Reasons for Failure of Joint Venture Case - amazonia.fiocruz.br

Reasons for Failure of Joint Venture Case Video

An organization seeks to gain competitive advantage over its local competitors by source its production operations overseas to its subsidiary companies to access lower cost and higher quality resources and also compete successfully in the host country by transferring the latest technology, expertise and knowledge.

The quarrel between Danone and Wahaha Group. His idea was to sell nutritional milk drinks aimed at children which were not common during that period. As private ownership was illegal during that time, he partnered with the local government Liu, and created the state owned Wahaha Nutritional Foods Factory, later Wahaha Group with Zong as. A joint venture is a contractual agreement joining together two or more businesses in which each agrees to share profit, loss, and control in a specific enterprise.

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While a joint venture might seem similar to a partnership, there is one key difference that sets them apart. The joint venture in our case is between Hangzhou. What were the intentions of Wahaha Group and Danone when setting up joint ventures in China? Based on Danone first experience in China, Danone looking for experince partner in China who knows about the culture inside China.

In response Danone set up a joint venture with reputable companies that give Danone huge advantage in Chinese market. Beside that Wahaha group as a Danone partner wanted acquire technology and managerial skills transfer knowledge from Danone.

In this partnership. Danone, as a global multinational cooperation, may concerned about the risk of technology transfer and intellectual property management to the local Chinese ambitious company. The merging different management style due to the culture diversity and the priority to the outcome.

Indeed, the conflict with each partner of their interest ratio. The interest ratio has changed during their period of joint venture.

Failures of the Wahaha Joint Venture Company

Lessons for Joint Ventures in China. Danone and Wahaha Case Study. Objectives and scope. Danone did not want to rock the boat with Wahaha as it was pursuing its own interests separately too.]