Shui Fabrics free essay sample

Wai feels that the company has had a positive impact on the local government and it has also created jobs for a number of people in addition to boosting the economy (Daft, 2010). Although Ray Betzell enjoyed his time in China, the case states that he was aware of the frustrations of Paul Danvers, the President of Rocky River Industries. Danvers was ecstatic that Shui Fabrics had cut Rocky River’s labor cost and it provided the company an opportunity to engage in the Chinese market. However, Danvers felt that since the merger was in existence for 3 years, a 5 percent ROI wasn’t acceptable. He felt that the numbers should have been in the 20 percent range at that particular time. He even went a step further in his displeasure by conferring to Betzell that he felt that it possibly time to sever ties with Shui (Daft, 2010). The GLOBE (Global Leadership and Organizational Behavior Effectiveness) Study is basically an analysis of the cultural, societal, organizational, and leadership differences between 62 different societies around the world (â€Å"The globe study,† 2007). It breaks down the 62 societies into 9 Cultural Dimensions: performance orientation, uncertainty avoidance, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, and power distance; 6 Culturally-endorsed Leadership Theory Dimensions: charismatic/value based, team oriented, self-protective, participative, humane oriented, and autonomous; 21 Primary Leadership Dimensions: administratively competent, autocratic, autonomous, charismatic/visionary, charismatic/inspirational, charismatic/self-sacrificial, conflict inducer, decisive, diplomatic, face saver, humane orientation, integrity, malevolent, modesty, non-participative, performance oriented, procedural, self-centered, status consciousness, team collaborative, and team integrator (â€Å"The globe study,† 2007). In terms of this case, Rocky River Industries is concerned with the performance orientation, which includes, wanting better economic performance and becoming more tasks oriented. Shanghai Fabrics Ltd. is more concerned with the humane orientation aspect. This includes concerns about creating jobs, loss of jobs, and relations. It’s apparent that both companies want the joint venture to be a success; however, they seem to be at odds over what is the most important element of the partnership. I believe that the business is headed in a positive direction but I would suggest that the two companies reevaluate their strategies and come to a compromise so that they’ll be on the same page as far as what is expected of the other. By doing this, each would have better understanding as to the vision that each has for the overall direction of the company. Explain which of these differences is most central to the issue at hand and why. The difference that is most central to the issue at hand is the annual 5 percent return on investment (ROI). This is an issue because it is the basis as to why Rocky River Industries is considering dissolving the partnership with Shanghai Fabric. According to Gruttadaro (2011), return on investment can be used to measure the value of an entire company or of a specific investment that a company might make. He believes that it also provides a framework to determine how an investment might be made more profitable such as by lowering the cost of an investment or speeding the rate or magnitude at which the gains are realized. Rocky River’s concern about the ROI are valid, however; it’s very important that they acknowledge that the merger has remained consistent with positive gains instead of negative. In my opinion, both companies came to the conclusion that a joint venture could help their businesses grow faster, increase productivity and generate greater profits. It’s also apparent to me that both companies should be reminded that partnering with another business can be complex and it takes time and effort to build the right relationship. For example, problems are ikely to arise if: the objectives of the venture are not totally clear and communicated to everyone involved; the partners have different objectives for the joint venture; there is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners; different cultures and management styles result in poor integration and co-operation; and the partners dont provide sufficient leadership and support in the early stages (â€Å"Joint ventures and partnering,† 2011). Develop a strategy for addressing the situation and explain how it would help appease Ray’s boss back in the U. S. Success in a joint venture depends on thorough research and analysis of aims and objectives. This should be followed up with effective communication of the business plan to everyone involved (â€Å"Joint ventures and partnering,† 2011). The development of a new individualized marketing strategy or global marketing strategy could possibly improve the profit margin of Shiu Fabrics as well as, provide Paul Danvers with a reassurance that efforts are being made to further advance the company. With an individualized marketing strategy, it typically involves a comprehensive market research component and a significant effort to tailor a product or service to each individual target market. Under this approach, political, social, and economic factors are important components of the marketing process (International marketing, 2011). A global marketing strategy is a controversial approach because it ignores the differences between the nations. Instead, its proponents claim that while a business that sells its products in the same way in every market may suffer losses in isolated instances, it will reap compensatory savings elsewhere. This strategy is based on the notion that consumers around the world are growing more and more similar and that a standardized product and marketing mix can achieve enormous economies, especially in advertising, packing, and distribution because they would not be changed. Proponents of this strategy believe that modern technology has created a commonalty among people around the world (International marketing, 2011). Explain what your new strategy has over the status quo. The aforementioned strategies aren’t new. I chose these strategies because I believe that marketing is essential to the success in any type of business. A marketing strategy lays out a marketing plan for a company and includes defined goals, analysis of previous strategies and plans for how to implement marketing techniques to achieve the marketing goals for a company (Newton, 2011). Having an organized plan is very important to a company’s marketing department because it defines the target customer so that the marketing team is clear on who they are targeting with campaigns. In addition, it helps the marketing team focus on specific tasks. Marketing strategies also help increase brand or product awareness for the company’s customers or for the general public. The marketing strategy helps to determine the best way to go about getting the message across to the right audience. This information is based on industry analysis and consumer or customer behavior. Taking the time to research this information helps the company narrow down their marketing campaign options to the techniques that will work best. This reduces the possibility of failed campaigns and saves time by allowing them to focus only on the best ways to increase awareness of the company, brand, or products (Newton, 2011). Rocky River Industries has a major concern about return on investment (ROI). With that issue being a top concern, the development of a marketing strategy that saves the company money is very critical. Marketing campaigns cost money, sometimes a lot of money. However, having clear goals and marketing techniques defined in the marketing strategy helps save money. When marketing plans are laid out, it is easier to determine a budget for the marketing department. Furthermore, a company does not waste money by trying a number of different techniques; the information in the marketing strategy helps eliminate some campaign ideas that otherwise would be a waste of money (Newton, 2011).