CASE ANALYSIS REPORT ON SHUI FABRICS
PORFERIO A. SALIDAGA, JR.
Dr. George Fong
April 20, 2012Problem
The minimal Return of Investment (ROI) of 5%.
To increase the ROI from 5% to 20%.
Analysis of Relative Facts
The joint venture between Ohio-based Rocky River Industries and ShanghaiFabric Ltd is a manifestation of companies and managers going into a globalmarket, engaging in a business across borders.In the case of Rocky River Industries, it engages itself in internationalbusiness in order to broaden its market potential by selling coat fabric to bothChinese and international sportswear manufacturers.However, an organization which operates internationally must also be readyto be exposed in different economic, legal-political, and socio-cultural milieu tosucceed.In this case, there is a difference in perspective between the two businessesin joint venture due to different economic, legal-political, and socio-culturalbackgrounds. While the Rocky River Industries is not satisfied with the annual5% ROI and looks at considerable red tape and high labor cost in China ascontributors; Its Chinese counterpart, on the other hand, has a different pointof view--- he considers the return as just the right level of profit.