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ACRJ
Gentran Machinery, Inc. (B)
This case was prepared
by Dr C. Carl Pegels of INTRODUCTION
the School of Management,
SUNY at Buffalo as a basis
for class discussion rather
than to illustrate either effec-
William Stevenson had just completed a ten-day visit to GM
tive or ineffective handling of China, a joint venture in China by GM Pacific and Hangzhou
an administrative or business
situation. Heavy Machinery located in Hangzhou, China.
GM Pacific was headquartered in Hong Kong and was
This case has been prepared
with information provided the Pacific Rim subsidiary of Gentran Machinery, Inc., head-
by individuals in the organi- quartered in Philadelphia, Pennsylvania, USA.
zation on which this case
is based. However, all Stevenson had completed a report outlining the orga-
names, places, and locations nizational and operating problems of the GM China joint
in this case are fictitious to
ensure the anonymity of the venture that he had observed (See Gentran Machinery, inc.
organization.
(A).). The report shown below is Stevensons report outlining
Please address all correspon- his recommendations to Gentran Machinery management.
dence to: Dr C. Carl Pegels,
School of Management, TO: Mr. James Thompson, President, GM Pacific,
SUNY at Buffalo, Buffalo,
NY 14260-4000, USA. E- Hong Kong
mail: cpegels@acsu.buffalo.edu. FROM: William Stevenson, Executive Assistant, JV
Operations
DATE: September 20, 1998
SUBJECT: Recommendations — Joint Venture GM China
The report consists of two main areas: general recom-
mendations and overall summary. The details follow below.
I. General Recommendations
B. Organizational design
C. Responsibility system
F. American managers
G. Chinese managers
II. Summary
172
ACRJ
Chairman of the Board
Dong Hong Board of Directors
Zhu Bin
Dong Hong
James Thompson
President Jack Bartlett
James Thompson
General Manager
Jack Bartlett