Shui Fabrics

[Name of the Instructor]

Abstract

Current studies by the GLOBE project broadens Hofstede's evaluation and presents a clearer understanding for managers today. The GLOBE (Global Leadership and Organizational behavior Effectiveness) research used statistics from eighteen thousand managers in sixty two countries which led to identifying nine aspects that explain cultural differences, as well as those identified by Hofstede. This paper will describe the basic dissimilarities between the two managers perspectives on the SHUI Fabrics' ROI in relation to the GLOBE project value. The aim is to highlight the differences which are central to the issue at hand and devise a strategy which will address the stated issues, as well as its benefits. It will also clarify how the strategy will pacify Ray's boss in the United States. 

Table of Contents

Introduction4

Differences Between Ray and Chiu's Perspectives4

Which Difference is the Most Central Issue6

Strategy to Address the Problem6

Conclusion8

References9

Shui Fabrics

Introduction

Shui Fabrics is a fabric company based in China. The company is a fifty-fifty joint venture between Shanghai Fabric Ltd., Chinese company and Rocky River Industries, U.S. Textile manufacturer. The company produces dye and coat fabric for domestic and international sportswear markets. There are several differences between the American and Chinese views of the company. This paper will discuss some of the ways the two countries differ in regards to the GLOBE project value dimensions.

Differences Between Ray and Chiu's Perspectives

Ray Betzell who is the general manager of an overseas venture with Shanghai Fabrics Industry and Rocky River Industries appears to be torn between the two companies. Though he spent many years of producing; Rocky River's President Paul Danvers was not pleased with the company's annual returns on investment (ROI) of 5%. Chui Wai who is a deputy general manager, believed that Shui Fabrics had a good balance for the ROI and that there was the right level of profit, “not too much and not too little.” Paul Danvers felt that the annual return should be somewhere around 20% because of the amount of years that they were in partnership.

There are differences between Ray and Chiu's viewpoints on Shui Fabrics' ROI in relation to the Global Leadership and Organizational behavior Effectiveness (GLOBE) Project value dimensions. There is an obvious difference in infrastructures between the two companies due to the fact that they are from different countries (China and the United States). The two countries economic development is not the same either. Additionally, and perhaps the biggest difference, they both differ in their cultural orientation. Chiu's country is more humane orientated where there is concern about job creation and they are more relationship orientated. This is indicated through the government remaining pleased with the fabric company to employ 3,000 people. Though the U.S. is now concerned with job creation, years ago the U.S. was more performance oriented. There were company desires to see better economic performance and higher prices and lacked a caring relationships with employees.

Chiu Wai, Chinese deputy general manager's, point of view on the return on investment (ROI) is that they generate an appropriate level of profits “not too little and not too much”, he is ...