SM Consultancy (“consultancy”) had been hired by SingChina Tire Pte Ltd (“SCT”) to review their operations. SCT was a joint venture between SingChina Investment Holdings Ltd (“SCIHL”) and with Chinese partners from the previous SCT, a state owned tire manufacturing plant.
SCIHL took over the management control of SCT in 1995. SCIHL brought about a lot of changes to the joint venture, including appointing many foreign managers into key positions. The former Chinese general manager was demoted to deputy general manager, and was made accountable to the newly appointed general manager. Kimberley Tan joined as a finance manager; her predecessor was also demoted to deputy finance manager reporting to her.
The transition of leadership and ownership surfaced a lot of issues. Simultaneously, the modernization in SCT using imported technology and machinery also brought catastrophic changes in operations.
Five operational issues had been identified by Sim Tan, the finance manager, for this consultancy work. Under the scope of work, the consultancy was to investigate the five issues and to identify, evaluate and recommend courses of actions. The actions were recommended with consideration of the cultural differences while balancing the company’s ability to achieve its business objectives.
The project sponsor was the General Manager, Mr. Michael Chong. Finance manager Kimberley Tan was appointed to work with the consultancy to ensure the successful completion of this consultancy project.
3. INTRODUCTION TO CHINESE BUSINESS PRACTICES
The Chinese business practice is vastly different from the Western method that most of us may be used to. Of course, with the Chinese economy opening up, China's joining of WTO and the Olympics in 2 ...