From Wahaha Group’s point of view – with the division of ownership at 49% Wahaha Group, 25.5% Danone and 25.5 % Baifu – it was the majority shareholder in the JV. On the other hand, the Wahaha group of companies should not take home advantage to humiliate the business partner during the business transactions.Since a contract is binding, no party should go against the provisions and should seek amicable way of handling the situation. GOT IT. The case between Danone v. Wahaha was controversial, but sometimes expected in joint ventures. Many of the most important rules were violated in this case. Wahaha claimed that by investing in major Chinese drinks companies, the foreign business entity had interfered with its performance in the local market, thus it needed compensation. The Danone “takeover” in 1998 therefore produced significant resentment on the part of Wahaha Group and Zong. The facts of the case are presented to the best of our knowledge, with The Danone & Wahaha case looks into how this ten year plus and once "sweet" partnership turned sour. for $13,9/Page. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper.

Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. If the Chinese side feels it has been tricked or duped into signing away its rights, it will take action to correct the situation, as is the case in the Wahaha JV.• Do not expect a 51% ownership interest in a JV will provide effective controlFor foreign investors that decide to go forward with a 51/49 structure, it is important not to rely on control of the board of directors as a means to exercise control over the JV. For most of 2007, a public dispute was going on between Danone and Wahaha over their joint venture in China. Neither Danone nor Wahaha group receives any benefits from the profits of these non-JV companies. Therefore, they only registered an abbreviated license. In essence, breach of contract is an insincere act by the so called dominant company due to vested interest and greed for control of stake in the joint business operation (Daniels, Radebaugh and Sullivan 32). In Chinese corporations, the managing director and the general manager of the company have the actual power to dictate operations. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. This raised issues of water quality that the joint venture was producing and Danone Company thought this was a form of betrayal in its business endeavor. Questions: 1.How did the relationship between Wahaha Group and Danone change during the 11 years of cooperation?

Wahaha claimed that by investing in major Chinese drinks companies, the foreign business entity had interfered with its performance in the local market, thus it needed compensation. This is a form of business insensitivity that is not acceptable in international trade between two corporations, which have formally agreed to work together. China Economic Review (CER) has been a dependably independent voice on trends and developments in the greater Chinese economy for a quarter century. It is very important to note that decisions must be made unanimously.No comments available for this document. The dispute therefore threatens to destroy what was until recently a very successful JV. Here, the questionable water quality was linked to the operations of Wahaha Company, even though the reality about the bacteria that was found in the bottles.The other situation that the joint venture found itself in was the struggles between the competing interests, in which Danone considered its opponent to have violated the contract they signed, while Wahaha took its partner to be interfering with its operations and profitability.The situation was complex because Wahaha applied for arbitration in the case whereas the opponent acquired a court order to freeze the assets of ten companies associated with Wahaha. We recently extended our product range to designed mugs and providing customising service.

Case Study of Danone Essay...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. Danone apparently learned about it in 2005 and insisted it be given a 51% ownership interest in the non-JV companies. The “bullying and slander” accusations he labeled against his partner and remaining adamant that “he would make sure that Danone does not win for sure and his company does not lose for sure” could be treated as double speak and was not supported by reliable evidence.Another issue that significantly featured in the case was the competition that Wahaha Company experienced when Danone Company launched its business operations in the Chinese market.

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However, if all the internal attempts to resolve the matter fail, the best option would be to seek legal intervention properly without applying double standards.This is IvyPanda's free database of academic paper samples. However, Danone realized that the latter company was bottling and selling drinks as a separate entity without informing its partner, thus violating the previously signed agreement.The businesses were almost related, thus the two companies agreed to work together in a non-competitive manner. An international joint venture (it is most often) is a separate legal organizational entity in which at least two partners participate economically, geographically and legally independently of each other.