Essay on Shui Fabrics Question - Ans
Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions.. There are economic differences that influence the relationship between the partners at Shui Fabrics. Chiu Wai operated Shanghai Fabrics LTC located in China, before it became a joint venture with Rocky River Industries in the United States. When the companies became a venture, Chiu Wai became the Deputy General Manager for Shui Fabrics in China and venturing company Rocky River Industries located in US. Ray Betzell who is the General Manager for Shui Fabrics came to China from Rocky River Industries. Many companies who do business in others countries and …show more content…
I think all of the GLOBE Project dimensions would help us understand the differences between Chinese and American perspectives
Shui’s core problem is that Rocky River’s president Paul Danvers is not satisfied with 5 percent as an ROI. He would like to stretch it to something like 20 percent. Therefore, he’s not satisfied with the profit Shui is generating.
Sociocultural differences had a great influence with the problem Shui is facing. Americans tend to have a strong ethnocentric attitude where, like Paul, thinks their way would always be the best way in handling things even they are operating in a foreign country. He doesn’t seem to understand or mind the difference between their culture with the Chinese’s. If I was Ray, I would remind Paul about the social and cultural difference of our partner with us. Look at what other successful companies did, we can also improve our success by paying attention to the culture of our partner. We should be flexible and meet in the middle. Cultural differences, like how Chiu Wai thinks and see things, would always affect our working relationship with them but interpreting the culture where the organization is and developing sensitivity would avoid the costly