Business Communication
Chapter 3
Shui Fabrics Case Study
1) Differences in Economics, Legal-Politics, and Society would create conflict between the two companies in culture, the way of thinking, controlling, managing, or developing.
The Difference in Perspective between Chinese and American using GLOBE Project dimensions
Chinese
American
Humane orientation
Concerned about job creation
3000 jobs made a real contribution to the local economy
Does not want to cut jobs
Relationship orientated
Performance orientation
Wants to see better economic performance, higher profits
Expect more than 20% ROI, not content with 5% ROI
Thinking of pulling the plug on Shui if performance does not improve
Task orientated
2) Both sides should come to a compromise and maybe give Shui more time to take action to produce higher profits. Shui could also increase efficiency and cut costs in order to boost their profits. The American side should not take such a drastic measure and should give Shui reasonable time to become more performance orientated in the future.
3) Licensing could be another viable option. The American could license to the Chinese, so that their cost to enter foreign operations will be reduced. They will still have control, however, they may not have as much control as compared to the joint-venture. Thus, with less intial costs involved, Rocky RIvers expectations of