Danone’s wrangle with wahaha case – discussion

 

This week’s discussion will focus on cultural decision-making using the case study about Danone in China (p. 255 in the textbook).

This case focuses on the cultural differences and management styles of the French company Danone Group in its joint venture with its Chinese company partner, Wahaha Group.  In this situation, Wahaha established other companies outside the joint venture that Danone Group claimed infringed on Danone’s interests. These infringements were alleged to be in violation of a non-compete clause and unauthorized use of the “Wahaha”’ trademark owned by the joint venture. Danone sued Wahaha and the lawsuit eventually resulted in Danone Group accepting a cash settlement from Wahaha Group to the “Wahaha” trademark.
 

After reflecting on this situation involving cultural differences, as a leader, how might an international company enter into a joint venture in Saudi Arabia with a domestic company and demonstrate the commitment to working together well, respecting the Saudi Arabian culture and management style to resolve such a conflict? 

What types of decisions would you need to make? Would there be bias in the decision-making process? Can you give an example? 

Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references supporting your answer. 

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