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1、www.hbr.orgHBRCASESTUDYANDCOMMENTARYCanMikekeeptheTroubleinParadisejointventurefromunraveling?byKatherineXinandVladimirPucikFourcommentatorsoffer•expertadvice.ReprintR0308ATheZhong-LianKnittingCompanyjointventureinChinaisoneoftheregion’sshiningsuccessstories.S
2、owhyisgeneralmanagerMikeGravesthinkingaboutpullingtheplugonit?HBRCASESTUDYTroubleinParadisebyKatherineXinandVladimirPucikFromMikeGraves’stallwindows,whichwereoutpattingyourselfontheback.”drapedinredvelvet,theviewofShanghaiwasWindlerremindedMikeaboutthemarginss
3、pectacular:thestatelyoldWestern-stylebuild-hewaslookingforacrossallofHeartlandSpin-ings,theriotofmodernskyscrapers,thefamil-dle’sbusinesses.“A4%ROIispathetic,”WindleriarneedleoftheTVtower.ButtodayMikesaid.“We’vebeenintheretenyears,Mike.Thebarelynoticedit.Clenc
4、hingacopyofhisChi-numbersshouldlookbetterbynow.”Hesaidhenesepartner’sproposalforanotheracquisi-waslookingfora20%ROI,addingthatsuchation—itwouldbethecompany’sfourth—henumbercouldsurelybeachievedthroughpacedthefloorandreplayedinhismindthatgreaterefficiencyandmorea
5、utomation.Andinmorning’sunsettlingphonecall.Windler’sview,thecompanyhadatleast1,200Hehadcalledhisboss,BillWindler,athead-employeestoomany.“Thatneedstobefixed,quartersinOhio,hopingtogetanicequotetofast,”hesaid.injectintothebriefremarkshewastomakeatMikeknewhisbos
6、swouldn’ttakenoforanthatday’sbanquetcelebratingthejointven-answer,buthehadalsolearnedthathisChi-ture’stenthanniversary.ButashegaveWindlernesepartnerswouldneveragreetodrasticaquickrundownofwhatheintendedtosay—movessuchasthelayoffssuggestedbyWindler.mostlyaboutt
7、hejointventure’sprogressto-Itwasbeginningtolookasthoughthefiveward“world-classquality”—Mikecouldsensegoodyearshehadspenthereasgeneralman-hisboss’sgrowingfrustration.Aboutfivemin-agermightbedestinedtocometoapainfulutesintothecall,WindlercutMikeoffinmid-end.Mikeco
8、uldn’thelpbutwonderifthosesentence,saying,“Don’tthrowyourshoulderharshwordsfromOhiowereawarningthathis©2003BYHARVARDBUSINESSSCHOOLPUBLISHINGCORPORATION.ALLRIGHTSRESERVED.HBR’scases