Failures of the Wahaha Joint Venture Company

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Failures of the Wahaha joint venture company Introduction According to(Dunning & Lundan, 2008), there are several seeking behaviors that induced organizations to expand internationally. An organization seeks to gain competitive advantage over its local competitors by relocating its production operations overseas to its subsidiary companies to access lower cost and higher quality resources and also compete successfully in the host country by transferring the latest technology, expertise and knowledge. An organization that desires to protect its existing market and acquire a new market will seek for market development. Strategic asset and capability seekers, develop their portfolio of assets in order to be sustainable and competitive while efficiency seekers attempt to secure the benefit of consumer diverse preferences and supply effectiveness. Regarding international business, foreign direct investment is crucial as it supplies the home country or the local firm new markets opportunities, reduced cost of production, introduction of new technology, products, skills and funding. This investment initiates the economic growth of the receiving host country or the receiving foreign firm through the benefit of new capital, technology, products, organizational practices and management competences. Despite these benefits, in September 2009, one of the world's largest multinational food organizations from France, Groupe Danone (Danone) concluded its Chinese foreign direct

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