When company wahaha attempted to merge with company danone, the transfer of company wahaha’s brand created tension in the transaction, ultimately failing (luthans, 2018).

Please add 01 comment (paragraph) foe Essay 01 , and 01 comment (paragraph) for Essay 02 with references :
Essay 01

Danone’s Wrangle with Wahaha
The problem in the joint venture was the disagreements between the two companies, which caused the conflicts. The first problem is a misunderstanding regarding the investments that both corporations withdrew from each other rather than making direct investments in the other company. Due to the unjust allocation of shares between the two companies, a quarrel erupted between them. They started to feel misled by the other about their intentions regarding the partnership. When company Wahaha attempted to merge with company Danone, the transfer of company Wahaha’s brand created tension in the transaction, ultimately failing (Luthans, 2018). Wahaha did not have sufficient comprehension of the legal ramifications that were meant to be included in the plan. Additionally, Wahaha used its brand, an asset, in a way that led to conflicts.
The two companies had different perspectives on their roles, leading them to disagree on who should do what in the joint venture. Instead of concentrating on the company as a whole, Wahaha prioritized the promotion of its name (Luthans, 2018). There was a contradiction in the general public’s grasp of who was responsible for what in the effort to boost partnership profits. The Wahaha company broke the partnership rules that the law required them to follow.
Before their merger, the two companies were created with distinct organizational cultures, which impacted national and organizational cultures. Wahaha was established in the United States and Danone in China. Consequently, there were substantial differences in the views of the two companies (Choromides, 2018). The two companies had differences in culture and beliefs where each of them believed that its culture was superior to that of the other and no one should be above them.
As a leader, the most significant thing I can do to keep the peace is to handle problems and conflicts appropriately. It is crucial to avoid unfairness since it might lead to increased conflict among the parties involved (Bucurean, 2018). As a leader, you should judge appropriately by listening to the views of all sides and comprehending the underlying reason for the problem. When rendering judgment, you should make an effort to remain impartial, recognize the differences between the two sides, and show gratitude to each of them for their contributions toward finding a solution. Additionally, the leader might counsel them on the need to maintain respect for the opinions expressed by all party members.
Reference
Luthans, F., & Doh, J. P. (2018). International management: Culture, strategy, and behavior. McGraw-HillReview Chapters 6 & 7 in International Management: Culture, Strategy, and Behavior
Bucurean, M. (2018). The effects of moods and emotions on decision making process – A qualitative study. Annals of the University of Oradea: Economic Science, 28(1), 423-429.
Choromides, C. (2018). e-Negotiations networking and cross-cultural business transactions. International Journal of Entrepreneurial Behaviour & Research, 24(4), 933-934.
Essay 02

Danone’s Wrangle with Wahaha
The company Danone was initially established in 1966 as a glass manufacturing company. Upon numerous setbacks from the industry, the company refocused its business on beverage production and acquired Kroonenberg and European breweries companies (Doh & Luthans, 2018). In 1980 the company initiated its expansion strategies through joint ventures, acquisitions, takeovers partnerships, and cross-sharing arrangements. By 1989 Danone had sped up its international expansions with over forty investments in Asia, Africa, Central Europe, the Middle East, and Latin America.
The company entered China in 1987 and set up Danone Yoghurt manufacturing; however, this product did not perform as well as expected due to the Chinese market’s peculiarities. Danone realized that its products were expensive and unaffordable to ordinary citizens; moreover, only a few consumers had refrigerators to facilitate fresh dairy product storage. They decided to capitalize on successful local brands, which facilitated substantial acquisitions and joint ventures (Hennart, 2020). Danone initiated its cooperation with Wahaha in 1996. Hangzhou Wahaha group was a beverage company doing well in the Chinese market. The company feared losing its competitiveness with international brands; additionally, it wanted to expand their market share but lacked the necessary funds. Danone lacked the customer base and sought to benefit from the corporation.
The Problem that Caused Conflicts in the Venture
The primary cause of concern that resulted in the companies falling out of favor was the diversities in perceptions and attitudes of the joint partnership operation and formation, which set out each company to have different business cultures and expectations as to how the joint ventures would conduct their business. The structure and control of the joint Venture presented the central issue; for example, Wahaha expected that their 49 percent shares meant complete control as the remaining 51 percent was distributed among Baifu and Danone (Wahaha Group, 2008). The absorption of Baifu’s shares by Danone, resulting in a gain of 51 percent, meant effective control for Danaon, which Wahaha did not receive well as they saw this as a takeover.
The management structure was another source of conflict. While Wahaha was offered effective control over operations as the local expert, Danone could only exercise its involvement through a board of directors (Doh & Luthans, 2018). The action resulted in dissatisfaction as Danone felt they knew so little of their Venture, although they were dedicating many resources.
The Differences in Each Company’s Respective Roles and Responsibilities understanding in this Venture
Wahaha owned 49 percent of the shares, the majority share percentage, as the remaining 51 percent was distributed between Danone and Baifu. Wahaha was very confident in this decision, resulting in their agreement to form the Venture (Doh & Luthans, 2018).. However, Baifu sold its shares to Danone, enabling them to fully own the joint Venture. The Wahaha trademark was also transferred under Danone establishing full ownership of the Joint Venture.
Impact Organizational Cultural Perspectives
Globalization has resulted in the transfer of ideas and created numerous opportunities for multinational companies. However, diverse cultural practices and perspectives have challenged global and business leaders while attempting to develop a rapport, thus minimizing engagement (Hennart). In China, Gift giving is considered essential in building solid relationships between the government and businesses; however, in the United States, it is considered corrupt and morally wrong. Negative stereotypes have also resulted in Ethnocentrism which results in conflicts. To thrive in international markets, global business leaders should be aware of organizations’ behavioral attitudes, cultural values, and dynamics.
Some Ways to Handle Conflict
Culturally sensitive leadership that is strong can help reduce conflicts and accelerate diversity. Global business leaders can cultivate a culture where individuals of all races, ethnicity, gender, sexual orientation, and age are respected, and their views are valued (Rahman,2018). Multinational business people should prioritize Cultural intelligence and openness to be willing to receive other people’s ideas to facilitate change.
References
Doh, J., & Luthans, F. (2018). International management: Culture, strategy, and behavior (10th ed.). McGraw-Hill Education.
Hennart, J. (2020). More than intent: A bundling model of MNE–SME interactions. Journal of International Business Studies, 51(7), 1176-1194. https://doi.org/10.1057/s41267-020-00352-8
Rahman, A. (2018). Leadership for multicultural teams: The challenges in managing cross-cultural conflicts
Wahaha Group. (2008). Danone Encounters Continuous Frustration in China and a Murky Future Due to Unsuccessful Litigations. Cision. https://en.prnasia.com/releases/global/Danone_Encounters_Continuous_Frustration_in_China_and_a_Murky_Future_Due_to_Unsuccessful_Litigations-13651.shtml