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Deck’s Romanian Joint Venture
Michael H. Moffet and Gregory Unruh
Thunderbird School of Global Management, USA
Volume 6: 2009, pp. 169-182: ABSTRACT
The Deck Romania case is intended for MBA and Executive Education programs and focuses on the ‘gritty’ aspects of business in emerging market countries. It is particularly powerful in combining traditional managerial concerns like emerging market strategy and global supplier relationships with the larger challenges of cross-cultural and country differences in the conduct of business. Deck is a U.S.-based automotive supplier and part of a joint venture in Romania. In October 2006 the JV needed to expand to meet the needs of one of its major global customers, Renault. The investment would be to support Renault-Dacia’s highly successful new world car, the Logan. But the question of expansion reveals that the JV does not meet many of Deck’s global manufacturing and business practice criteria. Deck’s dilemma is how to respond to the pressure from its global customer to make a substantial investment in a small market that may not meet financial or business practice expectations.