Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 14.08.2008
Length: 24 pages
Data source: Published sources
Abstract
For most of 2007, a public dispute was going on between Danone and Wahaha over their joint venture in China. The 'antagonism' had even led to the Chinese and French presidents calling on both companies to resume 'peace talks' and find an amicable solution. The case looks into how this ten year plus and once 'sweet' partnership turned sour. It serves as a basis to further explore what could have been considered as a 'win-win' partnership; how it was formed, further developed and how to anticipate and mitigate certain risks when doing business in China or other emerging markets, for example, how to define growth and the share of risks and rewards. It then examines what will happen next and the future outlook or likely scenario for Danone's businesses in China.
Location:
Size:
2006 revenue, Wahaha - CNY18.7 billion (USD2.5 billion), Danone - EUR14 billion (USD18.5 billion)
Other setting(s):
2007
About
Abstract
For most of 2007, a public dispute was going on between Danone and Wahaha over their joint venture in China. The 'antagonism' had even led to the Chinese and French presidents calling on both companies to resume 'peace talks' and find an amicable solution. The case looks into how this ten year plus and once 'sweet' partnership turned sour. It serves as a basis to further explore what could have been considered as a 'win-win' partnership; how it was formed, further developed and how to anticipate and mitigate certain risks when doing business in China or other emerging markets, for example, how to define growth and the share of risks and rewards. It then examines what will happen next and the future outlook or likely scenario for Danone's businesses in China.
Settings
Location:
Size:
2006 revenue, Wahaha - CNY18.7 billion (USD2.5 billion), Danone - EUR14 billion (USD18.5 billion)
Other setting(s):
2007