Report: Key conflicts between Wahaha & Danon The main causes of conflict seem to derive from different attitudes towards key issues in the formation and operation of the joint venture‚ suggesting major differences in business culture and expectations as to how business should and is being conducted. The first and main problem described in the case study revolves around the ownership structure and the control over the JV. It seems that the Chinese Wahaha expectations were that their 49% of the
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and China’s Wahaha Group joint venture agreement in the 2007-2009 period‚ centres on the different attitude towards Wahaha’s non joint-venture subsidiaries. This dispute highlights the lack of cooperative strategic management and effective communication‚ the lack of sound institutionally provided legal structure to support joint venture contracts and perhaps ultimately the lack of cultural fusion. Based on research into organisational behaviour one can already see that the Danone Group’s preference
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III. Wahaha Versus Danone : a) The Joint-Venture : 1- Analysis of the conflict between Danone and Wahaha: In an interview with internet portal Sina quoted as saying‚ Zong Qinhou‚ boss of Wahaha Group‚ the first Chinese beverage producer Danone owns 51% of which‚ called the Chinese government "to enact rules to protect domestic companies from malicious acquisitions "‚ denouncing the takeover attempt of subsidiaries of his company by the French. Verbal attacks against Zong Danone represent
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COMMENTARY Jingzhou Tao and Edward Hillier A Tale of Two Companies The Danone-Wahaha dispute is a story of the relationship between two very different entities against a backdrop of incredible change. The dispute reveals many questions that China faces as it integrates into the world economy‚ such as what to do when rule of law leads to an unpopular result or harms a valued Chinese company. The players Group Danone SA‚ a Paris-based multinational corporation (MNC)‚ is a giant in the global
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Joint Venture between Danone and Wahaha French’s Danone and China’s Wahaha had been a very successful joint venture in China. Danone’s capital‚ expertise & technology know-how‚ combined with Wahaha’s huge local presence in the market had seen the company soared in the food & beverage industry. It was until then when Danone accused its partner‚ Zong‚ founder of Wahaha of illegally selling Wahaha brand products using a distributor not selected by the joint venture agreement. Danone also filed for arbitration
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———————————— PRESS RELEASE ——————————— Paris‚ September 30th‚ 2009 Danone and Wahaha Group reach an amicable settlement Danone and Wahaha Group are pleased to announce that they have reached an amicable settlement today‚ subject to the approval of the Chinese Authorities. The settlement has been the outcome of renewed efforts of both parties to put a final end to their dispute through productive negotiations that have taken place in a spirit of mutual respect and with the support of both the
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Danone Case What were the intentions of Wahaha Group and Danone when setting up joint ventures in China? The Wahaha Group did very well in the Chinese market around the mid 1990s‚ but because foreign multinationals were rapidly entering China‚ it was afraid that it might lose its competiveness. The company was eager to expand its scale and market share in China‚ but it lacked the necessary financial capital to do so. This is why they wanted to cooperate with Danone. Wahaha needed cash‚ and also
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International Business Strategy for Globalization” 2: Porter’s Five Force model of Competition: http://www.managementstudyguide.com/porters-model-of-competetion.htm 3: Cola Wars in China: Case Study Analysis Source: Strategy Analysis and Practice 2005 McGraw Hill Education Europe 4: Cola Wars in China : The Future is Here ; Case Study by Nancy Dai at Richard Ivy School of Business. 5: Cola Wars – UTS 21715 – Strategic Management Lecture 3 University of Technology Sydney 6: Alon‚ I.‚ Littrell‚ R. F.‚ &
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When and how did Danone expand into the Chinese market? There are several products primarily sell by Danone are yogurt‚ biscuits‚ and beverages in China. Danone emerged Chinese market at the end of 1980s. Since then‚ Danone has invested heavily in China‚ included building factories and expanding production. Danone purchased shares of numerous market and industry leaders as well. Danone has a network of partnership with few of local market leader in China‚ including Wahaha Group which is 51%‚ Robust
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dynamics 2: strategic alliance partners Case 12.1 Danone’s affair in China As of 2007‚ Danone‚ the French multinational food company‚ was in a fierce battle with China-based Wahaha Group (the largest beverage producer in China) to win control of their joint ventures (JVs) in China. The fight is reported to have started in 2005 when Danone uncovered some unusual financial figures at the JVs‚ but this did not become known to the public until 2007‚ when Danone and Wahaha Group failed to resolve their disputes
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