Shui Fabric Essay

821 Words Oct 23rd, 2012 4 Pages
Shu Fabrics Case Study
Cecily Rodgers
Modern Management
Charles Milazzo
Oct. 28 , 2012

I. Ray Btzell vs. Chiu Wai

Shui Fabrics was a joint venture between America-based Rocky River Industries and Shanghai Fabrics. After loss of investments and obstacles were overcome, Shui fabrics began profiting after several years passed. In response to the profits, Ray Btzell and his bosses were more concerned with the performance orientation. Btzell and the American investors were concerned with gaining more than a 5% return on investment and somewhat closer to 20%. The performance orientation places high emphasis on performance and rewards people for improvements and excellence (Daft, 2010).
In the perspective of GLOBE value
…show more content…
All organizations have their own culture based on language and terminology, behavioral norms, dominant values, and informality/formality (Johnson, 2009). Each side of the joint venture wants to run the company in a way that is deemed important and morally right to oneself. The social context amongst both cultures is also slightly different. China has a higher context culture meaning they are more sensitive to circumstance surrounding social exchange, such as unemployment rate at over 20%. In contrast to China, North America is actually closer to being in a lower social context culture where communication is solely used to exchange facts and information. III. The Solution
In order for both sides to reach a leveled solution, each side should look at each situation and compromise on what would better benefit each sides. Managers will be most successful in foreign assignments if they are culturally flexible and can adapt easily to new situations and ways of doing things (Samson & Daft). At common ground, Shui fabrics would have to produce more profits before a higher ROI could be implemented. In order to produce the better profits, there should be some costs that are cut in various categories. As time progress, Shui fabrics would be a more profitable company and at that time Shui fabrics could afford to have a performance orientation an amount of 20% would be more

Related Documents