Gentran Machinery, Inc. (A)

C. Carl Pegels ()
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C. Carl Pegels: School of Management, SUNY at Buffalo, Buffalo, NY 14260-4000, USA

Asian Case Research Journal (ACRJ), 2003, vol. 07, issue 02, 145-166

Abstract: The two cases describe the problems associated with the implementation of an international manufacturing joint venture in China between an American construction machinery firm and its Chinese counterpart. Case (A) presents the major hurdles the partners had to deal with: cultural, language and management problems. The conflicts between the two sides were exasperated by the lack of Western exposure to Chinese managers and the strict hierarchical management system in the Chinese side of the joint venture. Case (A) does not propose solutions but certainly raises many issues that need resolution.Case (B) proposes solutions to the problems extensively described in the "A" case. General recommendations were proposed to address the following issues: (a) the general manager's position, power and authority in the joint venture, (b) the organizational design of the joint venture, (c) clarification of the responsibility of both parties, (d) reward system and appraisal system, (e) how to deal with both the Chinese and American incompetent managers, (f) how to deal with the communication problems, both language and cultural, and (g) final comprehensive and position outline of the potential of the joint venture.

Date: 2003
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DOI: 10.1142/S0218927503000410

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