Danone and Wahaha Case

The main causes of conflict seem to get ahead from different attitudes towards key issues in the formation and operation of the joint venture, suggesting major differences in business culture and expectations as to how business should and is being conducted. The outgrowth and main problem described in the case study revolves somewhat the ownership structure and the control over the JV. It seems that the Chinese Wahaha expectations were that their 49% of the JV meant full control, as the other 51% were split half-half between Danone and meandering(a) through the Singapore registered Jinjia.Danone later took over Peregrnes part fundament each(prenominal)y gaining the 51% of the JV and theoretically gaining effective control of the JV. This was not sure well by the Chinese partner and later by the Chinese public which interpreted the move as a takeover, resulting in a JV based on distrust and hostility between the partners. another(prenominal) source of conflict was due to the man agement structure agreed upon. good control of daily operations was handed to Zong and Wahaha, as the local anaesthetic mainland China experts, while the only involvement Danone had was through the board of directors. It seemed Danone was attempting to empower the local partner and was not fully aware of the potential implications. This led to dissatisfaction on both sides, as Danone felt it knows very little in unfeigned JV operations while Zong was feeling that Danone has left him to do all the hard work, only expecting to rip off the benefits of his efforts with little to no contribution.