy that Ray will provide
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