Groupe Danone SA and 11-year-old joint venture partner Hangzhou Wahaha Group ended their
public battle regarding a year-long trademark dispute in December. CD brought you all the ups and downs of the Chinese-French JV, which established itself as a major player in the Chinese market. Professor Stewart Hamilton and research associate Jinxuan (Ann) Zhang of business school IMD suggest the Wahaha JV troubles could have been avoided if they followed these 10 principles:
- Think long term from the beginning
- Seek a valid and strong legal basis
- Define your role -- "passive investor" or "active majority owner"
- Treat others as you would like to be treated
- Share both risks and growth
- Understand and respond to political, economic, cultural and social changes
- Ensure you have a legitimate claim
- Be sensitive when handling public relations
- Think about the consequences before taking legal action
- Endeavor to understand both the Chinese and the international perspectives
Read on for
a derivation of these guidelines. -
Baz Hiralal
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Cuong Viet Do
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