Leadership and Decision Making: Analysis of a Joint Venture Conflict

This case study examines the conflict arising from a joint venture between Danone and Wahaha, highlighting the impact of cultural and national differences on decision-making and organizational dynamics. The analysis identifies the root causes of the conflict, including differing perceptions of roles and responsibilities, with Wahaha feeling suppressed by Danone. The study explores how cultural factors, specifically the differences between a US-based company (Danone) and a Chinese partner (Wahaha), exacerbated the conflict. The assignment further investigates leadership strategies for conflict resolution, proposing approaches to mitigate disputes and maintain the integrity of the joint venture, including discussion and legal actions. References to academic sources support the analysis.

Running head: ANALYSIS OF DECISION MAKING APPROACH
ANALYSIS OF DECISION MAKING APPROACH
Name of the Student
Name of the University
Author Note:

1DECISION MAKING APPROACH
What was the problem in the joint venture that triggered the conflict between
the two companies?
Answer:
After analyzing the case scenario of Denone’s Wrangle with Wahaha it is identified that
due to some cultural and national difference these two organization has faced a huge conflict
after creating a joint venture. Wahaha has mentioned that their company was feeling suppressed
by Deanone however, they were the partner of the joint venture (Benfatti 2018).
What were the differences of each company’s understanding of their own
respective roles and responsibilities in this venture?
Answer:
In the joint venture Wahaha own 49% of the share and Jin Jia holds the share of 51
percent. After a certain time Denone who was the 50% share holders of Jin Jia, has owned the
entire share of the Jin Jia and become 51% share holders of the venture. Here the primary
conflict has been developed in which it is observed that Wahaha has been suppressed by the
Denone by thinking that they are low share holder and Denone can rule the venture. However,
after sometime the Wahaha realized that they are being dominated by Denone (Raskovic 2017).
Did any aspect of organizational cultural or national culture affect this
perspective?
Answer:
After analyzing the nominated case study it can be stated that in this case scenario there is
a huge significance of cultural and national difference as Denone is basically a US based

2DECISION MAKING APPROACH
company how has initiated their business china by collaborating with Wahaha and after a few
year it has become one of the largest shareholders which has created that conflict between these
two organization (Benfatti 2018).
As a leader, what are some ways you can handle conflict when it arises?
Answer:
Being a leader I would have decided to conduct a discussion on the same topic where I
would have tried to mitigate these problems with a settlement or else I would have proceed for
legal actions in order to maintain the rules and regulations of the joint venture.

3DECISION MAKING APPROACH
Reference:
Benfatti, B. (2018). The Board of Directors in limited companies and joint ventures in Italy and
China: The Danone-Wahaha dispute (Bachelor's thesis, Università Ca'Foscari Venezia).
Raskovic, M. (2017). Entry strategies for the Chinese market: Is the joint venture dead?.
In Understanding a Changing China (pp. 129-142). Routledge.