Introduction
In the reading "A first time expatriates experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played to strengthen and maintain the international partnership.
Controls Inc. was a subsidiary of the parent company Filtration Inc. and so was shielded from any outside competition. When Controls Inc. was given the charter to pursue its own business they realized the need for being cost effective as a result of which they started an operation in Singapore with the name Controls Asia-Pacific with the prime objective to have a presence in the region and to study and evaluate any possibility of a joint venture.
James has been an employee of Controls Inc. for the past 23 years with an experience in managerial positions of about 15 years. He had a keen interest in working in the Pacific Rim for which he was eventually rewarded a position of Chairman on Board (COB) at the Factory in China.
What we noticed is that due to Control's relative inexperience and lack of understanding of joint venture, James was recalled only after completing one third of his contract length, to be replaced by a relatively inexperienced employee from Singapore (Jimmy Chao). Controls Asia Pacific, in doing so, ignored the fact that they might threaten the success of the joint venture.
This case shall try and analyze what factors may have caused this pull out to occur, what may be its consequences, and what we feel should be done, in order to reinstate trust and confidence to make the joint venture a success.
Adaptation, Acceptance and Experiences.
James had been a keen admirer of international culture and has be...
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...kers. Moreover the Chinese being ethnocentric people may not like a Singaporean of Chinese origin to come into their town and factory, and run it in their own respective ways. Also the MD and Jimmy may not see eye to eye as they both may be rallying for power. We feel that the joint venture is still too premature to have a change in leadership and management. Controls Asia-Pacific at this stage should avoid experimenting with the management especially when the current operations at the factory are beginning to show signs of progress and improvement.
As a long term strategy, we recommend James to be made Head of Operations of Controls Asia Pacific in Singapore because he is the best suited person who not only understands the culture and vision of the parent company in the US, but also can transcend that ideology to the Controls Asia-Pacific HQ and the joint venture.
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Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.