Danone’s Wrangle with Wahaha (Case Study Sample)
Our content this week reflects on the impact of conflict on decision-making. As a decision-maker within your organization, it is important for you to deal with conflict in a skilled manner. Doing so can create positive outcomes and provide opportunities for improvement rather than undesirable results.
After reading the case, reflect and write your paper on the following:
What was the problem in the joint venture that triggered the conflict between the two companies?
What were the differences of each company’s understanding of their own respective roles and responsibilities in this venture?
Did any aspect of organizational culture or national culture affect this perspective?
As a leader, what are some ways you can handle conflict when it arises?
Danone’s Wrangle with Wahaha
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Danone’s Wrangle with Wahaha
Multinationals can encounter significant cultural variances and incompatibility especially when two different cultures are concerned. As a flourishing joint venture model, the high-profile Danone/Wahaha dissension turned into a two-year legal rivalry against the violation of the prominent Wahaha brand. One of the major difficulties in the joint venture was the absence of a shared creed and the friction of management cultures. When Danone found out that Wahaha had formed mirror enterprises that were creating and selling products similar to those of Danone, Danone demanded arbitration and filed the lawsuits in foreign countries (Luthans & Doh, 2018, p. 238).
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