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 RIver's expectations of