Analyzing The Problem Of Control Of The Joint Venture

In April 2007, the products which was produced by Non-joint venture company of Wahaha Group was not approved by the Board of Directors of Joint venture, so Group Danone selfishly used the reason which Wahaha trademark against the business contract that require to purchase the 51% stock of one branch of Wahaha Group—Non-joint venture company, in order to keep the Non-joint venture company of Wahaha Group under control of himself. This request was opposed by the chairman Zong Qinghou of Wahaha Group, and that caused a big controversy between Group Danone and Wahahah Group. Look on the surface, the controversy between Wahaha Goup and Goup Danone is the conflict of national brand and foreign brand, but in substance it was the competition that both side involved Joint ventures for the conformity of Joint ventures.Joint ventures is the mainly form of our country recommend the foreign direct investment. Because the conformity of Joint ventures directly determine their double respective benefit and realization degree of strategic objectives, determine the words right to allocation of enterprise value, so Joint ventures is exceptionally fierce for the contention of conformity. Although equity amount is not directly correspond with the conformity size, by the equity participation way to obtain the conformity of Joint ventures is still the most main measure currently in investors, and also is the basic to achieve the other control way. Because TNC often has the advantages in aspect of capital, technology, personnel and so on, for this Non-equity control, it could obtain actually conformity when the others have minority or coordinate equity. But when the others possess the conformity, it could steady the control position.In more than a decade of Group Danone work together with Wahaha Group, they never give up the contention for company conformity. Although the struggle between Group Danone and Wahaha Group end with reconciliation, it left a profound lesson for us. This article analysis the case of competition between Group Danone and Wahaha Group, Explore current Chinese show the shortage when we face the problem of conformity competition in Joint venture, and put forward the corresponding complete suggestions.This article is divided into four parts:The first part is the introduction. It mainly summarize the research background, Significance, research Status, article structure and so on. The second part is the basic theory of conformity of Joint ventures. This part has the Fundamental position in the treatise part as the first level research. The third part is analysis the conformity problem which involved in the case of Group Danone and Wahaha Group. With the ideal that found the problem and then deal the problem to analysis the case of Group Danone and Wahaha Group, mainly reveal the problem that exist in the process of Joint venture of Chinese company and foreign company, in order to propose the relational suggestion. Sum up the dissertation of the first three parts to obtain the fourth part of this article, about the reflection of the conformity problem with Joint ventures. This part is the conclusion of the whole article.