1. Is it right for MMC to hold Ross to the same performance goals as managers of units in other countries? What other approach might it adopt?

It had been a very bad morning for John Ross, the general manager of MMC’s Chinese joint venture. He had just gotten off the phone with his boss in St Louis, Phil Smith, who was demanding to know why the joint venture’s return on investment was still in the low single digits four years after Ross had taken over the top post in the operation. “We had expected much better performance by now,” Smith said, “particularly given your record of achievement; you need to fix this John! Our patience is not infinite.
You know the corporate goal is for a 20 percent return on investment for operating units, and your unit is not even close to that.” John Ross had a very bad feeling that Smith had just fired a warning shot across his bow.
There was an implicit threat underlying Smith’s demands for improved performance. For the first time in his 20-year career at MMC, Ross felt that his job was on the line.