Shui Fabrics: A Critical Analysis of a Global Problem Essay

Shui Fabrics: A Critical Analysis of a Global Problem Essay.


In this paper we will discuss the Shui Fabrics Case Study and its implications on managing in a global environment. The research of case studies gives us the opportunity to understand and apply the lessons we have learned in the course. The case explains that for 10 years, Shanghai Fabric Ltd., a Chinese fabrics company, and Rocky River Industries, a United States textile manufacturer, have been part of a 50-50 joint venture to produce dye and fabric. This venture, called Shui Fabrics, produced dye and coat fabric for domestic and international sportswear markets.

Ray Betzell, general manager for five of the 10 years, found himself in the middle of a tough situation (Daft, 2012, p. 119).

The objective of this case study is to identify the main problem, analyze its implications, and integrate the management skills we have learned in the course. I will discuss the differences between the American and Chinese views of the company in regards to the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project value dimensions [ (Daft, 2012, pp.

106-107) ]. We will also learn the importance of researching the socio-cultural values of the country we want to do business with.


Ray Betzell has a dilemma. On one side, the Rocky River president and Ray’s boss, Paul Danvers, was unhappy with the 5% return of investment (ROI) the company was producing and wants Ray to find solutions or they would pull out of the joint venture, while considering staying in China. On the other side, the Chinese deputy general manager was actually very happy with the venture because it was having a positive impact on the local economy by providing jobs, and producing the right amount of profit allowed by the government. The problem is that Ray Betzell needs to find a way to convince his boss that Shui Fabrics has actually been very successful, if you take into consideration that China is a very difficult market to enter, and that it has great possibilities of growth. There are two sides to the problem, the Chinese and the American, and Ray is the only one who can see both of them.

The reasons for these two points of view are the socio-cultural differences that exist among countries. Culture is what defines a country and it can be composed of the language, values, religion, models of conducts, and beliefs, among others. There are many cultural differences between China and the U.S. China has a strong sense of hierarchy and respect towards figures of authority. For example, the vice president of a company might decline to participate in a very lucrative opportunity if it meant going over the president and his boss. This is a behavior that many Americans would find difficult to understand because their priority would be to make money. Another example is the role women play in business world. Even though the number of professional Chinese women has grown, men still think they are inferior, which is why when they see a woman succeeds in a position usually occupied by men; she earns great respect (Fang, 2008).

This is actually something that other countries looking to enter Chinese market can use to their advantage. These and the many other cultural differences that exist between China and the U.S. explain why they see the problem in a very different way. Based on these differences, if Rocky River decides to pull out of the venture, it will be very difficult for the Chinese to trust the company and the American business in general again. It will be very difficult for the Chinese to understand why the American business thought Shui Fabrics was a failure because for them it was the opposite.


The GLOBE project value dimensions identified five dimensions that global managers can use to explain cultural differences between countries. Based on the case details we can we can identify several differences. The first difference deals with the humane orientation dimension, because it relates to caring for the people. The Chinese have a high unemployment rate, which means they are concerned with job creation. The joint venture has been successful in their minds because it has created about 3,000 jobs, which is a big contribution to the local economy. On the other hand, the Americans think they should lay off workers to earn a higher profit. Therefore, the Americans are more concerned about making money than providing the jobs that are helping the people (Daft, 2012, pp. 106-107, 119). The second difference deals with the performance orientation dimension. The Chinese and the Americans have different performance expectations.

Chiu Wai, the Chinese deputy general manager, believes that the 5% ROI that the Americans are earning is appropriate because earning more than that would not be viewed well by the government. The American president of Rocky River thinks the 5% ROI is unacceptable because he was expecting to me making around 20% (Daft, 2012, pp. 106-107, 119). Both companies have very different performance expectations. The third difference relates to the future orientation dimension. The Americans are not really taking into consideration the long term success Shui Fabrics has shown, based on how difficult it was to enter the Chinese market. They are also not considering the future long term favorable results they probably would experience based on the huge Chinese market, and the lower wages they pay to Chinese workers.

Rocky River is more concerned about quick gratification than long term results (Daft, 2012, pp. 106-107, 119). It is Ray Betzell’s responsibility, as a manager who understands both the Chinese and American views, to explain all the possible opportunities that Shui Fabrics can bring to Rocky River. He needs to use the GLOBE dimensions to explain the cultural differences between the Chinese and the U.S. and how pulling out of the venture could do more harm than good. Ray should also try to help the Chinese understand the Americans point of view on profitability. There might be opportunities to renegotiate with Shanghai Fabric if they can understand the American’s socio-cultural views on business. These are actions Ray could follow as a global manager.


Evaluate how your management skills are advancing and how you will apply your knowledge to integrate people working in a global team environment. Again, draw from knowledge gained in this unit. I do not work for a company that has any plans of expansion to other countries. However, when it comes to socio-cultural differences, we need to remember that we live in a country that is rich in diversity. There are people from many countries living in the United States who came with their own culture and values.

As a manager, I can apply the knowledge and skills I have acquired in this course to understand the behavior of my coworkers and direct reports who came from foreign countries. I don’t necessarily need to travel to a foreign country to have and develop cultural intelligence. As managers of a diverse workforce, we also need to “reason and observe unfamiliar gestures and situations and devise an appropriate response” [ (Daft, 2012, p. 109) ].


I found this case study very interesting because sometimes I do not even think about the many socio-cultural differences that exist between countries. It was very difficult for me to understand why Rocky River could not see how they have accomplished something that seemed impossible by entering the Chinese market. Based on my learning, I truly believe that we cannot enter a foreign country without performing the appropriate research on the impact we can have on the people. We cannot make such a decision with the sole objective of making money. It is clear that the Chinese places great importance on their people, thus I believe that if Rocky River pulls out of the venture, they will probably fail at other attempts to enter into similar contracts with other Chinese companies.

They will probably feel disappointed and will reject a company that bases all decisions on money, with no regard on people. Based on what I have learned, if I were the general manager, I would use all my skills to try to convince my boss that we would be making a big mistake if we pull out of a venture that has brought so much good to the Chinese. Of course, I would also use forecasting and experience to show them how in the near future, we could earn more profit. These are the lessons that I take with me upon completing this paper.

Daft, R. L. (2012). Management. Mason: South-Western Cengage Learning. Fang, G. (2008, March 18). U.S./China Differences and Their Impacts on Business Behaviors. Retrieved from Womble Carlyle Sandridge and Rice Web Site:

Shui Fabrics: A Critical Analysis of a Global Problem Essay

Rome vs. Han China Essay

Rome vs. Han China Essay.

The Han Dynasty and Imperial Rome were both large and powerful empires that existed during the Classical Period. The Han Dynasty and Imperial Rome had some major similarities as well as differences. The Han Dynasty had a similar government system as Imperial Rome, the empires’ governments made the same mistakes that led to similar declines; however the government’s involvement and view on trade was different between these two empires. Both the Han Dynasty and Imperial Rome were monarchies. They had emperors that had absolute power.

In addition, both emperors appointed officials to help them rule their land. This system of government is called a bureaucracy. The emperors of Han China claimed to have divine right to rule just like the Roman emperors. Both emperors used this divine right to rule to get their peoples support, after all if the emperor had divine right to rule and you didn’t support the emperor, then you would be going against god. Another similarity between the Han Dynasty and Imperial Rome was that both emperors of each empire were able to carry out huge public works projects.

These emperors were able to do so because the two empires had similar government systems, monarchy, thus the emperors had absolute power and could force their people to build these public works. Just like the Romans the Han built canals and roads, however unlike the Romans, the Han improved upon their great wall and did not develop aqueducts. Both the Han Dynasty and Imperial Rome had this similar government because their politicians wanted to have absolute power and supported the monarchy system.

Imperial Rome’s and The Han dynasty’s governments also made similar mistakes which led to similar declines. Since both government systems were monarchies, the emperors had absolute power. Although some Emperors from both empires made huge improvements to their respective empires, some emperors from both empires made critical mistakes. Also, in both empires, their emperors forced their people to work and pay for the public works. The heavy taxes and focus on public works worsened the economy. Both empires also spent a lot of money on threats at their borders.

The Romans, at the time of their steady decline, had to spend a lot of money on their military to fight off their enemies. The Romans, at this time, were invaded by the Huns as well as many Germanic tribes such as the Visigoths. The Hand Dynasty also had problems with their borders. Unlike the Romans, The Han paid off their invaders. The Han were mostly invaded by nomads. As a result of both empires spending a lot of money, both governments decided to create more money to pay off their depts. As more money was made by the government, the less it became worth.

As a result, there was inflation; prices went up however peoples stored money lost value. Not only did Imperial Rome and Han China face economic troubles, their people were disunities. The gap between the rich and the poor grew in both dynasties. And as a result of poor government, there was “unfair” land distribution which causes hatred between the rich and the poor. This hatred led to disunity. In both empires, government officials and generals fought each other for power instead of their common enemies.

In addition to the disunity between the rich and the poor, both Han China and Imperial Rome, split their empires to make them easier to control. The failing economy and disunity, which were caused by similar failing government systems which gave absolute power to one person, led to the decline of both Han China and Imperial Rome. Han China and Imperial Rome had many similarities, they did, however, have some differences. For example their governments had different views on trade and government involvement in trade. Not only this, Han China and Imperial Rome traded different products.

The Han traded silk and porcelain while the Romans traded their olive products and any abundant agricultural produce. The Han were so influential in their land trade that there were trade routes called “The Silk Roads. ” On the other hand, The Romans were so successful in their sea trade, that the Mediterranean Sea was named “The Roman Lake. ” Also, the Han government decided to focus on trading their products made at home with foreign nations for a profit, while the Romans focused on buying needed goods from other countries and selling those goods to their own people.

For example, Rome required timber and grains. Rome traded with Egypt to get the grain they needed. In addition, the Han government had a different view on government involvement in trade than the Roman government. The Han government had monopolies on some products such as iron. This meant that they sold/ traded their iron with government/political control. Unlike the Han government, the Roman’s had more independent trading. The Romans focused on their “latifundias” or large land estates.

The reason why Han China and Imperial Rome had different views on trade, types of trade, and government involvement in trade was because of their geography and cultural beliefs. For example, Since Han china was ethnocentric and believed that they were the best and the world revolved around them, their government made trade more focused on exporting products. Also, China had better and more abundant resources than Rome; this made the people of China not need to import goods from other nations, also their abundance in Iron led to government involvement in the trade of iron.

This difference in geography also explains why Rome focused on importing goods from other nations more than China did. Han China and Imperial Rome were both successful empires. They had a similar system of government, they were both monarchies. According to history, even the greatest empires fall. This was no exception for the Han dynasty and Imperial Rome. Both empires fell due to the mistakes of their emperors such as too much government spending. Although the empires had many similarities, their types, view, and government involvement in trade was different.

Rome vs. Han China Essay

Levendary Cafe Case study Essay

Levendary Cafe Case study Essay.


Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion business model. The Café has two important elements that differentiate it from its competitors, which were offering nutritious soup, salads, and sandwiches, as well as, providing exceptional service for their guests in a genuine, and friendly manner.

The company’s philosophy is satisfying customers’ needs by trying to make an impact on their life and look for the long run profit as encouraged by founder, Howard Leventhal to his staff. After 32 years of experience operating in the U.S domestic market and after a slowdown in the company’s domestic growth, the company considered expending its operation internationally, more precisely in China, a promising market that had shown a strong annual GDP growth of 14.

5% in previous years, as well as, the arisen number of middle class income.

The responsibility of overseeing the China operation was given to Louis Chen, a Stanford MBA graduate, after a two-year contract agreement between Leventhal and Chen in September 2009. A year and six months into the two-year term contract, Mia Foster was named the new CEO of the Levendary Café in February 2011. The public press viewed the new CEO as being inexperienced in the international market in addition to some doubt about Foster’s ability to build a multi-national brand. Louis Chen opened the first store in Shanghai in, January 2010; the first location was in a high traffic business area. Within a year Louis Chen was able to allocate 22 additional locations for the Levendary Café, due to his strong knowledge of the country’s geography and his ability to speak both English and Mandarin Chinese.

However, after a review of China’s operation by the new CEO, Foster was not happy with the way the operation was managed in China, she noticed that the accounting report was not formatted in accordance with U.S. Generally Accepted Accounting Principles (GAAP). This was the turning point in the relationship between Foster and Chen, who had not met face to face. The new CEO decided to look more closely into the China operation and planned a trip to China to meet with Chen for the first time. Identification of Main Issue

The case presented a number of main issues that Levendary Café faced during the expansion into the Chinese market. From the case the main issue was identified as: the Levendary brand image is not consistent in the United States and China because there is a lack of communication between the parent company and subsidiary. The contributing factors to this were the management styles, the lack of standardization, the cultural differences and the limited experience in the foreign market. These issues have been detailed below.

Management style

The Chinese operation lacks close mentoring and evaluation by former CEO Leventhal, who gave too much freedom to Chen with a very hand off management style. “Do right by the concept” was the expression that Chen had as a guideline for how to strategize for the China operations. As a result, Chen was providing little information to Denver headquarter about how the operation is managed in China, which differs from Foster’s management style who appears to be more demanding than the former CEO. There was no clear strategic plan for the operation in China, when Chen was asked about a plan he mentioned that he had no plan. Standardization

Foster is more process driven and valued standardization, she believed that the China operation should align with Levendary Café standards in the U.S in terms of reports, and look and feel of the Café. However, Chen had a different approach where he was trying to open as many stores as he could in a short period of time, paying little attention to the U.S standardized business model. The issue of standardization clearly was another challenge between Denver headquarters and Chen, as he insists in pushing what he thinks is right and resist what headquarter is asking him to do. Cultural Difference

Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S. Limited experience in the foreign market

There was a lack of international market experience since the China market was the second market, Levendary Café entered aside from a partnership in Dubai. Due to this lack of experience Leventhal trusted Chen with implementing the needed actions to grow a successful franchise in China. Leventhal entrusted Chen with this given his strong knowledge of the market in China. Leventhal did not understand that entering a foreign market would take more than knowledge on the country; it would also take strong communication and management skills.

Analysis and Evaluation
Operational Analysis

The operational analysis will cover the company’s internal strengths and weaknesses as well as their external opportunities and threats. The SWOT analysis will be on Levendary Café U.S. operations. This report will also look at problems with standardization in the China operations. Levendary Café has gained much strength over its 32 years of business (Bartlett & Han, 2013). The company has created brand recognition around the United States with its 3,500 café’s (Bartlett & Han, 2013). There is good brand consistency across all 3,500 café’s due to standardization of the Levendary product. Each café has a similar design and atmosphere and offer the same core products. Levendary Café’s standardization has allowed the company to franchise their product and resulted in expansion across the United States. Currently, two-thirds of the company’s cafés are franchised (Bartlett & Han, 2013). Each region also offers different menu items from one and other, on top of the core menu items.

For example, fewer soups are offered in the southern regions of the United States (Bartlett & Han, 2013). This adds to the company’s strong business culture of “delighting the customer” and creating a personalized experience for each customer (Bartlett & Han, 2013). Levendary Café detailed and strict operating standards, policies and practices has allowed for tight control of store level expenses and close monitoring of operations (Bartlett & Han, 2013). The founder, Howard Leventhal, is an entrepreneur who wasn’t afraid to take risks (Bartlett & Han, 2013). His willingness to take calculated risk led to the company using organic grains in its bread and hormone-free naturally raised meats (Bartlett & Han, 2013). Levendary Café became part of the growing trend of consumers wanting healthier and more natural menu options. 81% of Americans over the age of 50 have become more conscious of what they eat (Agriculture and Agri-Foods Canada, 2010).

Levendary Café target market is white-collar professionals and upper-middle-class women (Bartlett & Han, 2013). Their choice to shift towards healthier menu options is meeting their target markets change in tastes. A fully scaled test kitchen and food science laboratory also allows the company to meet the changing tastes of their consumers (Bartlett & Han, 2013). The food team, which includes highly trained chefs from the Culinary Institute of America, is responsible for the test kitchen and laboratory, as well as conducting quality checks across all 3,500 café’s (Bartlett & Han, 2013). Levendary Café has a good organizational structure. Each knowledgeable and highly experienced member of the management team knows their responsibilities and who responds to them. There is a clear power structure.

Finally, Levendary Café has a strong training program for their retail employees called Operating Tools and Learning (OTL) (Bartlett & Han, 2013). OTL sets operating standards and provides employees with materials to enhance their learning (Bartlett & Han, 2013). All these strengths have resulted in Levendary Café being a successful business in the United States. Levendary Café also has internal weaknesses. The U.S. operations are beginning to slow and investors are losing confidence in Levendary Café (Bartlett & Han, 2013). This is one of the reasons the company chose to expand into China. However, there is no separate international division from the Denver Headquarters and the new CEO, Mia Foster, lacks international management experience. Although Levendary Café personalized touch has led to repeat business, it is also considered a weakness because it slows down the speed of service. Currently, there is a lack of brand recognition in China for Levendary Café.

Finally, financial reports from China are being submitted in their own format and the U.S. operations are then “massaging” them to apply the U.S. Generally Accepted Accounting Principles (GAAP) (Bartlett & Han, 2013). These are all weaknesses for Levendary Café. Every company faces external opportunities and threats. As domestic business for Levendary Café is beginning to slow, the company must look at opportunities to continue to be successful. Firstly, Levendary Café is part of an emerging category in the restaurant industry called the “quick casual”. Another opportunity is to expand internationally. Other than the expansion into China, Levendary Café is experimenting with a licensing deal in Dubai (Bartlett & Han, 2013). Some potential threats for Levendary Café are the rising food costs and shifts in food trends. Food costs are beginning to rise due to a variety of factors such as climate change and a rise in oil prices (Oxfam Canada). A change in food trends is a potential threat for any restaurant.

If a restaurants’ product does not meet consumer’s tastes, then revenues will decrease. Levendary Café will need to look at their external opportunities and threats. Levendary Café China operations has three areas that need to be standardized: look and feel of the restaurant, menu options and accounting practices. Firstly, all 23 restaurants have a different design and atmosphere. The first location to open was similar to Levendary design standards, but the second location in Shanghai was a takeaway counter with no seating (Bartlett & Han, 2013). Denver Headquarters should understand that they cannot put the same restaurant that is in the U.S., in China. There should be extensive market research conducted on design and atmosphere that would be successful in China. Another option is to follow what Café Coffee Days did in India. Café Coffee Days offers three different formats of stores, ranging from a smaller grab and go coffee shop to a larger café with areas to sit down.

Levendary Café could have different formats for restaurants; however each format would have a similar atmosphere to help standardize the brand in China. Secondly, menu options are vastly different across all 23 locations. For example, the Shanghai Koreatown offers dumplings with an average check of $2 (Bartlett & Han, 2013). The Beijing Embassy location offers sandwiches and soups with an average check of $10 (Bartlett & Han, 2013). Some menu items were offered at all locations, such as the chicken sandwich. A solution to standardize the menu is to do something similar to the U.S. operations. All locations would offer the same core menu items, but each region would have some different menu items that vary from one another.

Chefs that have been trained in China and educated on different regional tastes should help create the core menu items and the different regional items. The final area that must be standardized is accounting practices. The current financial reports are being sent to the U.S. and massaged to meet U.S. GAAP (Bartlett & Han, 2013). All enterprises in China are required to use the Chinese Accounting Standards (CAS) such as the Accounting System for Business Enterprises (ASBE) (China Briefing, 2014). ASBE has similar standings to the U.S. GAAP and the International Financial Reporting Standards (China Briefing, 2014). An international financial analyst should be hired in order to deal with both China and the U.S. financial reports and audits. Financial Analysis

A financial analysis of the U.S. and China operations provided information on Levendary Café’s current financial status. The income statement for China can be seen below. In China, their food and paper cost is at 51%, which can be attributed to their high number of food options on the menu and the lack of distribution system set up. Once a core menu is created and more locations begin to open, Levendary Café will be able to take advantage of economy of scale and lower food and paper cost. China also has a high occupancy cost at 24%. This could be a result of having to pay extra to get the better locations. In addition the Chinese real estate market is very high meaning that any location is very expensive.

During the time of the case study the Chinese real estate was going through a “golden decade” (Ranasinghe, 2014) which can demonstrate the higher occupancy cost that the Chinese division occurred compared to the United States. The pre-opening expenses (12%) also contributed to the loss of income in the first year for China. After the first year of business, China had a loss of $143,620. China operations also have a lower marketing expense. Marketing is generally not a large expense in China because the local population listens more to radio advertisement, which are cheaper, and rely on word of mouth. Income Statement- China

The financial statement of the U.S. operations, which can be seen below, shows that Levendary Café generally follows industry standards. Their food and supply cost are slightly lower than industry standards. Generally, food and supply costs are about 29% of total sales, but Levendary Café food and supply cost are at 24% of total sales. Occupancy costs for Levendary Café are about 4% lower than industry standards. Levendary Café spends more on marketing then industry standards, about 2% higher. Income Statement- United States

Cultural Analysis

**The above information was sourced from The Hofstede Centre Website (Hofstede Centre, 2010).**

By completing a cultural analysis on the two countries, United States and China, it was easy to determine how the key issue, being communication, came about. Geert Hofstede identified five different dimensions that demonstrate how “values in the workplace are influenced by culture” (International Business Centre, 2014). The different dimensions that Geert Hofstede identified are: Power Distance, Uncertainty Avoidance, Individualism vs. Collectivism, Masculinity vs. Femininity, and Long Term Orientation vs. Short Term Orientation.

Through using these five dimensions one can evaluate how each culture approaches these dimensions and how it influences them in the workplace. The score beside each dimension determines how much value they place towards each dimension. It is interesting to note that on only one dimension, Masculinity vs. Femininity, the two countries have a comparative score. It is with these differences that communication issues between the two countries can be seen. Power Distance

The Power Distance Dimension looks at the relationship that people hold with others in that country. China scores very highly on this dimension as people value their superiors and do not act outside of their ranking in society. In regards to the case study it is confounding that Chen is unobservant of his superiors power being Mia Foster. In the case Chen is continually rude to Mia and questions her authority. This can be attributed to two different factors. The first of which is that Chen was originally hired by Howard Leventhal therefore Chen believes that Mia is not his superior. Leventhal gave Chen freedom to expand the Levendary business into China with little guidance or instruction.

To have a new CEO enter the business Chen will not feel the need to respect Mia, as he still believes his true superior is Leventhal. In addition Chen, while he is from the Chinese culture, had many experiences and training in the United States. Therefore it can be seen that Chen was of American culture and acted as such. The United States had a low score on the Power Distance so while Chen is with the Chinese branch of Levendary he still has the American cultural values. Uncertainty Avoidance

Uncertainty Avoidance looks at the way that culture embraces uncertainty. With a low ranking in the Chinese culture it is evident that this country looks at laws as flexible. This is seen in Levendary China as the standards between all the restaurants vary and are different from the brand standards
that are seen in the United States Levendary stores. In addition the difference in accounting practices can be seen. The China division was very lenient about their reporting of finance to the US Division.

Individualism vs. Collectivism

This dimension looks at how individuals think and act, if it is for the greater good or if it is for their own well-being. The Chinese culture looks out for the group when making decisions. This is demonstrated in the case when Chen disrespects Mia Foster. He previously considered Leventhal to be his group and when Mia takes Leventhal’s position then he does not recognize her as an insider. This results in his mistrust of Mia and her authority within the Levendary Café company.

Masculinity vs. Femininity

The Chinese culture has high ranking in this and is seen through Chen’s demeanor. He is very competitive and is eager to be successful. This is seen through his urge to keep his position with Levendary China and the fast pace in which he opened the stores in China. In addition his actions of being very abrasive with Mia Foster is because he feels threatened that she is trying to take over his position with Levendary. He had never had his business interfered before by anyone from the Denver Headquarters so he put his back up when Mia started to interfere with how he was running his operation.

Long Term Orientation vs. Short Term Orientation

Long Term and Short Term Orientation looks at how a culture is prepared for the future. The Chinese culture is very focused on planning for a long-term future. This dimension demonstrated the American culture that Chen must have picked up on his time in America. With his time managing the Chinese division of Levendary, Chen was very short sighted and opened up a large amount of stores in a short period time. Instead of formulating a business plan, which would encourage growth for the future of the business, Chen did not have one and was simply opening businesses when he found an available location.

Parent Company vs. Subsidiary

In this case, the parent company would be Levendary Café U.S. operations and the subsidiary would be Levendary Café China operations. In terms of restaurant size, U.S. restaurants range from 2,500-4,000 square feet. China restaurants are smaller in size; they range from 500-1,500 square feet. These results in less staff needed for China restaurants, approximately 13-20 staff members. The U.S. restaurants need about 24-26 staff members. The larger U.S. restaurants are able to accommodate more customers; they usually have 84-120 seats and can serve anywhere from 560-3,210 guests per day. Due to smaller size, China restaurants have a maximum of 80 seats currently and can serve 260-430 guests per day.

In terms of menu options, the only item that is offered in both the U.S. and China is the chicken sandwich. The Suburban U.S./Denver restaurants make more revenue and have a larger square footage then the China restaurants. However, the China restaurants have higher average revenue per square foot. Restaurants in Beijing make $537.33 revenue per square foot and restaurants in Shanghai make $576.00 revenue per square foot. The Suburban U.S./Denver restaurants make $531.50 revenue per square foot. A chart can be seen below which clearly details the difference between the parent and subsidiary company.

Alternatives and Recommendations


Mia Foster is left with a very difficult decision at the end of the Levendary Café case study. As the new CEO of the company she has to make a decision that will result in profitability for the company and chose an action plan that ensures long-term success for the business. As such that are a variety of alternatives that Mia Foster will have to chose from in order to move forward with the company. The following list presents the many alternatives that should be considered: 1. Shut down all operations and solely focus business in the United States. The China division stores look and feel vary from what the Levendary Brand is trying promote in their US Division. In order to continue with the stores in China then restoration will need to be completed to all the stores. Mia Foster will need to determine if the China division profits are worth the renovations and continuation of Levendary China. 2. Fire Louis Chen and hire a new manager for the China Division. Louis Chen has proven himself as a capable entrepreneur and someone who is knowledgeable of the Chinese retail market. However he lacks communication skills, which was noticeable through the expansion of 23 Levendary shops in China that do not fit with the brand image.

Chen is also extremely confrontational and may not be the best fit with the new CEO, Mia Foster, as he already had built a rapport with Howard Leventhal, the previous CEO. If Louis Chen cannot properly function and communicate with the US Levendary division then he may need to be replaced by someone with a fresh perspective on the business. 3. Hire a management firm to manage the China Division of Levendary. It is apparent through the case study that the US Division of Levendary has not been able to communicate in an effective manner with an international branch of their company. The Hofstede Dimensions that were listed above demonstrates the cultural differences that separate the two branches of Levendary. With no cultural training Mia Foster and the US Division are not communicating properly with Louis Chen. An alternative to the situation would be to hire a management firm to look after the China division. A management firm with International experience would be a solution to the communication problem because they would understand how to conduct business while ensuring good communication.

4. Create a separate division of Levendary for the China stores. The Levendary stores in China are off brand from the original concept that is seen through out the United States. This is largely due to the fact there is limited communication because the key players in the United States and Louis Chen in China. In order to fix this problem it would be wise to bring the structure that works so well in the United States and duplicate this order in China. With 23 stores in China, Levendary will need a separate branch in China, as it will provide structure to that side of the business. With more supporting players in China, asides from Louis Chen, then Levendary will be able to maintain the brand and in addition, more supporting managers will ensure that communication is maintained between the US Division and the China Division. 5. Make a joint venture with TATA Group to expand into China. The TATA Group is a “global enterprise headquartered in India, and comprises over 100 operating companies, with operations in more than 100 countries” (TATA, 2015).

TATA has operating companies in China and as such they will be able to reduce the large operating costs that Levendary China is currently experiencing. As noted in the Analysis and Evaluation section, the operating costs are very high. Entering into a joint venture with a company who has established infrastructure will help eliminate these costs and allow Levendary to increase their profits for the first couple of years. In addition the joint venture will allow Levendary to be partnered with people who are culturally aware and possess cultural intelligence. 6. Replace the US Division Chief Operating Officer, Nick White. It was easy to identify that communication was a large issue between the US and China Division Levendary.

It is easy to target Louis Chen as the main culprit of this issue as he was combative and disrespectful to Mia Foster. However the blame can also be placed onto the COO of the US Division, Nick White because he was responsible for keeping communication with China and overseeing the brand image in China. Nick White clearly let this responsibility go and as a result the China Division does not reflect the US vision for Levendary. If someone has to answer for the mistakes that were made in China than perhaps it should not be Louis Chen but instead it could be Nick White.


After evaluating all of the above alternatives for Mia Foster and Levendary Café to pursue it was decided that the best alternative would be number 4, create a separate division of Levendary for the China stores. This alternative includes renewing the contract for Louis Chen and brings more managers to China to help grow Levendary in the China market with the vision and brand image of the US Division. Levendary in the United States can contribute a large portion of their success to their hierarchal structure as it allowed for proper communication and good reporting methods. If Levendary China were to create a China Division then it would allow for better communication between the United States and China and Chen would have the support he needs to ensure the brand image is seen between all stores.

Action Plan

In order to properly implement the alternative that was stated above, an action plan is needed. The action plan is detailed below through three different stages. The Short Term Plan looks at what the business should do in one years time, the Medium Term plan looks at what the business should do in two to three years time and the Long Term plan encompasses a five year outlook. This is detailed below:

Short Term:

1) The first critical step that needs to be taken is to ensure that proper communication starts immediately between Mia Foster and Louis Chen. If the two parties were to sit together and put all of their issues out then they can sort their current problems. Starting with good communication between Foster and Chen will ensure that it continues into their future business dealings.

2) Renew the contract with that Louis Chen has with Levendary China. Louis Chen has proven to be a valuable asset with Levendary Café as he knows the retail market and is passionate about the work that he is doing. While it is arguable that Chen did not complete his work in a successful manner, he was with out support and was given little direction and free reign from the former CEO, Leventhal. With support and proper structure Chen should be able to work within these constraints. Therefore it can be seen that his contract should be renewed for another term with the stipulation that Chen will be working underneath other Levendary managers in China.

3) Denver Headquarters will need to create a business plan for their operations in China. With 23 locations currently in China they will have to decide which locations needs renovations and if all 23 should be maintained. By restructuring the current operations in China, Levendary Café will have a more focused plan that will allow for the China operations to strive. If the Denver Headquarters were to work with Chen and use his knowledge of the China market than they can collaborate and develop a structured business plan.

4) Once a proper business plan has been developed Chen will need immediate support in China. By creating a separate China Division Chen will have the support he needs to standardize operations and reinvigorate the Levendary brand. Managers with cultural training should be placed into the new China Headquarters. Chen will be a regional Vice President however a new top manager will be placed in this division who will be above Chen on the hierarchy and will be the direct contact between itself and Denver.

Medium Term:

1) Standardize operations all throughout the China Division. This includes a standardized brand image through all stores and a consistent menu. As with all locations in the United States there are set menu items in all locations with special items according to the region. Levendary China will need conduct market research that will allow them to understand menu staples that should be available in all locations. In addition regional specialties should be included on the menu. 2) In addition to the standardization of restaurant practices the accounting practices will also need to be redeveloped. As per Chinese law all foreign business enterprises must follow the Chinese Generally Accepted Accounting Principles (China Briefing , 2013). Levendary China must follow “Accounting Standards for Business Enterprises” (China Briefing , 2013) and the Denver Headquarters should hire an international auditor who can then transfer all numbers to follow the US GAAP. 3) Monitor the new business plan for Levendary China and ensure that it is being properly followed and that brand standards are being maintained.

Long Term:

1) Mia Foster should monitor and evaluate China operations on a constant basis. This will ensure that communication is kept to a high standard and that the brand image remains constant. 2) Once operations in China find their place in the market, Levendary China should appoint a Chief Franchise Officer who will develop franchise opportunities in China. This will allow more stores to be built and the brand to have more exposure with less of a expense put on the company. 3) A re-evaluation of their foreign expansion should be completed. The company should decide if they would like to find other potential foreign markets where they could continue the growth of Levendary or if they should focus directly on their domestic growth.

Additional Questions

1. As it relates to the case, explain what this passage implies: An old mentor had once told Foster that there were three types of managers in a new business’s evolution to greater scale: the go-getter, the local baron, and the professional manager. All three types could be entrepreneurial in spirit, but not all were equally well suited for the various stages of a business’s growth. Chen was clearly a go-getter who had evolved to become a local baron. The question in Foster’s mind was whether he could transition to become a professional manager. Before answering the question of whether or not Louis Chen can become a professional manager, it is important to identify the characteristics of one. The discussion in class brought to light that a professional manager is someone that has an understanding of the long term goals of a company, understands the value of standardization among all locations and understands the value and importance of brand image. A professional manager should also be educated and trained; furthermore, this individual needs to assume the role of middleman and understand top management’s goals and relay this information to his employees while collecting their feedback.

Lastly, the class discussion brought to the surface that a professional manager should have extensive core knowledge on how the company should operate. Further research has shown that a professional manager should know how to plan, organize, lead and control all the efforts of his/her employees to complement the company’s values and standards (Sandeep, 2013). Howard Leventhal chose Louis Chen for his role because of Chen’s energy and enthusiasm. On a personal level it reminded Leventhal of himself at a younger age. Howard had told Chen to establish a strong market position as a base to eventually franchise outlets throughout China with the instructions to “do the right thing by the concept” but was given the freedom to operate the restaurants as he saw fit (Han & Bartlett, 2013). To enter the market in China Chen said himself “We just have to be flexible…Chinese eat few dairy products, so we should downplay our cheese soup…most people aren’t familiar with turkey, but they love chicken, so we’ll adapt the menu just as we do in the States” (Han & Bartlett, 2013). Chen believed that Levendary could succeed if it adapted its food and concept. According to Merriam-Webster Dictionary a go-getter is a person who works very hard and who wants very much to succeed (Encyclopoedia Britannica Company).

Chen demonstrated the characteristics of a go getter as he opened up the first Levendary Café only three months after returning from Denver. This location was a corner ground floor location in a new high-rise office building and the concept of the restaurant was prominent and luxurious. This restaurant was positioned as casual dining with table service and higher prices than local fast food concepts (Han & Bartlett, 2013). This location proved to be a hit among the white-collar employees working in the building. Because of competition Chen was forced to move quickly to purchase locations for the remaining restaurants and in the first year managed to secure prime locations for good prices and grow the chain to 23 restaurants. Then Chen demonstrated he was a local baron with his in depth knowledge of the Chinese market and was familiar with the neighborhoods in Shanghai and Beijing; his real estate knowledge was a major asset for the Levendary brand. He said it himself that he was in the trenches running 23 restaurants that he had built by reading market needs and sending opportunities (Han & Bartlett, 2013).

Based on the information collected from the case it does not appear that Chen could develop into a professional manager. Because Chen wasn’t given any direction, he took it upon himself to change the concept, the look and feel and the menu items of Levendary Café. However, the way he handled Mia Foster and her colleagues from Denver and based on the definition of a professional manager Chen can’t develop into a professional manager and Levendary should look for someone to lead the China team while he continues to focus on the 23 restaurants that he has already built.

Chen also became very defensive when Mia tried to communicate with him and based on the definition of a professional, he should be open to listen to their suggestions and input and adapt them to Levendary in China. If Chen had the instincts of a professional manager he would have taken it upon himself to contact his colleagues in Denver to update them on the progress he was making in China and should have taken the standards and values of Levendary Café and applied them in China because that was his responsibility. To become a professional manager Chen would have to see the value of standardizing all the restaurants; however he did provide a great platform for the future growth of Levendary in China and should be kept on the team with certain responsibilities and be made aware of the expectations from Mia Foster.

Works Cited
Agriculture and Agri-Foods Canada. (2010). Health and Wellness Trends : U.S. Market. Ottawa: Government of Canada. Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School. China Briefing . (2013, February 5). China GAAP vs. U.S. GAAP and IFRS. Retrieved February 10, 2015, from China Briefing: China Briefing. (2014). Retrieved February 10, 2015, from China GAAP vs. U.S. GAAp and IFRS:

Levendary Cafe Case study Essay

Chinese Communism DBQ Essay

Chinese Communism DBQ Essay.

Communism in China from 1925 to 1950 was a very interesting period in China, especially in terms of relationship between the Chinese Communist Party and Chinese peasants. Communism in China survived through the Japanese invasion and control of China during the Second World War. Based on evidence provided in the documents, the Chinese Communists and peasants both disliked and fought against landlords, the communists supported peasants in their fight against the Japanese, and made the lives of peasants over all better. One obvious relationship and similarity between peasants and communists is their hatred toward landlords.

Direct evidence including instructions to local party officials (Doc 5) and a photo from Xinhua news agency (Doc 9) show the communists obvious bias to the peasants. The communists even created laws to overthrow the landlords, like the Agrarian Reform Law (Doc 8). The peasant’s hatred was so strong, in fact, that they violently threatened the landlords to get back all grievances (Doc 6). The communists were also confident and excited with the peasant movement that would overthrow landlords (Doc 1).

The communists organized struggle meetings shown in a photo where peasants humiliated former landlords (Doc 9).

Chinese Communism DBQ Essay

Compare And Contrast Japan And China Essay

Compare And Contrast Japan And China Essay.

China and Japan, both with thousand years of ancient culture and civilization history, share numerous similarities and differences. Confucianism is a collectivist based value system which embraces a set of moral codes of behavior designed to regulate the relationships between ruler and subject, father and son, friend and neighbor, husband and wife, and brother and brother. Even though both China and Japan employed Confucianism as the state ideology, there were many features of Confucianism in the two countries that shaped each country’s societies.

China and Japan isolated themselves from the rest of the world in the beginning, but later on, the differences in response to the pressure from the West led them to different paths. This essay is going to compare and contrast two main differences between Japan and China, which include a cultural legacy known as Confucianism and the response to the West in 19th century. To begin with, Confucianism stresses particular social relationships, but it is also a universal moral code, which makes it easy for the Japanese adoption.

However, the Japanese transform it in their way and to a certain degree Confucian concepts are applied to relationships carrying a different meaning from those in China. At its most basic of culture, Chinese morality is founded on the family structure, with the most important social ties being that of parent and child and its blood-related family clans. The Japanese moral system is founded on a set of kinship relations that go beyond blood ties or extend to members who have no blood relationship, with the primary tie being that between leader and follower. Therefore, Japanese political culture is more group-oriented, more tribal, or more radical. Another example is the paired concepts of loyalty and filial piety that characterize the two cultures. These two values are related: both are the duties we owe to our superiors. Loyalty is our duty to our ruler, and filial piety is our duty to our parents.

Both came into the Japanese culture as part of the Confucian influence, but they are treated differently in China and Japan. In China, “filial piety or reverence for parents is the most important of these relationships and the one that binds the Confucian moral system together. Confucianists assume that if everyone internalizes such ‘family values,’ society will come into tune with heaven, and harmony, contentment, and prosperity will ensue as a matter of course” (Miller, John H). When there is a conflict between the two, our duty to our parents usually outweighs that to the ruler. In Japan, the Japanese do not acknowledge this tension or contradiction: one is a filial child only if one gives loyal service to one’s superior. Therefore, loyalty is expressed in unquestioning slave-like obedience and implies total selfless devotion to one’s lord. In other words, loyalty in the Japanese culture usually take precedence over filial piety.

In addition, harmony, rather than competition, is one of the core Confucian ideas and the concept that helps to shape both Chinese and Japanese political cultures. Both China and Japan are highly “collectivistic” societies under the Confucian influence, in which each person is born and melt into a collective entity either family, clan, group, society, or state, each person knows his or her status and identity in relation to others in social relations, and each person is required to conform to the collective values. However, in Japan, more emphasis is placed on group orientation and loyalty to the group, for it is the group that gives one a social identity, provides a feeling of security, and receives the rewards of service. Not only the household and the village but also colleagues, fellow students, neighbors, and even industrial sectors constitute the important groups from which one acquires social status and identity.

The Second Imperialism of the 19th century, driven by both America and Western Europe profoundly affected Africa and Asia. In Asia, both Japan and China were impacted, but in very different ways. Japan was able to ward off the threats of imperialism, and emerge as a world power. China, on the other hand, suffered the loss of sovereignty and status. The elites of both countries responded to the challenges posed by Western penetration by initiating reforms. In Japan, the Meiji regime chose to remake themselves entirely through Westernization, while in China, the Qing government chose instead to hold on to traditional Chinese values and institutions. China’s efforts at reform, the Self-Strengthening Movements, was in essential traditional answers to traditional problems. There was no significant, large-scale industrialization in China, and they displayed little willingness to abandon traditional imperial institutions that were incapable to dealing with contemporary problems.

Chinese cultural pride was just too deeply ingrained, so much so that it became an impediment, blinding many Chinese and preventing them from recognizing the need to learn from the barbarians and for fundamental change. On the other hand, Japanese efforts to adopt foreign technology to meet their military and industrial needs were largely successful. The Meiji regime, however, saw that military technology and industrialization could not be separated from institutional structures that had produced and accompanied such developments in the West, and showed little hesitation in transforming or abolishing traditional institutions in favor of those that could give Japan the modernity it needed to survive. Overall, the Meiji Restoration was a tremendous success for the Japanese and allowed them to join the ranks of Western new imperial powers. Both nations pursued the goal of a “rich nation and strong army” as the way to modernization through the Self-Strengthening Movement in China and the Meiji Restoration in Japan.

However, most of the reforms in the Self-Strengthening Movement belonged to the surface layer of modernization which included manufacturing technology of military and light and heavier industries, and certain infrastructures. The reforms in the Meiji Restoration not only replicated the material manufacturing technology, but also touched the inner and deeper parts of Western civilization that included political structures and legal systems, and Western types of philosophy, culture and ways of thinking. China and Japan, due to geographical proximity, historical, and cultural ties, have many similarities and differences. Confucianism played a very important part in both Chinese and Japanese, but their different understandings in many same concepts lead to different cultures and societies.

In addition, during the nineteenth century, facing the pressure of the West, different responses changes the fate of China and Japan. Chinese responded to the Opium Wars and western intrusion through a combination of challenging the West, embracing traditional ways, challenging the Qing Dynasty, or seeking moderate reforms. Japan, though never conquered, responded to the intrusion of West quite differently. Rather than looking to the past, the Japanese sought to emulate the West. During the Meiji Restoration, Japan modernized. Japan sought to avoid China’s fate by adopting aspects of Western culture and faced a turning point in its history.

Works Cited

Miller, John H. “Belief Systems and Religions.” Modern East Asia: An Introductory History. Armonk, N.Y.: M.E. Sharpe, 2008. 19. Print.

Compare And Contrast Japan And China Essay

The gap between rich and poor in China Essay

The gap between rich and poor in China Essay.


This report is going to talk about China is facing a big challenge to fight the increasing gap between the rich and poor. It caused growing social and economic inequality. The rich get richer and everyone else gets poorer. Firstly, the differently reasons for this problem will be put forward. Then, the report will be explained the influence on the development of economic co-ordination and society evolution because of the rich-poor gap. Meanwhile, the solution of the increasing gap between the rich and poor will be discussed.

1. Introduction:

The gap between the rich and poor indicate the imbalance of personal wealth in the society. The major expression is the gap of income, wealth and standard of living. China is facing the serious gap between rich and poor. “Between 2008 and 2009 the number of Chinese millionaires with assets worth more than 10 million renminbi rose from 825,000 to 875,000, according to rough estimates by the Chinese government. The super rich at the top of the wealth pyramid are rapidly increasing, while the average peasant at the bottom earns less than US,000 per year.

” (Sherry Lee,2010). This problem has caused many influences.

2. Why China is facing the increasing gap between the rich and poor
2.1 The unreasonable economic policy

In the process of social development, our country brought the unreasonable economic policy into effect. The third plenary session of the fourteen encouraged that some areas and some people become rich first. This policy resulted in the increasing of Gini coefficient increasing constantly. “The last time Chinese officials published a Gini coefficient was in 2000, when they announced that China’s 2000 figure was 0.412. A 2011 NBS report said 2011’s “Gini coefficient is a little bit higher than that in 2010,” but did not elucidate either year’s figures.” (Fang Xuyan and Lea Yu 2012 ).

2.2 The unevenly distributed of natural resources

The other reason of the gap between rich and poor is the unevenly distributed of natural resources. China indeed abounds in natural resources of various kinds. But, the geographical distribution of its natural resources is not even. Take coal for example: of more than 760 billion tons of total coal deposits, more than 70% are concentrated in Shanxi and Inner Mongolia, whereas only 1.4% is found in nine provinces in southern China. Of proven recoverable oil deposits, most are found in northeast China, northwest China and coastal areas of north China. 70% of natural gas deposits is concentrated in Sichuan and Shanxi. The geographical distribution of water is also extremely uneven: in southern China, water resources make up 82.3% of the national total; whereas, in northern China, water resources make up only 17.7% of the national total. (PEOPLE 2007) Besides, the defect of social security system and educational also led to the gap between rich and poor.

3. The influence of the gap between rich and poor in China

3.1Hinder the development of economic co-ordination

The poverty gap is too large to hinder the development of economic co-ordination. It is low overall level income in China and had an impact on domestic demand. The majority of wealth into the pockets of the rich; however, a small number of wealth into the pockets of the poor. The most resident income has increasing slowly. In addition, the standards of consumption with rich are not greatly increase. Because unable to meet the needs of the rich the consumer market in China, they generally choose to consumption go abroad. Besides, the remainder money of their consumption transformed into deposit. Nevertheless, low-income persons did not have money so that they not have purchasing power. The whole society of average consumption is decrease. Economic depression will resulted in the increasing of unemployment rate and aggravated the gap between rich and poor.

3.2Hinder the social stable

Furthermore, the poverty gap will bring the instability of society even lead to the split of the country. (China Academic Journal) The poor often face the threat of hunger, it impact their psychology and urge them make extreme behavior, such as theft, robbery, murder and other criminal acts. Low-income people will have a strong sense of inferiority and loss. Conflict with society make them mentality out of balance. The main representation is enmity and hate of the rich. There will be a large number of criminal acts occurred. The income gap cause people do not trust the government and bring the disadvantageous of management.

4. The solution of the increasing gap between the rich and poor
4.1Developing the education

Good social order and social management are necessary condition for the development and progress of society. To reduce the gap between rich and poor, the key factor is to develop the education and improving the quality of labor. (PEOPLE POLITICS 2012) Countries should improve the treatment of teachers and increase investment in basic education. Protection of all children will be able to finish compulsory education. So long as they accept the systemic knowledge of education, they have competitiveness in market. At the same time, develop the economic and expand the employment. Not only to solve the increase of new labor employment problems, but also can make proper arrangement for re-employment of the unemployed workers.

4.2Reducing the gap between urban and rural

The second solution is improve social security system and reduce the income gap between urban and rural .

In February 2004, the State Council announced a set of policies to improve the living conditions of farmers. Firstly, support the development of agricultural production in grain producing areas to increase incomes of the farmers. This includes providing incentives to farmers, improving method of production as well as the quality of land, and increasing government investment in agriculture. This measure will greatly increase the income of farmers. And change the structure of agricultural production by improving output mix, management and technology.

Then, assist the farmers in moving to urban areas to find work by reducing various levies collected from them by city governments and by giving responsibility to the latter for the training of the incoming farmers and for the education of their children. Establish market mechanism for the distribution and marketing of grain by allowing more distribution channels including collectives and by the promotion of farm products. Carry out reform in rural areas including the tax system. ( Gregory C Chow 8/9/06)

5. Conclusion
The gap between rich and poor is increasingly serious in China. Government needs to solve this problem urgently. The main way is improve the education level of national and develop the economic. The second way is improve social security system and reduce the income gap between urban and rural.

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The gap between rich and poor in China Essay

Google Case “Don’t be evil” Essay

Google Case “Don’t be evil” Essay.

Google in 2000 developed a Chinese language version that the Chinese could use freely. Two years later, the government blocked the search engine because this latter did not change the findings. In 2004 the government decided to release the site but users could no longer access sites such as political movements. Google has complied with its own accord to remove all sites that should be censored according to the laws imposed by the Communist Party of China. Many words have been banned also in research, such as Hypocrite, Human Rights, Democracy…

Google mission tells that “Google mission is to organize the world’s information and make it universally accessible and useful”.

But also “being a Googler means holding yourself to the highest possible standard of ethical business conduct.” The information is readily available for everyone who has access to Internet, without find useless information and the product must be universally accessible.

While many companies have ethical codes to govern their conduct, Google claims to have made “Don’t Be Evil” a central pillar of their identity, and part of their self-proclaimed core values.

In 2006, when Google declared their self-censorship move into China, their “Don’t be evil” motto was questioned. Google’s CEO Eric Schmidt explained that sometimes it might need to allow smaller evils for a greater good. However, Google has since challenged China’s censorship policies on various occasions.


Google was criticized a lot by international newspapers about ethics codes. _The Financial Times_ asked to the company if they don’t feel guilty about the situation and if they aren’t becoming evil with censoring researches within China. The same year, Google opened offices in China because from a financial perspective, this country represents for the company a dynamic, fast-growing and increasingly competitive market.

The decisions of the Chinese Government may be compared to the newspapers in the United States because both decide if they would edit or hide any article wrote and thought inappropriate for the public. In fact, the Government takes decisions if Google has to censor web sites and researches; Google consequently stood on accommodating the demands of the Chinese Government.

I think there is not a question of being evil or not. Google is maybe a leader in the world (it ranked in 2005 the third position behind Johnson & Johnson and Coca-Cola), but it cannot take decisions in a country which is not its. The research motor has no power in that country controlled by a Communist Government which is very strong. It is more a problem of coherence from Google, because after reading its mission statement and understanding “Don’t be Evil useless”, we don’t understand the reason why they change their culture when they operate in another country. According to that mission statement and because some governments make the mission difficult to achieve, Google added to the balance a third fundamental commitment after having penetrated Chinese market: “be responsive to local conditions.” People thought that Google will follow its mission perfectly, doesn’t matter the situation or the location, and they were very surprised when they discover that Google made some censure by its own.

After the censure decision of Chinese Government in 2002, Google was not any more efficient, and every search had to pass though the “Great Firewall of China” software. That means Google News was never available, as also Google Images which worked just 50% of the time. A good point of Google is the importance of users’ privacy and it is related to users’ interests. But entering in China, Google’s decisions had to be monitored by the government; this changing of filtering all researches compromised Google’s missions.

It doesn’t matter to the company to be criticized, or if it lose people trust around the world, because the only thing they believed is to try to give to users the access to from within China. But Google had to face some more problems, others than the criticism. I mean, the censoring would really have affected the company search results, because if a user tries to search an ensured term, he would be re-directed to a non-censored site or the browser would stop. But Google risks a brand value damage.

To summarize, I understood that Google had no choice to become censured. It told it was its own decision because it didn’t want to argue with the Government, and it knew that it had no chance to win the fight. It is too important for the company to expand until China, that’s why the company accepted all the country restrictions and try to have a place in that market.


* « Would be willing to reveal information pertaining to its users » — this means that Google does not want to give any information which can harm in any way the users of Google or violate their privacy. Furthermore, Google thought that this request was to get too deep into people lives and this was unacceptable because they needed to protect their users. This is one of a reason why Google does not want to supply information.

* In addition, Google does not want to lose its advantage over its competitors by revealing information which could harm them directly: « threaten Google’s competitive advantage by exposing its proprietary secrets ».

* Last but not least, I think Google didn’t want to supply information requested by the US government in relation to the Child Online Protection Act because they know it would be a huge loss of money for them, the industry of pornography is huge, and therefore if some kids are watching it, Google cannot be too involved in it compared to the money they are making with the industry of pornography.’t+be+evil

Google Case “Don’t be evil” Essay

The classical Athens and Han china differences Essay

The classical Athens and Han china differences Essay.

Han china and classical Athens shared many differences around the 5th century such as cultural image, cultural environment, social structures, and the overall similarities and differences.

Document B (population estimates from mixed sources…) states that the population of classical Athens in 422 B.C.E was to be 315,000 total. Whereas Doc C (population estimates from mixed sources) the population of Han china in 200 C.E was 65,000,000 total. Han china and classical Athens population was distributed differently. Like classical Athens population distribution was more general so it was divided in four sections which were free male citizen, free male non- citizens, free females and slaves.

However Han china population distribution was more specific so it was divided into six sections which were emperor and appointed officials, educated mandarin bureaucrats, landed aristocracy, peasant farmers and some skilled urban works, merchants, and “mean people”. Although Han china and classical Athens have many differences they also had some similarities like both had an underclass mean people in china and slaves in Athens.

Another similarity was that they had was that a largely farm based population.

Document K (discus thrower) and document L (Ch’iu Ying, Landscape in the style of Li T’ang…) were also very different from each other. Document K (5th century) was more cultural base, discus throwers were among many competitors in the Greek Olympic Games. The Olympic Games were held every four years. The events were running, horseback, boxing, jumping, wrestling, javelin throwing, and chariot racing. The only ones that the competition was done usually in nude were the charioteers. If an athlete won he was eternally famous and brought honor to his city-state. Document L (551-479 B.C.E) was more cultural environment because it showed scenes of nature, Han palaces and houses.

This document represented the Chinese landscape, the human labor and slaves. It was shown that a man was overwhelmed by the extent and power of nature. Both of these documents were very different because document K seemed that the Olympic Games and the athletes were very important to the Athens. Whereas document L it was more about the environment and how nature was very important. Also how people lived and did things everyday while living in that beautiful place of nature. There weren’t any similarities between these two documents.

The classical Athens and Han china were different in that their role as an individual in society was different, how they viewed their social classes and how they ruled their government. Athens believed in the democratic government which was the rule of mob where as Han china believed in the bureaucratic form of government and also monarchy. Classical Athens was a city state and Han china was an empire. The geographic of ancient Greece and the Han Empire were very different. They also have some similarities in that both treated women with little respect. Another similarity is that woman didn’t have as great rights as man and also women did not take part in politics only man. Man had more rights because they were the masters and they were the ones making the money where as women just stayed home and raised a family.

The classical Athens and Han china differences Essay

Case Study: Google in China Essay

Case Study: Google in China Essay.

When Larry Page and Sergy Brin first launched the Internet search engine, Google; they did so with one goal in mind, to provide people searching the internet for information with the fastest, most reliable search engine. Because of their creativity and innovation, Google is one of the largest and most profitable Internet search engines available. With more than 150 domains worldwide, people in almost every country can search the Internet for information about everything from historical facts to current events. Ingrained into the company’s code of ethics is the often quoted phrase “don’t be evil” (Hill, 2009, p.

148). By this, Google means the company will not compromise their Code of Conduct and will provide searchers with information which is current and not biased or censored in any way. To Google, their Code of Conduct is also about “doing the right thing” (Google, 2009, para. 1). Because of Google’s Code of Conduct when the company entered China, human rights activists had hopes that the citizens of China could search the Internet without the Chinese government censoring the results.

The purpose of this paper is to address the following regarding Google’s presence in China, (a) the legal, cultural, and ethical challenges confronting Google, and (b) the various roles the Chinese government plays in Google’s Chinese business operations. In addition, the paper will include a summary of the strategic and operational challenges facing Google managers who are living and working in China..


In 2000, Google began offering services to the Chinese allowing them the ability to search in their own language. Google did not have an office in China so the service was out of the United States. For approximately two years, the Chinese people could use Google to search for information over the Internet. Then in 2002, the Chinese government blocked access to Google’s website and instead began making searchers use a site approved by the Chinese government. When the government later allowed access to Google, people found certain sites considered politically sensitive were not available.

China was blocking sites the government considered subversive. To solve this problem, Google decided to establish an office in China with the goal of providing the Chinese population access to the largest amount of information the company could provide. In essence, Google voluntarily agreed to censor certain results considered subversive by the Chinese government. This created legal and ethical problems of Google being able to live up to the company standards of providing users complete access to all information.

Various Roles the Chinese Government Plays

In 2010, Google discovered their website had been hacked into. Although the company will not say publically whether or not they think the Chinese government was behind the hacking, they did inform the government they would no longer voluntarily censor their search results. According to Branigan “Google claimed the cyber-attack originated from China and that its intellectual property was stolen, but that evidence suggested a primary goal was accessing the Gmail accounts of Chinese human rights activists” (Branigan, 2010, para. 14). Google also stated that they found where Gmail accounts of human rights activists living in China, Europe, and the United States were being hacked into by third parties on a routine basis (Branigan, 2010). During February, a statement was released by Secretary of State Clinton concerning the rights of all to have access to the Internet and “pledging to file a formal State Department protest regarding this month’s alleged Google China censorship and hacking” (Baer, 2010, para. 1).

Strategic and Operational Challenges

Because of these latest developments, Google found themselves in the position of needing to make some very difficult decisions. The company needed to decide whether or not they should remain in China and agree to the terms of the Chinese government. These terms essentially meant allowing third parties to access and monitor the company’s site and Gmail accounts. However, Google seems to have found a solution for this dilemma by providing searchers with a link to the company’s uncensored Hong Kong website. The Chinese government seems to be in agreement with this solution and is allowing Google to remain in China for now (Horowitz, 2010).


When Google decided to enter the Chinese market, the company did so because they knew how important the Chinese market was for their business. They also realized that China provided an opportunity for the company to grow. However, entering China also resulted in Google being faced with having to make some serious ethical and legal decisions. These decisions include whether Google should continue to censor results on its website or if Google eventually needs to pull out of China. Currently, Google seems to think that giving the Chinese access to some information is better than not granting them access to any information.


Baer, M. (2010). _Cyber attacks & the ethical dimension of the Google China episode_. Retrieved from

Branigan, T. (2010). _Google challenge to China over censorship_. Retrieved from

Google. (2009). _Google Investor Relations Code of Conduct_. Retrieved from

Hill, C. W. (2009). _International Business: Competing in the Global Marketplace_ (7th ed.). Boston, MA: McGraw-Hill Irwin

Horowitz, D. (2010). _Google Still in China_. Retrieved from

Case Study: Google in China Essay

The differences between Australia and China families Essay

The differences between Australia and China families Essay.

When we talk about family, there should be a house where parents and children can live together, with extended family link with grandparents, uncles, aunts and so on. Although the notions of family may be the same, there still are a lot of diversities between different countries’ family life. A comparison of family life in Australia and China from governmental, cultural and social aspects will be given in the following essay.

First of all, the biggest difference between the two countries’ family life resulted from the national characteristic policies, which lead to the essential difference in family structures.

As we all know, Chinese government formulated family planning policy to slow down the population increase, so most Chinese families only have one own child. But in Australia, the government encourage parents to procreate, according to the fertility policy, about $4,133 Baby Bonus will be paid to families following the birth or adoption of a baby. Usually, the Australian families have two or more children.

So from the very beginning, the family members of the two countries are different.

Secondly, the spirits and cultures of the two countries are totally different, these cause the Chineses and the Australians use dissimilar ways to deal with family events. An obvious diversity which can illuminate this is in China it is common that three generations live together(grandparents, parents and children), but in Australia it is hardly to see that. Since the Chinese culture is based on Confucianism, which requires people to show respects to the elderly, leaving the old people live alone will be considered to be unsuitable and condemned by society.

While people in Australia are more affected by the “freedom” “independence” spirits, they are more thirsting for privacy space. People dream for a independent house with a big yard which can keep them away from the crowds, they can not go well if live closely. So grandparents live apart from their children, and the links between family members are not so clear as Chinese people.

Also, as a result of cultural variances, the statuses of Chinese children and parents differ from the Australia’s. Since in Confucianism, the elderly are more experienced and sagacious, their words will be more valued. So in traditional Chinese families, parents are the authority of home, children need to show absolutely respects to the elderships, they are more expected to obey than to resist. In contrast, the Australia parents will put the children on an equal position. They talk to them as friends instead of in a commanding tone and they will apologize to children for their mistakes, which would be very hard for the Chinese parents to do so.

In a word, the diverse national conditions create varies family lives. China is a typical Asian country, Australia is affected a lot by the western countries, so from the differences in their family lives we can see the differences between the eastern and western cultures. It is hardly to say which country’s family life is better, both of them have their own characteristics, only the one fits its own needs is the best.


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The differences between Australia and China families Essay