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Lessons for Joint Ventures in China

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Lessons for Joint Ventures in China
Lessons for Joint Ventures in China. Danone and Wahaha Case Study.

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Lessons for Joint Ventures in China
Danone and Wahaha Case Study

8/17/2012

MSc International Management programme Management across Cultures Prague College

Lessons for Joint Ventures in China. Danone and Wahaha Case Study.

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Contents
1. 2. 3. Objectives and scope. ........................................................................................................................... 3 Joint Venture: definition and relational factors.................................................................................... 4 Comparison of French & Chinese cultural models. Hofstede’s model ................................................. 5

4. Short introduction to Chinese culture. The social and historical description of Chinese culture and Confucianism................................................................................................................................................. 8 5. 6. 7. 8. Case study ............................................................................................................................................. 9 Lesson for the future........................................................................................................................... 12 Conclusions ......................................................................................................................................... 13 Bibliography ........................................................................................................................................ 14

Lessons for Joint Ventures in China. Danone and Wahaha Case Study.

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1. Objectives and scope.
The aim of this paper is to investigate and analyze the lessons for joint venture in China.

First, the author decided to define joint ventures and analyze relational factors. The next step was to compare Chinese and French culture using national context provided by


Bibliography: Andersson, L. (2009) Joint ventures between Swedish & Chinese firms -How to make the marriage work? Ahlstrom, D. and Bruton, G.D. (2010) International Management. Strategy and Culture in the Emerging World. South-Western, Cengage Learning Bosshart, S. Luedi, T. And Wang E. (2010) Past Lessons for China’s new joint ventures. McKinsey Quarterly. Available at http://www.mckinseychina.com/wpcontent/uploads/2010/12/pale10.pdf accessed on 16.05.2012 Child, J. (2005) Organization. Contemporary Principles and Practice. 1 Edition, Blackwell Publishing Fletcher R., and Fang T. (2006) Assessing the impact of culture on relationship creation and network formation in emerging Asian markets. European Journal of Marketing, 40(3/4), pp. 430– 446 Fukuyama, F. (1995) Trust: Social Virtues and Creation of Prosperity. Copyright 1996 Reed Business Information, Inc Harrison, A. (2010) Business Environment in a global context. 1st Edition Oxford University Press Hamilton, S., Zhang, J. A. (2012) Doing business in China: Avoiding the Pitfalls. Palgrave Macmillan Hoeck, M. (2008) Cooperation and Technological Endowment in International Joint Ventures: German Industrial Firms in China. Michael Hoeck and Koelner Wissenschaftsverlag Albers, Peters & Reihlen GbR Koeln Hofstede, G. (2003) What are Hofstede 's five Cultural Dimensions?. Available at: http://www.geert-hofstede.com/ (Accessed on 14 June 2012). Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, Unit 2. Available at http://scholarworks.gvsu.edu/orpc/vol2/iss1/8 accessed on 17.06.2012 Hofstede, G., Hofstede, G. J., Minkov, M. and Vinken, H. (2008) Values Survey Module 2008. Internet publication. http://feweb.uvt.nl/center/hofstede/index.htm. Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 15 Khorassani, J.M., Al-Karaghouli, W., Ayios, A. (2011) Antecedents of trust in international joint ventures (IJVS) Performance in developing countries. A review of empirical evidence. European, Mediterranean and Middle Eastern Conference on Information Systems 2011, Athens, Greece. Available at http://www.iseing.org/emcis/EMCISWebsite/EMCIS2011%20Proceedings/MOIS9.pdf Li M., Zhang, Y and Jing R. (2008) Does Ownership and Culture Matter to Joint Venture Success? Vol. 4 No. 1 2008 International Management Review. Available at http://www.usimr.org/IMR-1-2008/v4n108-art9.pdf Peng, M. W. (2009) Global Strategy. 2nd Edition. South-Western Cengage Learning Selmer, J. (1998) Management in China. Cross-cultural issues.1st Edition. Routledge Advances in Asia-Pacific Business. Wilson, J. and Brennen, R. Influence of Relational Factors on International Joint Venture Performance (paper 136). Available at http://www.impgroup.org/uploads/papers/5965.pdf Wilson, Jonathan and Brennan, Ross (2009) Relational factors in UK-Chinese international joint ventures. European business review. , 21 (2). pp. 159-171. ISSN 0955-534X Yan, Y.(2000) International Joint Ventures in China. Ownership, Control and Performance. Palgrave MacMillan Zhang, P. and Van Deusen, Ch. (2010) French Danone and Chinese Wahaha: Yet another example of an unsuccessful international joint venture. International Business: Research, Teaching and Practice 2010 4 (1); Available at http://wenku.baidu.com/view/8e94184bc850ad02de804133.html accessed on 2012.05.01 Zheng, X and Larimo, J. (2010) Identifying key success factors for international joint ventures in China: a foreign parent perspective from Finnish firms. 6th International Scientific Conference may 13-14, 2010, Vilnius, Lithania, Business and Mangement. 2010. Selected papers. Vilnius, 2010. Available at http://leidykla.vgtu.lt/conferences/BUS_AND_MANA_2010/Finance_Engineering/294301_Zheng_Larimo.pdf accessed on 2012.05.01 Internet resources: Hofstede, G., Hofstede, G. J., Minkov, M., & Vinken, H. (2008). Announcing a new version of the Values Survey Module: the VSM 08. Available at http://www.sjdm.org/dmidi/Values%20Survey%20Module.html Accessed on 2012.06.16 Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 16 http://geert-hofstede.com/china.html http://geert-hofstede.international-business-center.com/ http://en.wikipedia.org/wiki/Wahaha_Joint_Venture_Company http://www.china-briefing.com/news/2009/11/04/china-joint-ventures-understanding-theintangibles.html
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