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Shui fabrics a major analysis of a global problem


In this paper we will certainly discuss the Shui Materials Case Study as well as implications in managing in a global environment. The research of case studies gives all of us the opportunity to understand and apply the lessons we have learned in this time. The case explains that to get 10 years, Shanghai in china Fabric Ltd., a China fabrics firm, and Rugged River Sectors, a Us textile maker, have been a part of a 50-50 joint venture to make dye and fabric. This venture, called Shui Fabrics, produced color and coating fabric intended for domestic and international sportswear markets.

Ray Betzell, basic manager intended for five with the 10 years, found himself during a tough circumstance (Daft, 2012, p. 119).

The objective of the case study is always to identify the key problem, examine its implications, and combine the supervision skills we now have learned in the course. I will go over the differences between the American and Chinese views of the company in regards to the Global Leadership and Organizational Habit Effectiveness (GLOBE) project benefit dimensions [ (Daft, 2012, pp.

106-107) ]. We will also find out importance of exploring the socio-cultural values of the country we would like to do business with.


Ray Betzell has a issue. On one part, the Rugged River director and Ray’s boss, Paul Danvers, was unhappy with the 5% returning of expenditure (ROI) the organization was creating and would like Ray to find solutions or perhaps they would take out of the joint venture, while looking at staying in China. On the other side, the Chinese mouthpiece general director was actually happy with the venture because it was having a impact on the neighborhood economy by providing jobs, and producing the right amount of profit allowed by the federal government. The problem is that Ray Betzell needs to find a way to convince his employer that Shui Fabrics provides actually got the best bargain, if you take into account that China is a very difficult market to enter, and that it includes great likelihood of growth. You will discover two sides to the difficulty, the Oriental and the American, and Ray is the only one who can discover both of them.

The reasons for these two-points of view are the socio-culturaldifferences that exist between countries. Lifestyle is what specifies a country and it can be consists of the language, values, religion, types of conducts, and beliefs, and the like. There are many ethnical differences among China plus the U. H. China includes a strong feeling of hierarchy and respect towards characters of expert. For example , the vice president of your company may possibly decline to participate in an extremely lucrative opportunity if it designed going over the president wonderful boss. This really is a habit that many People in the usa would find difficult to understand because their particular priority will be to make money. One more example is definitely the role girls play running a business world. Even though the number of professional Chinese ladies has grown, males still think they are second-rate, which is why after they see a woman succeeds in a position usually busy by males; she gets great admiration (Fang, 2008).

This is actually a thing that other countries looking to enter into Chinese marketplace can use for their advantage. These types of and the various other cultural differences that exist among China plus the U. H. explain so why they see the problem in an extremely different method. Based on these types of differences, if Rocky Lake decides to out of the enterprise, it will be extremely tough for the Chinese to trust the business and the American business on the whole again. It will be very difficult to get the China to understand why the American business thought Shui Fabric was a failing because for them it was the other.


The GLOBE project value dimensions discovered five measurements that global managers are able to use to explain ethnical differences between countries. Based upon the case information we can we can identify many differences. The first big difference deals with the humane alignment dimension, since it relates to taking care of the people. The Chinese possess a high lack of employment rate, meaning they are worried about job creation. The joint venture has been successful in their thoughts because it has created about several, 000 jobs, which is a big contribution to the local overall economy. On the other hand, the Americans think they should lay down off workers to earn a higher earnings. Therefore , the Americans are more concerned about earning money than featuring the jobs which have been helping the individuals (Daft, 2012, pp. 106-107, 119). The 2nd difference deals with the performance orientation sizing. The Chinese and the People in america have different functionality expectations.

Chiu Wai, theChinese deputy standard manager, believes that the five per cent ROI the fact that Americans happen to be earning is suitable because earning more than that probably would not be seen well by government. The American director of Rocky River feels the 5% ROI is usually unacceptable as they was seeking to me making around twenty percent (Daft, 2012, pp. 106-107, 119). Equally companies include very different performance expectations. Another difference pertains to the future positioning dimension. The Americans aren’t really taking into consideration the long term achievement Shui Fabric has shown, based on how difficult it had been to enter the Chinese marketplace. They are also certainly not considering the long term long term good results they will probably would encounter based on the huge Chinese marketplace, and the decrease wages they pay to Chinese staff.

Rocky River is more concerned with quick satisfaction than long term results (Daft, 2012, pp. 106-107, 119). It is Ray Betzell’s responsibility, as a administrator who understands both the Chinese and American views, to explain all the conceivable opportunities that Shui Fabric can bring to Rocky River. He should use the WORLD dimensions to describe the ethnical differences involving the Chinese and the U. S i9000. and how pulling out of the opportunity could perform more harm than great. Ray should also try to ensure that the Chinese be familiar with Americans standpoint on success. There might be for you to renegotiate with Shanghai Fabric if they can understand the American’s socio-cultural views on business. These are actions Beam could follow as a global manager.


Evaluate just how your management skills are advancing and how you will apply your knowledge to integrate persons working in a worldwide team environment. Again, combine knowledge obtained in this unit. I do certainly not work for a business that has virtually any plans of expansion to other countries. However , with regards to socio-cultural differences, we need to understand that we stay in a country that is rich in selection. There are people from many countries residing in the United States who came with their particular culture and values.

As being a manager, I am able to apply the knowledge and skills I have obtained in this course to understand the behavior of my personal coworkers and direct reports who originated from foreign countries. I may necessarily ought to travel to a foreign country to have and develop cultural intelligence. As managers of a diverse workforce, all of us also need to “reason and see unfamiliar gestures andsituations and devise the right response [ (Daft, 2012, p. 109) ].


I came across this case analyze very interesting because sometimes I really do not even consider the many socio-cultural differences that exist between countries. It was really hard for me to realise why Rocky River could not observe how they have accomplished something that appeared impossible simply by entering the Chinese industry. Based on my learning, I truly believe that we all cannot enter in a foreign nation without doing the appropriate research on the impact we can have got on the persons. We cannot make this kind of a decision together with the sole goal of making cash. It is very clear that the Chinese language places wonderful importance on the people, as a result I believe that if Rocky River brings out of the venture, they will likely fail in other tries to enter in similar legal agreements with other Chinese companies.

They may probably feel disappointed and will reject a company that bases almost all decisions upon money, without having regard upon people. Depending on what I have learned, if I had been the general director, I would make use of all my abilities to try to persuade my manager that we can be making a major mistake if we pull out of a venture which includes brought so much good for the Chinese. Of course , I would utilize forecasting and experience to demonstrate them just how in the near future, we could earn more profit. These are the lessons which i take with myself upon completing this newspaper.


Daft, Ur. L. (2012). Management. Builder: South-Western Cengage Learning. Fang, G. (2008, March 18). U. T. /China Differences and Their Impacts on Business Behaviors. Recovered from Womble Carlyle Sandridge and Rice Web Site:

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Published: 04.02.20

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