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Closing Case: Chicago versus Shanghai Emerging Markets/Ethical Dilemma Richard Wang is president (country manager) for D

Posted: Sun Jul 03, 2022 5:21 pm
by answerhappygod
Closing Case: Chicago versus Shanghai Emerging Markets/EthicalDilemma Richard Wang is president (country manager) for Dream HotelChina, whose corporate headquarters is in Chicago. Wang has anengineering degree from Shanghai Jiao Tong University and an MBAfrom the University of Texas at Dallas. After obtaining his MBA in1995, Wang worked at Dream Hotel Chicago and picked up a green card(US permanent residency) while maintaining his Chinese passport. In2005, when Dream Hotel opened its first location in China—in Wang’shometown Shanghai—he was tapped to be one of the first managerssent from the United States. China of the 21st century wascertainly different from China of the 1990s that Wang had leftbehind. Reforms were in the air, multinationals coming left andright, and his two phones ringing off the hook from headhuntersshouting to him about “career opportunities.” As a manager, Wanghas shined in Shanghai. He has been promoted to replace an expat tobe the number one executive in charge of all Dream Hotel locationsin China. His wife and two children (born in 2001 and 2003 inChicago) are also happy. After all, Chinese food in Shanghai is alot more authentic than that in Chicago. Grandparents, relatives,and friends are all happy to see the family back. In Chicago,Wang’s wife, Lily, a Chinese language teacher by training, taughton a part-time basis, but could not secure a full-time teachingposition because so few schools offered Chinese. Now she isprincipal of a great school in Shanghai. The two children areenrolled in the elite Shanghai International School, the cost ofwhich is paid for by the company. Shanghai is not perfect, but theWangs feel good about coming back. At the end of 2017, president ofDream Hotel Asia Pacific, an American expat who is co-located withWang in the same building in Shanghai, has a conversation with him:Richard, I have great news for you! Headquarters wants you to moveback to Chicago. You’ll be in charge of strategy development forglobal expansion, working directly under the group vice president.Isn’t that exciting?! They want someone with proven success. Youare my best candidate. I don’t know what design they have for youafter this assignment, but I suspect it’ll be highly promising.Don’t quote me, but I’d say you may have a shot to eventuallyreplace me or the next Asia Pacific president here. While Ipersonally enjoy the work here, my family is really fed up with theair pollution, especially on a winter day like this. Or folks inChicago may eventually want you to go somewhere else like Russia orBrazil or Turkey or Cuba. As you know, some of our earlierexperience in sensitive countries tells us that a fantasticthird-country national may be an awesome Dream Hotel manager. Andyou can be that awesome third-country national! Frankly, I don’tknow but I’m just trying to help you speculate. I know it’s a bigdecision. Talk to Lily and the kids. But they lived in Chicagobefore, so they should be fine going back. Of course, I’ll put youin touch with the folks in Chicago directly so that you can askthem all kinds of questions. Let me know what you think in a week.Instead of calling his wife immediately, Wang has decided to waittill he gets home in the evening so that he can have a few hours tothink about this. Going from Chicago to Shanghai, Wang, with hisChinese passport, is a host-country national (HCN). However, withhis green card, he is also considered a US national and thus anexpatriate. He wonders whether he should accept the new assignment.He thinks this will be an exciting career move for him, but he isnot sure if his family will like it
Q.. Will Lily and the children be happy about this move? Why