David Joseph is a supermarket chain manager based in Milwaukee, Wisconsin. He wants to establish business relations with China because China is part of the fastest-growing economies in the world. Through one of his Chinese employees, Wang Xin, David reached an agreement to import green tea from a farm animal products import and export company in Zhejiang Province, China. The goods should be in time to reach the sales peak of Thanksgiving. David himself is also a tea lover, and he is very struck by the quality of this tea, and the packaging is better than he expected. He is looking forward to tea selling in his supermarket and even tirelessly lets Wang Xin write some bilingual advertisements for tea in local mainstream newspapers or broadcast on the radio. Because of the small volume of transactions, the freight for each transaction is relatively high. To make a profit, David's accounting department suggested that the price of Chinese green tea could be set at a slightly higher price than other imported green tea in other brands already on sale. However, the representative of Xincheng Company, Sheng Jiao, disagreed. He suggested that David should cut prices to compete with other brands of green tea. He argues that both parties can profit from economies of scale. Sell a lot of tea at a lower price. Because David did not mean to start running at a loss, he decided to adopt the advice of the accounting department. Three weeks later, Sheng Jiaoru called David from China and learned that the tea sales were not good enough. He once again suggested that David tries to cut the price, but David seems to have lost interest in the project. After a few more months, Sheng Jiao did not have the opportunity to make David interested in continuing cooperation. Eventually, he chose to let things end. Question, Analyze the case using business culture??
David Joseph is a supermarket chain manager based in Milwaukee, Wisconsin. He wants to establish business relations with China because China is part of the fastest-growing economies in the world. Through one of his Chinese employees, Wang Xin, David reached an agreement to import green tea from a farm animal products import and export company in Zhejiang Province, China. The goods should be in time to reach the sales peak of Thanksgiving. David himself is also a tea lover, and he is very struck by the quality of this tea, and the packaging is better than he expected. He is looking forward to tea selling in his supermarket and even tirelessly lets Wang Xin write some bilingual advertisements for tea in local mainstream newspapers or broadcast on the radio. Because of the small volume of transactions, the freight for each transaction is relatively high. To make a profit, David's accounting department suggested that the price of Chinese green tea could be set at a slightly higher price than other imported green tea in other brands already on sale. However, the representative of Xincheng Company, Sheng Jiao, disagreed. He suggested that David should cut prices to compete with other brands of green tea. He argues that both parties can profit from economies of scale. Sell a lot of tea at a lower price. Because David did not mean to start running at a loss, he decided to adopt the advice of the accounting department. Three weeks later, Sheng Jiaoru called David from China and learned that the tea sales were not good enough. He once again suggested that David tries to cut the price, but David seems to have lost interest in the project. After a few more months, Sheng Jiao did not have the opportunity to make David interested in continuing cooperation. Eventually, he chose to let things end.
Question, Analyze the case using business culture??
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