Danone’s Wrangle with Wahaha
This week’s discussion will focus on cultural decision-making using the case study about Danone in China (p. 255 in the textbook).
This case focuses on the cultural differences and management styles of the French company Danone Group in its joint venture with its Chinese company partner, Wahaha Group. In this situation, Wahaha established other companies outside the joint venture that Danone Group claimed infringed on Danone’s interests. These infringements were alleged to be in violation of a non-compete clause and unauthorized use of the “Wahaha”’ trademark owned by the joint venture. Danone sued Wahaha and the lawsuit eventually resulted in Danone Group accepting a cash settlement from Wahaha Group to the “Wahaha” trademark.
After reflecting on this situation involving cultural differences, as a leader, how might an international company enter into a joint venture in Saudi Arabia with a domestic company and demonstrate the commitment to working together well, respecting the Saudi Arabian culture and management style to resolve such a conflict?
What types of decisions would you need to make? Would there be bias in the decision-making process? Can you give an example?
Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.
You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post’s answer. Normal course dialogue does not fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
Chapters 4 & 5 in International Management: Culture, Strategy, and Behavior
Chapter 5 PowerPoint slides in International Management: Culture, Strategy, and Behavior
“Brief Integrative Case 2.2: Danone’s Wrangle with Wahaha” (p. 250) in International Management: Culture, Strategy, and Behavior
Hinson, J., Whitney, P., Wilson, C., & Nusbaum, A. (2019). Working memory loads differentially influence frame-induced bias and normative choice in risky decision making. PloS one, 14(3), e0214571.
Borrero, S., Acosta, A., and Medina, A. (2020). Culture, strategy, and firm performance: a meta-analysis. Academia Revista Latinoamericana de Administración, 33(1),147-176.
Caputo, A., Ayoko, O., Amoo, N., & Menke, C. (2019). The relationship between cultural values, cultural intelligence and negotiation styles. Journal of Business Research, 99, 23-36.