Danone's Dispute with Wahaha In 1996, Dance Group and Wahaba Group whined forces in jou versture (JV) to form the Dance became the first company to sell perishable dairy bevera e products cost to coas the US company in China. Last year, a long standing deak In 1967, Dace merged with a dupute between the JV French fresh cheese bes e d with produce Gervais to becoge Gera De broader clash of Is 1973, clothes, ce Geri D e to ahead Valuable les wi Bow Suchos New can be learned free this dispute (BSN b y which we for investors considering joint ventures rde Alec China The brewer Kroghout E l Whaha Joint Venture was established in 1995 by Ger l s 1907 d e Hangzhou Wahaba Food Group Co. Lid D c i t e Group Gaal Biscuit om of the LU brand, and in 1989, and Bai Fu Qi Lid. In 1997, D ebout the interest bought out the pe o peies of Nabisco of Bai Fa Qun and gained legal control of the TV with 51 la 1994, BSN changed to Groupe Dance percent of shares. While members of the JV we entitled to adopting the name of the Group's best known in use the JV's Wahaha trademak, in 2000, the Wahha tonal brand Under its current CEO, Franck Ribed the Group developed companies outside of the JV that sold company has pursued its focus on the three product groups products similar to those of the JV and wed the dairy, beverages, and cereals! trademark The Danone Group objecte de sought Today, Dance Fortune 500 copy with a mis to purchase those non companies ito poucebaty w ould affordable food and In A 2007, D o d o m1 beverage products for many people as powe pe of shares of W ha's frie JV Whath Group sejected the o t h Dec med 30 ww w for de Danone's Global Growth cond Berly the Wadeks D 1600.000 countries such as France, t he US, China 2000 Decoded 12 Mois Dec dispositif Danone's Backround Dance to its routes to Europe the early 20th No 1 worldwidefresh dairy products Is 1919. Ise Case opened a small your and No 2 worldwide bottle Spain. He samed it " Line Daniel No. 2 worldwide is baby to ther his Caruso was aware of new methods of mik fer conducted the Past e Paris He - No. 1 in Europe in medical writica its portfolio of hand products includes Activa decided to see this that d of for our The d e poste dairy product line Dar QUESTIONS: 1. How was the Danone and Wahaha Joint Venture (JV) formed? What was the structure of this JV? 2. What reasons made Danone decide to form a joint venture rather than create a 100 percent-owned subsidiary in China? Discuss this in context of the Institutional and the Resource Based theory of international trade. 3. What differences developed in this Joint Venture? Which aspects of national culture were responsible for these differences
