Alternatives

1.To reduce
w o r k f o r c e . Pros: (a) The labor cost will reduce; (b) Profit will increase.C o n s : ( a )
T h e w i t h d r a w a l o f s u p p o r t b y t h e C h i n e s e m a r k e t t o t h e product;
(b) It takes away the source of living of its workers; (c) Non-fulfillment of
corporate responsibility by contributing to unemploymentin the community.

2.To promote or encourage innovation to improve the product.P r o s : ( a )

S a l e s i n c r e a s e s ; ( b ) P r o f i t i n c r e a s e s ; ( c ) T h e t e n u r e o f workers will
not be affected.Cons: (a) There is uncertainty that the increase of sales
would reallytransform into an increase of profit considering that another variable
ise n t e r e d i n t o t h e p r o d u c t i o n , t h a t i s , t h e c o s t o f i n n o v a t i o n ;
( b ) T h e uncertainty of whether or not such innovation can catch the interest of the
market.

3.T o i n c r e a s e p r o d u c t i o n b y t h e s a m e n u m b e r o f w o r k f o r c e t h r o u g h
empowerment (i.e. trainings, delegating) and closer implementation of managerial
control.Pros: (a) The efficiency of workers improves; (b) Sales increases; (c)Profit
increases; (d) The demand for raw materials from suppliers willalso increase thus
contributing to the economic development of thecountry as a whole.Cons: (a)
The negative response of workers towards changes as itwould mean for
them to go out of their comfort zones.
Solution
Alternative 3 is recommended.

one is to directly cut ties and end the joint partnership for shui. this would incur more
cost for the company and it will be harder for them to penetrate the mar!et by
operating from outside china, losing out to a fast growing economy with big
opportunities for businesses. on the other hand, this can be seen as an opportunity
to expand to other potential big market countries such as India.the second option is
to convince the american partners and give ample time to study the chinese
business environment and culture to align the american business objectives with it.
they maintain the current benefits that they get life low labor and production costs.
This decision can also maintain their momentum of building a good relationship with
the Chinese government, which in the long run will be beneficial for shui to expand to
other opportunities in the chinese market. then again, waiting out for a longer time for
these opportunities to rise can male the business potentially lose out on other
opportunities. an alternative option also developed where specific options such as
manpower downsizing and exploring licensing agreement possibilities are presented.
this presents options that may be advantageous to one part of the business, but may
be detrimental to the other components of it