Failures of the Wahaha Joint Venture Company

1. High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy: A. global B. multidomestic C. transnational D. overall cost leadership 2. Foreign direct investment includes the following form of entry strategy: A. licensing B. franchising C. joint ventures D. exporting 3. According to Michael Porter, firms that have experienced intense domestic competition are A. unlikely to have the time or resources to compete abroad. B. most likely to design strategies aimed primarily at the domestic market. C. more likely to design strategies and structures that allow them to successfully compete abroad. D. more likely to demand protection from their governments.

This initial setback with dairy products drove Danone to copy in China the alliance strategy used with great success to expand into Italy and Spain in the 1980s. Danone decided to capitalize successful local businesses rather than build its own businesses from scratch, resulting in a strong focus on joint ventures and acquisitions. Unlike most multinationals, Danone gave these acquired local businesses a great deal of autonomy. The joint ventures and acquired firms continued to sell their products under their own brands. Until late 2002, 80 per cent of Danone’s sales in China were under local brands. Furthermore, Danone let the former executives run the businesses and didn’t get involved much in daily operations. In fact, Danone functioned more like a capital investor, linking its joint ventures through capital investment rather than joint products. This expansion strategy in China worked very well. In 2001, Danone had become one of the largest food concerns in China, with $1.2 billion in sales, more than 50 plants and around 25,000 employees.14 Accounting for 9 per cent of Danone’s international sales in 2003, China became Danone’s third largest

Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

Having the opportunities to expand in other countries creates and allows more opportunities for sales and an increase in performance.

I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

A huge benefit of foreign direct investment is that it massively helps the economic development of a country/business, for Danone this was an essential factor in the expansion to emerging markets such as China, Indonesia and Thailand. A case that demonstrates this is Danone’s large investments to its remaining businesses in Indonesia. Danone's infant formula business in Indonesia includes the SGM and Sari Husada brands and as a result of Danone’s heavy investment they been able target more areas within Indonesia and make available a wider variety of its

Organizations that aspire to be leaders within their industries must consider the global market and expanding outside of their domestic markets. Expanding outside of the domestic market allows access to new customers, resources, and capabilities. Organizations can also gain access to inputs of production at a lower cost. The core competencies of the organization can be further exploited through the expansion. Lower costs can be achieved through economies of scale, experience, and the increase of purchasing power (book). An organization based company would choose to relocate an employee to Canada.

Group Danone SA, a Paris-based multinational corporation (MNC), is a giant in the global dairy product and bottled water markets. The MNC employs roughly 90,000 staff across

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

In this day and age the world is no longer bound by distance; the gap between countries and cultures are shrinking. Most business try attempt to take advantage of this and expand beyond the borders of their homeland. The idea of world market share is lucrative to most businesses not to mention

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

It has a great operation chain to support its operation around the world. From the research centers which mostly locate in European countries like France and Netherlands, the research center of DANONE in the business cluster of Paris-Saclay, is the one of the big research nutrition facility of DANONE and have been playing as vital role to participate in the innovation project as part as the research and development division. Moreover, the benefit from the acquisitions of other food companies initially took the shape of research potential as DANONE penetrate deeply through food technology innovation and it could be the part of the product development of DANONE. For the sourcing of raw material, DANONE has also invested to build standard value to deal with local supplier as partnerships. In some countries that DANONE has the huge market share, raw material from suppliers are not enough for the operating production. Vertical integration is option of strategy. DANONE invest into agricultural farming to be own supplier and eliminate the bargain power of supplier. This can help DANONE to save millions of money and security of raw material for sustainable production. Moving to Processing Factory, DANONE equip the own factories with most advance technology machine that can produce the product with high productivity. This can be the critical resource