What began, as all partnerships do, with good intentions and dreams of profits, has come to bitter accusations, angry lawsuits and the very real. The bitter legal war will caution foreign mncs to reassess. Valuable lessons can be learned from this dispute for. The history of wahaha danone cooperation was described by the author of the paper based on case study written by sunny li sun and hao chen peng, report of steven m. Bittersweet partnership case solution, for most of 2007, a public dispute between danone and wahaha passed its joint venture in china.
For most of 2007, a public dispute was going on between danone and wahaha over their joint venture in china. Main brands include danone, actimel, activia, danonino and vitalinea in fresh dairy products, evian, volvic, wahaha and aqua in bottled waters, and lu in biscuits and cereal products. Strategy is about making choices and weakness are the areas where a company can improve using swot analysis and build on its. Within the next decade, wahaha became chinas biggest beverage producer and the 5th largest worldwide, with annual sales of rmb 11. Essential dairy and plantbased products, waters, early life nutrition, and advanced medical nutrition. Danones wrangle with wahaha case study laser summer school. Swedish arbitration court rules in favor of danone china briefing. Problems lessons learned danone s results in court wahaha s background founded by zong qinghou who was a retired teacher in 1989, opend wahaha nutrition food. Caring for our aging parents and ourselves kindle edition by gross, jane. The antagonism had even led to the chinese and french presidents calling on both companies to resume peace talks and find an amicable solution. Danone and wahaha prezi copy of copy of joint venture. Between danone and wahaha, through their joint venture in china the antagonism had even the chinese and frenc. Danones wrangle with wahaha by vadic patel on prezi. Their partnership should have been a role model of winwin cooperation.
Lesson for the future according to bosshart at alia 2010, p. A bittersweet partnership third, communication is what the mother company and the local one needs to do in order to guarantee the development. How could a promising relationship turn bitter, and why. Dow jones asian equities report 1996 danoneasiachairman 2. Lessons for joint ventures in china, and document of zhang and van deusen 2010. It is also ranked second in biscuits and cereal products.
In 2007, a dispute erupted between the two members of the danone wahaha joint venture partnership. Rajesh kumar is a principal of global advisory consulting in new zealand. However, in 2007, a battle broke out between wahaha and danone over corporate control. Despite all this success, danone and wahaha became trapped in a complex and thorny relationship. Stephen specialises in litigation and arbitration in the fields of commercial, company, trusts and business law. Some of the companys products are branded dannon in the united states as of 2018, danone sold products in 120 markets, and had sales in 2018 of 24. Canon dr c120 pdf download canon dr c120 pdf download e52a6f0149 pro,,users,,can,,press,,the,,advanced. The swot analysis of reinventing the san miguel corporation hbr case study includes analysis of internal and external factors. The company is listed on euronext paris where it is a component of the cac 40 stock market index.
More than 30 participants gathered at a discovery event to share imds latest research and perspectives on doing business in china. What leverage and contributions can they bring to the table. French food giant danone and chinas largest soft drink maker wahaha announced on wednesday that they would put an end to their joint. Danone, formed a strategic joint venture jv partnership in 1996. Solved danones wrangle with wahaha in 1996, danone. Throughout most of 2007, is a public dispute between danone and wahaha over their joint venture in china. From the case of wahaha and danone joint venture many. Bittersweet partnership excel file, subjects covered arbitration diversification emerging markets expansion joint ventures litigation management controls risk management by stewart hamilton.
According to jonathan chajet, china managing director for consultancy interbrand, he pointed out the essential of this lesson is that if wishes to build up a brand in china, it is better to build from ground to up. What were the intentions of wahaha group and danone when setting up joint ventures in china. Solved please include a word count at the end of the. The key learnings in this case will apply to how to make all partnerships work. Who is having the last laugh xls file, danone v wahaha a. Last year, a longstanding trademark dispute between the jv members, embedded within a broader clash of national and organizational cultures, came to a head. Wahaha accused danone of trying to purchase its nonjoint venture companies at unreasonably low prices. Danone and chinas wahaha agree to end partnership france 24.
With a background of high profile work for the dti and inland revenue as junior counsel to the. After nine years, what started out as a sweet joint venture partnership began to unravel amid a public dispute that led to bitter lawsuits and ended with wahaha buying out danone s interests in the joint venture and zong eventually becoming the richest person in mainland china. An impressive milking system case study solution, parmalat spa. Through our two main affiliates, wahaha and robust, danone group holds nearly 50% of the chinese market for packaged water. Who is having the last laugh case solution, in april 2007, revealed zong qinghou, founder and chairman of hangzhou wahaha group from all of its joint venture with danone formed, details about danone. How did the relationship between wahaha group and danone change during the 11 years of cooperation. Wahaha accused danone of excessive control and bad faith. Dr kumars expertise lies in the domain of international businessstrategy and his recent work in this domain has focused on the challenges of managing strategic alliances. Use features like bookmarks, note taking and highlighting while reading a bittersweet season.
Download it once and read it on your kindle device, pc, phones or tablets. Between danone and wahaha, through their joint venture in. Chinas leading beverage company, hangzhou wahaha group wahaha, and the french beverage giant, groupe danone danone, formed a strategic joint venture jv partnership in 1996. Who is having the last laugh case solution, danone v wahaha a. The high profile danone wahaha joint venture case has been used as an example of how joint ventures in the country can unravel and. Who is having the last laugh case solution, in april 2007, the zong, hangzhou wahaha group founder and president of all its joint venture with danone, revealed details of the plan danone to buy a 51%. An impressive milking system case study analysis, subjects covered corporate governance fraud restructuring by stewart hamilton, ivan moss source. Jing wang shows that transnational and local advertising agencies in beijing are at the forefront of shaping the brand identity of china itself, along with its many exports and imports. A bittersweet partnership may 9 2007 danone filed a case for arbitration against zong and wahaha in stockholm. Brand new china is a crossdisciplinary examination of media advertising in china. Who is having the last laugh case study solution, danone v wahaha a. From the case of wahaha and danone joint venture, many lessons and values could be learned. Danone group 2001 annual report annual report pdf free. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Wahaha did, as danone had a greater chance of winning in court. Factors affecting international commercial dispute. Chinese overseas direct investment in the european union, europe china. In the case study, danone formed an affiliation with wahaha group to get a better foothold in the expanding chinese market. Joint venture case study essay example graduateway. The case looks into how this ten year plus and once sweet partnership turned sour.
Who is having the last laugh case study solution, in april 2007, zong qinghou, hangzhou wahaha group founder and chairman of all its joint ventures formed with danone, reveals details of the plan danone bu. The mother one, danone, did not communicate effectively with wahaha about strategies to capture the chinese market share effectively. April 9, 2007 danone send a formal letter to the chairman of the danonewahaha jv requesting legal action against wahaha for illegal competition and unlawful use of the wahaha trademark, with a grace period of 30 days. Danone case introduction to international business studeersnel. Their perspective what leverage and contributions can they bring to the table. Harvard business case studies solutions assignment help. Danone, a world leading food company built on four business lines. Danone went public with allegations against its partner, zong qinghou, claiming that zong had been producing identical products bearing the wahaha trademark and had been selling them using the joint ventures distribution channels. In addition, the power and psychological edge gave danone an advantage over wahaha, and danone would want to use it to secure a greater share of the outcomes or achieve its preferred solution. The danonewahaha partnership once seemed ideal, but the companies relationship has deteriorated.
The three leading brands danone, evian and lu account for around 48% of sales. Participants included representatives from a variety of industries, ranging from finance to pharmaceutical, and a number of companies, ranging from small businesses just entering the chinese market to multinationals with years of experience and thousands of. The mnc desires to development in china especially joint venture, though it could be. Bittersweet partnership case solution, for most of 2007, a public dispute that is. In 1996, danone group and wahaha group combined forces in a joint venture jv to form the largest beverage company in china.