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Danone’s Wrangle with Wahaha (Case Study Sample)


Danone’s Wrangle with Wahaha
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? Make sure these are your comments and not general comments or an example you got online.  For full points, I need to see your thoughts and opinions.
Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.


Danone Wrangle with Wahaha
Danone Wrangle with Wahaha
One of the major takeaways of Danone's Wrangle with Wahaha's case is the need for companies to avoid legal techniques to assert or even gain control in a Joint venture (Luthans & Doh, 2018, p. 255). With this in mind, a company needs to make critical decisions when investing in any country. A foreign company that enters into a joint venture with a Saudi Arabian domestic company should be ready to go the extra mile of learning about Saudi customs, culture, and work habits (Debellis, et. al, 2021, p. 334). This way, they will have adequate knowledge of the kind of goods and services that the people in the market want to purchase. Equally necessary is determining the percentage of ownership interest that both the international, and the Saudi company should have, and the legal status of the Saudi Arabian company (Luthans & Doh, 2018, p. 255)It is not advisable to enter a joint venture with a company that has a feeble legal foundation.
Before getting into a joint venture, it is important to understand what each party wants. Wants

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