Danone v. Wahaha: Lessons for Joint Ventures in China Steven M. Dickinson Harris Moure PLLC www.harrismoure.com Danone Group and its partner‚ Wahaha Group Company‚ are shareholders in a joint venture company that is the largest beverage company in China. A recent dispute between the partners now threatens to wreck the joint venture. What lessons can be learned from this dispute for investors considering new joint ventures in China? Disputes such as this are not inevitable in China. They can be
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The Advantages of Joint Ventures * Provide companies with the opportunity to gain new capacity and expertise * Allow companies to enter related businesses or new geographic markets or gain new technological knowledge * access to greater resources‚ including specialized staff and technology * sharing of risks with a venture partner * Joint ventures can be flexible. For example‚ a joint venture can have a limited life span and only cover part of what you do‚ thus limiting both your commitment
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Case Discussion Questions 1. GE used to prefer acquisitions or Greenfield ventures as an entry mode rather than joint ventures. Why do you think this was the case? According to our textbook‚ a firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up‚ the so-called Greenfield strategy‚ or by acquiring an enterprise in the target market. Acquisitions have three major points in their favor. First‚ they are quick to execute. By acquiring an established
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interests and joint ventures 7. Foreign activities 8. Translation and consolidation of foreign subsidiaries 9. Financial reporting in the not-for-profit and public sectors 10. Fund accounting 11. Accounting standard-setting environments 12. Financial instruments and income tax allocation 13. Introduction to intercorporate investments 14. Consolidation subsequent to acquisition 15. Intercompany transactions 16. Issues in ownership interests and joint ventures 17
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Acquisitions versus Greenfield investments: International strategy and management of entry modes Anne-Wil Harzing Two possibilities when expending to foreign markets: 1) Non-equity or equity entry mode 2) When chosen‚ decide between acquisition and Greenfield This paper investigates how a firms’ strategy will influence the entry mode decision of the firm (MNC) and investigates whether acquisitions and Greenfield subsidiaries are being managed in the same or in a different way. Two types
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“CORPORATE CULTURE IN AN INTERNATIONALJOINT VENTURE” A case study of Sony Ericsson Group Members: Arslan Ahmed (1983-11-07) Zhaohua Pang (1983-11-16) Tutor: Leif Linnskog Seminar Date: 28th May‚ 2009 Master Thesis – EFO705 CORPORATE CULTURE IN AN INTERNATIONAL JOINT VENTURE Abstract Seminar Date: 28th May‚ 2009 Level: Master Thesis – EFO705 Authors: Arslan Ahmed (1983-11-07) & Zhaohua Pang (1983-11-16) Title: Corporate Culture in an International Joint Venture – A Case Study of Sony Ericsson Tutor:
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market. Among the strategies on mode of entries are; Exporting‚ Licencing‚ Joint Ventures and Manufacturing (Ghauri and Cateora‚ 2010). Knowing that the economy in Russia is emerging and its automotive industry is strong‚ rules and regulations as well as the tax and tariff imposed by the target market for foreign businesses‚ the best mode of entry that can be applied by the company is through joint venture strategy. Joint venture is a tool in a development of a business between two or more organisations
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Mergers and Joint VenturesSharod L. Edwards‚ Derrick Hubbard‚ Oriel Frederick‚ Michael Thompson‚ Charles Barker‚ and Valerie Carpenter ECO/365October 27‚ 2014Daniel PuenteMergers and Joint VenturesWhile companies are faced with many challenges one of the most challenging are when companies merge. There are several different types of mergers which these companies must consider horizontal‚ vertical‚ and conglomeration. A horizontal merger occurs when two companies from the same industry consolidate
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A. Impact of the Joint Venture for Vinafood II 12 B. Impact of the Joint Venture for American Rice Inc. 15 C. Impact of the Joint Venture for Vietnam’s economy 16 D. Culture of trust in Joint Ventures 16 III. ALTERNATIVES 23 A. Parboil Facility 23 B. Fully-Owned ARI Business in Vietnam 26 RECOMMENDATIONS & CONCLUSION 28 EXECUTIVE SUMMARY When American Rice inc. decided to enter the uncertain Vietnamese market‚ it decided to enter a joint venture with a local company
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There were good points made in the case as to why Whirlpool decided to start a joint venture with Tatramat. These reasons were the global strategy of Whirlpool and the economic problems of Tatrmat. Though these are good reasons‚ I would have recommended that the two do not join in a joint venture. Instead I would have recommended the greenfield investment. A greenfield investment is when a parent company starts a new venture in a foreign country by constructing new operating facilities from the ground
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