Shui Fabrics Question 1 Ans

Economic factors take economic growth, interest grade, commutation rates and theinflation rate. These factors have major impacts on how subscriber linees operate and makedecisions. For example, interest rates affect a firms cost of capital and and so to what purpose a telephone circuit grows and expands. Exchange rates affect the cost of exporting goods and supply and price of imported goods in an economy. There argon economic differences that influence the relationship surrounded by the partners at Shui Fabrics.Chiu Wai, operated Shanghai Fabrics LTC set in chinaware, before it became a go take a chance with Rocky River Industries in the United States. When the companies became a venture, Chiu Wai became the Deputy General passenger vehicle for Shui Fabrics in China and venturing confederation 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 finishings break-dance miserably.Managers mustiness do their planning and learn the business ethic and culture lifestyles before even con officering venturing into markets in different counties. To me it seems like neither of the managers did their homework and are having problems maintaining the economic factors that influence their company. A developing country is a non-industrialized poor country that is seeking to develop its resources by industrialization. A genuine country is a country that has a high level of increment according to some criteria such as in be intimate per capita and industrialization.Political-Legal factors include discrimination, consumer, antitrust, employment, and health and refuge law. They also include how and to what spot a g everyplacenment intervenes in the economy. Specifically, semipolitical factors include areas such as tax policy, labor law, environmental law, disdain restriction tariffs, and political stability. These fact ors can affect how a company operates, its costs, and the demand for its products. Political factors may also include goods and serves which the g all overnment wants to provide or be provided and those that the government does now want to be provided.Furthermore, governments have abundant influence on the health, education, and infrastructure of a nation. Political officials are termination to be a big part of the team because they have self-coloured influence on economic life in China. Ray must reach out to them and understand their goals. Success will depend on the ad hominem involvement of top executives. The partners differ dramatically in wrong of what constitutes an acceptable financial return. Chiu Wai is happy with achieving a 5% to 6% proceeds and believes he is viewed as a local hero.Upon achieving his goal he feels that he has done a good job for his country morally and for their side of enterprise by creating jobs for close to 3,000 people. He wants to grow the s cope of Shui Fabrics and generate a national brand. Ray Betzell wants a 20% ROI and will unaccompanied consider growth if it improves make headwayability, has no interest in creating employment unless it improves the undersur impudence line, is considering maybe having to layoff employees to improve bottom line. He wants to improve quality, and sees no good to creating a Chinese brand because it views China as a affordable manufacturing platform rather than a market.Social factors include the cultural aspects and include health consciousness, populations growth rate, age distribution, career attitudes and emphasis on safely. Trends in companionable factors affect the demand for a companys products and how the company operates. With this being said, Ray of necessity to move outside his personal still zone as a manager. There seems to be a escape of clear, helpingd strategy amongst the two partners. When the company started 10 commodious time ago, Rocky River has launched Shui Fabrics, a 50/50 joint venture between the U. S. extile manufacture and the Chinese company, to produce dye, and coat fabric for sale to twain Chinese and international sportswear manufacturers. Intent seemed clear in ascendent after many obstacles, considerable red tape and several currency losing years the joint venture was fulfilling China expectations and those of local government and companionship officials. It seems there was once a clear strategy that has been forgotten over the course of ten years. Another social factor that is different between the partners would be that a profit over 20% return on investment may be perceived as Western exploitation.When it comes to doing business in China, respect for peoples feelings is paramount this sensitivity that needs to be taken in respect to peoples face. Face a cliche, is the currency of advancement. Its like a social bank account. You spend it and you save it and you invest. And when you take away somebodys face you t ake way someones fundamental sentience of security. Because of Chinas history of exploitation by foreign countries who annex China or raided China for business purposes, particularly in the business sphere, Chinese do not want to be seen culturally as having been had by Western usinesspeople. (http//www. nytimes. com/2010/12/14/business/global/14iht-busnav14. html)Chiu Wai is rejoicing with the way the company is operating and feels that Shui is generating just the right level of profit especially because many U. S. -Chinese joint ventures are still operating in red tape. He sees no reason why Rays American bosses shouldnt be more than satisfied with their 5% yearly return on investment. This tells me that Chiu is unclear of his companys strategic goals. Without a clear strategy it is impossible to choose right structure and extent of cooperation with a foreign partner.Unfortunately Chiu Wai attitude at Shui Fabrics jeopardizes the success of joint venture investment. As you can see the partners dont share the same vision or philosophy at Shui Fabrics, the joint venture within China and the U. S. The disparity in viewpoints can dramatically stymie performance. In order for them to make the company succeed they need to come up with a clear, shared strategy that they both can accept and understand. Power Distance is the extent to which a community accepts and endorses authority, power differences and military position privileges.In China, social relationships are formal, hierarchical. People mostcomfortable in the presence of a hierarchy in which they know their position andthe customs/rules for behavior in the situation. The Americans social relationships are informal, egalitarian. People mostcomfortable with their social equals importance of social rankings minimized. 2. hesitation avoidance is the extent to which a family, organization, or group relies onsocial norms, rules, and procedures to alleviate the whimsey of future events. In China, obligati on relationships with other people involve reciprocalobligations.In American, obligation people avoid interdependent relationships andsituations that might entail long term obligations. 3. Individualism and collectivism Individualism stands for a society in which the ties between individuals are loose and everyone is expected to look after him/herself and hisor her agile family only. Collectivism stands for society in which people from birthonwards are integrated into concentrated cohesive in-groups, which throughout peopleslifetime continue to protect them in fill in for unquestioning loyalty. The Chinese are collectivist because they place higher encourage on groupcooperation and individual modesty.The Americans are individualism because they place higher look upon on self-reliance. Self-promotion is more accepted. High value on freedom from externallyimposed constraints. 4. masculinity/femininity indicates the extent to which dominant values in a society tendto be assertive and look more implicated in things than in concerning for people and thequality of life. The Chinese are relationship-oriented maintaining a harmonious relationshiphas priority over accomplishing tasks. Americans have task-oriented relationships that are less important than gettingthe work done. 5.Assertiveness is the stage to which individuals are assertive, confrontational, andaggressive in their relationships with others. The Chinese avoid direct confrontation, open criticism, and controversionaltopics. fretfulness maintaining harmony and with face. Americans are willing to confront directly, criticize, discuss controversionaltopics, press personal opinions about what they consider the truth. Little concernwith face. 6. Future Orientation is the degree to which a collective encourages and rewards futureoriented behaviors such as planning and delaying gratification.The Chinese pay relatively more attention to the past and the longer termfuture. Americans are less interested i n the past they focus on the near-term future7. Gender differentiation is the degree to which a collective minimized gender inequality. In China, traditionally a persons status in the society was based importantlyon genetic characteristics such as age, gender, and family. This is changing. In America, traditionally a persons status in the society was based importantlyon inherited characteristics such as age, gender, and family. This is changing. 8. Performance orientation