Shui Fabrics Case Study Essay

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Shui Fabrics: A Critical Analysis of a Global Problem

Shui Fabrics: A Critical Analysis of a Global Problem
In this paper we will discuss the Shui Fabrics Case Study and its implications on managing in a global environment. The research of case studies gives us the opportunity to understand and apply the lessons we have learned in the course.
The case explains that for 10 years, Shanghai Fabric Ltd., a Chinese fabrics company, and Rocky River Industries, a United States textile manufacturer, have been part of a 50-50 joint venture to produce dye and fabric. This venture, called Shui Fabrics, produced dye and coat fabric for domestic and international sportswear markets. Ray Betzell, general manager for five of
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There are two sides to the problem, the Chinese and the American, and Ray is the only one who can see both of them. The reasons for these two points of view are the socio-cultural differences that exist among countries. Culture is what defines a country and it can be composed of the language, values, religion, models of conducts, and beliefs, among others. There are many cultural differences between China and the U.S. China has a strong sense of hierarchy and respect towards figures of authority. For example, the vice president of a company might decline to participate in a very lucrative opportunity if it meant going over the president and his boss. This is a behavior that many Americans would find difficult to understand because their priority would be to make money. Another example is the role women play in business world. Even though the number of professional Chinese women has grown, men still think they are inferior, which is why when they see a woman succeeds in a position usually occupied by men; she earns great respect (Fang, 2008). This is actually something that other countries looking to enter Chinese market can use to their advantage. These and the many other cultural differences that exist between China and the U.S. explain why they see the problem in a very different way. Based on these differences, if Rocky River decides to pull out of the venture, it will be very difficult for the Chinese to trust the
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