Case Study 5 pages

 

survey, question, read and review the information in the exercise provided.

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As you answer the five questions provided, be sure and include  specific and realistic solutions or changes that are needed. Evaluate  the pertinent segments of the case study. Analyze what is working and  what is not working. Support your proposed solutions with solid and  substantive evidence including information from the course textbook,  discussions and the weekly lessons presented thus far in our course.

Assemble the specific strategies that you propose for accomplishing  the solutions. Recommend any further action that should be taken. In  essence, what should be done and who should do it and why should they do  this?

In addition, each paper should be neatly typed, should use  appropriate graphics, and should be approximately 5- pages in length,  not counting title page

In 1996,  Danone, the giant French food company, entered into a joint venture for  bottled water with Hangzhou Wahaha—a leading Chinese milk-based beverage  company originally owned by Hangzhou city government but controlled by a  local entrepreneur Zong Qinghou. Wahaha owned  49 percent of the new venture (in exchange for contributing its  trademark and four out often subsidiaries), with Danone and Peregrine (a  Hong-Kong investment company) holding the rest. Following the 1998  Asian financial crisis, Danone bought out Peregrine’s share and took  control of the JV’s board—but Mr. Zong continued to run the JV  operations. Within just a few years, Wahaha became the leading bottled  water brand in China—but the JV collapsed in 2007 amid unusually bitter  recriminations between the two partners. Danone  accused Wahaha of competing with the JV through its other subsidiaries  controlled by Zong’s family but sharing the same trademark and  distribution network. In turn, Wahaha accused Danone of competing  against the JV by investing in other local beverage companies, and that  Danone’s part-time representatives on the board did not understand the  reality of business in China. Indeed, when Danone attempted to take a  legal action against Zong, it came out that the authorities never  approved the original trademark transfer. After Zong resigned from  the JV, the employees refused to recognize the authority of the new  chairman appointed by Danone. To settle the dispute, Danone sold its  interests in what has become nearly $2 billion business back to Wahaha  at a substantial discount to its market value. 

Questions:

1. Initially  considered only as means of securing market access, alliances today are  an integral part of global strategies in all parts of the value chain.  What alliances are needed to generate new knowledge that deems  increasingly important?

2. Alliances are  mostly transitional entities; therefore, longevity is a poor measure of  success. The aim is not to preserve the alliance at all costs but how to  contribute to the organizations competitive position?

3. There are four  types of alliances: complementary, learning, resource, and competitive.  Alliances are dynamic, migrating from one strategic orientation to  another. Very few alliances remain complementary for long. Alliances  among competitors are increasingly frequent, but they are also the most  complex and why?

4. The approach to  HRM alliance depends largely on the strategic objectives of the  partnership. How can a focus on managing the interfaces with the parent  organization, as well as managing and leading internal stakeholders  inside the alliance itself?

5. The firm’s HRM  skills and reputation are assets when exploring and negotiating  alliances. The greater the expected value from the alliance, the more HR  function support is required, why?

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