NewSilk

NewSilk

Initial Situation – A German mechanical engineering company had a 75% interest in a joint venture in Thailand . A Thai partner, which also managed day-to-day operations, had a 25% stake. The German parent company did not spend much time worrying about its Thai subsidiary. The sales figures were not bad enough to draw the attention of its executives, although its share of the market was unknown. The results seemed “in order” according to German standards.