Management
If you were Ray Betzell, what other options to the 50-50 joint venture would you consider for manufacturing textiles in China? Make the argument that one of these options is more likely to meet Rocky River’s expectations than the partnerships already in place. Ray Betzell is the general manager of a joint venture Rocky River Industries and Shangai Fabric Ltd. Rocky River launched Shui Fabrics a 50-50 joint venture between U.S textile manufactures and the Chinese Company to produce dye and coat fabric for sale to both Chinese and international sportswear manufactures. After a lot of obstacles, red tape and money losing years, the deputy general manager Chiu Wai was very delighted as the joint venture was fulfilling his expections.This joint venture has provided 3000 people with jobs and a local boost to the economy. This brought about 5% annual returns on their investment. However the President of Rocky River, Mr Paul Danvers is not too happy with the performance and output of Shui Fabrics. Thus Mr. Ray Betzell had the task to oversee this problem and suggest options .If I were Ray Betzell the first and and foremost thing I would do is to introduce modern technology like machines to reduce the workforce. This in return will cut down labor costs and increase productivity. Thus there will be greater efficiency in the workforce. This in return will increase the Return an Investment (ROI).In this way the employees could be better rewarded and this in return will make them happy and work harder with greater efficiency. Another option, I will consider is to tab the potential huge Chinese market. With sophisticated technology, the product will be more marketable and with greater demand, the profit will increase and thus ROI.This will help us with the uncertainty surroundings the market. Next, will be to have better bilateral trading negotiations between US and China. A bigger option will be to diversity their products.Shui