Module I CrossCultural Cases Danone and Wahaha Cases
Module I CrossCultural Cases Danone and Wahaha Cases COM 105
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This 2 page Class Notes was uploaded by Alanna Wight on Friday December 11, 2015. The Class Notes belongs to COM 105 at Washington State University taught by Gallagher in Fall 2015. Since its upload, it has received 20 views. For similar materials see Com 105- Communication in Global Context in Communication Studies at Washington State University.
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Date Created: 12/11/15
Module CrossCultural Cases Danone and Wahaha conflict Danone Group 0 In 1996 Danone Group joined forces with Wahaha Group in a joint venture to form the largest beverage company in China 0 The Wahaha Joint Venture was established 1996 by Hangzhou Food Group Co Danone Group and Bai Fu Qin 0 In 1997 Danone bought out the interests of Bai Fu Qin thus gaining legal control through ownership of 51 of shares 0 In 2000 Wahaha subordinate organizations used the trademark and sold products similar to the Joint Venture but outside the JV Danone objected Danone is a very large corporation 0 160 plants and 80000 employees with a presence in five continents 0 Number 1 worldwide in fresh dairy number 2 worldwide in bottled water number 2 worldwide in baby nutrition number 1 in Europe in medical nutrition 0 In 2008 Danone recorded 84 growth and has long been listed in top 60 of top 100 corporations 0 18 Billion liters of bottled water in 2008 with revenue of 29B in water products 0 After a 10 year refocusing strategy it sold its Biscuits and Cereal Products to Kraft Foods leaving it with four business lines Fresh Dairy Products quot57 of consolidated sales in 2008 Water 19 of consolidated sallies in 2008 Baby Nutrition quot18 of consolidated sales in 2008 Medical Nutrition quot6 of consolidated sales in 2008 DanoneWahaha Joint Venture Conflict 0 When in 1998 Danone acquired 51 shares of the JV and capacity to elect the Board of Electors 0 Wahaha Group and Zong realized They had given complete control over the trademark to the JV A foreign company was now in control of the JV 39 SSEI Process of Conflict 0 In 1997 Danone and Wahaha signed a trademark transfer agreement But the transfer was not approved 0 In 1999 the parties signed a trademark contract but the law showed that the parties only agreed to an invalidation of the transfer agreement So the Wahaha brand was owned by the Wahaha group and could only be used by the JV 0 In 2005 the parties signed the No 1 amendment agreement which confirmed Wahaha Group as the owner of the trademark and its subsideries had the right to use the trademark 0 In 2009 Danone s group agreed to a cash settlement to relinquish claims to the Wahaha name 0 The conflict emphasizes cultural differences in managing conflicts What are these