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This case of a 50/50 joint venture in China between a US company and a Chinese company could be a classic example of how foreign companies should plan and execute when doing business in China. It clearly showed how adaptation played a key role in the US firm’s success in a foreign market. Mike Graves’ understanding, tolerance and even accommodation of the cultural differences clearly contributed to the success of the joint venture particularly in the last five years where he is general manager.
The US company penetrated the lucrative Chinese market and has benefited from the local expertise and network of the Chinese company. On the other hand, the Chinese company grew, expanded with 3 successful acquisitions and has also benefited from the management tools and innovations brought in by the US company.
More important in the case now is how to plan for the future especially when the parent companies have conflicting visions for the venture.
The conflicting goals......
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Title: Trouble In Paradise
Approximate Word Count: 606
Approximate Pages: 3 (250 words per double-spaced page)
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