Danone and Wahaha's 10-year marriage in China

Extract

[...] Wahaha launched a series of criticisms in the media: “forcibly acquisition at a low price” & "tricky contracts" Danone issued an ultimatum to Wahaha, saying that it would initiate legal proceedings and file formal lawsuits. Support to Wahaha from local governments: “contribution to development” & “protect national brand” Personal attacks: Danone investigated Zong's family, while Wahaha criticised Danone for a negative operating role. Part III. Storyline of the dispute Stage Multiple lawsuits in different countries Danone initiated arbitrations to freeze Wahaha's assets and stop the production. The California court dismissed Danone's lawsuit in 2009, citing forum non conveniens. The British Virgin Islands and Samoan courts issued temporary freezing and takeover orders against Wahaha. [...]

[...] European Journal of Law Reform pp. 614-628. ISSN ● Zheng, M. (2022, September 26). Paternalistic leadership offers lessons for western executives. ● Ma, Z. (2016). Chinese Conflict Management Styles and Negotiation Behaviours: An Empirical Test - Zhenzhong Ma International Journal of Cross Cultural Management. [...]

[...] This was one of the things Wahaha, who needed to surpass Leblanc in the yogurt category at that time, wanted the most. Part V Use open and transparent communication, try to achieve mutual trust Wahaha believes that Danone's investment is not based on long-term strategic considerations, and the Chinese market exists as a tool, these opinions show deep distrust to Danone. At this time, I would have sought open and transparent communication and mediation to resolve these misunderstandings and disputes. [...]

[...] Both sides could have done better if they understood each other more, communicated more, and respected more mutually.” — General Comment If I had been the chief negotiator of Danone Part V Adopt flexible approach to resolving the dispute, like sharing the desired technology to Wahaha I would have adopted a more collaborative and flexible approach to resolving the dispute with Wahaha and sought to find a win-win solution that balanced our interests and needs. For instance, I can offer Zong his desired Yogurt Refrigerating Free Technology. Danone has never provided Wahaha with the frozen free yogurt technology they have long dreamed of. [...]

[...] In this way, more public support and negotiation initiative can be gained in the public opinion battle before the lawsuit and avoid passivity. CONCLUSION Lessons from the case CONCLUSION 1. Differences of Business Approach 2. Contract Revision VS Negotiation 3. Conflict Management Tactics Resources ● Tao, & Hillier, E. (2008). A Tale of Two Companies. China Business Review, 44–48. ● Bu, Qingxiu (2011) Danone v. Wahaha: who laughs last? [...]