Shui Fabrics

Shui Fabrics

Describe the differences between Ray Betzell's and Chiu Wai's perspectives on Shui Fabrics' ROI in terms of the GLOBE Project value dimensions.

Shui Fabrics is a company of fabric which is situated in China. Shui Fabrics is a joint venture of 50%-50% between Shanghai Fabric Ltd., Chinese company and Rocky River Industries, U.S. Textile manufacturer. Shui Fabric produces coat fabric and dye for international and domestic sportswear markets. There are many differences between the Chinese and American views of the company.

The main difference between Ray Btzell's and Chiu Wai's perspectives on Shui Fabrics' ROI in terms of the GLOBE Project value dimensions is Chiu Wai was a Chinese deputy general manager's and his point of view on the return on investment (ROI) was that they generate an appropriate level of profits “not too little and not too much”; he was satisfied with the 5 percent ROI. Whereas, the prime focus of Ray Betzell's was performance orientation. Ray Betzell's was the American general manager and he basically wanted to see higher sales and profit and economic performance. The different perspectives of the two companies on the ROI have created a conflict with Paul Danvers who was the president of Rocky River Industries.

Explain which of these differences is most central to the issue at hand and why.

The most central issue of this situation is the different views on the ROI and performance orientation. The American company wants an elevated ROI of 20 percent and the Chinese are contented with the present 5 percent. The Chinese manager recognized that he was making a profit and it was steady. It was enough profit to demonstrate performance but not so much for the government to take notice. The joint venture in China created jobs in a country where there is high unemployment; Shui Fabrics was ...