Shui Fabrics

In: Business and Management

Submitted By xuanvy
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1. PESTEL analysis: * Political/ Legal: This factors influence Shui’s business at moderate level as Chinese government is encouraging foreign investment however not prefer foreign ownership. This means US based company could not further expand and affect deeply its joint-venture in US. However, 50-50 joint- venture with Chinese offer relatively advantages since government would support this business model. Moreover, the Chinese government controls completely the business in their country, so that it is too tough to make a relative with Eastern companies. * Economic: economy development in US and China are developing in the same direction, however, US economy mainly depend on the service sector while China is favor for developing heavy industry sector. This might present the different in US and Chinese manager perspective since service sector normally fast growing while industry sector require long-term development. This might explain the problem that US based manager believe on the fast growth of business (20%) while Chinese manager believe that 5% growth is considered as successful. * Cultural: This may consider as a significant problem that US is a Western country and China is an Eastern country. The Eastern is normally “uncertainty avoidance” and “future oriented” while Western managers are relatively referring “Performance Orientation” taking risk in their business. In other words, Chinese manager (Chiu Wai) would believe that a 5% growth is a strong, reliable and healthy growth for a business that ensuring low level of risk while US manager think that 20% growth regardless risks factors is more important. According to “ by providing jobs to close to 3,000 people).

2. Shui’s core problem:

-The problem occurs in the difference between Western and Eastern manager perspectives. In other words, their differences in beliefs of how a successful…...

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