Negotiation Strategy

Read the following scenario about ‘The bidding for NatWest’, and then consider the questions using the course concepts and in the context of Inter-Organisational, Intra-Organisational, Inter-Group and Intrapersonal Negotiation and communication strategies. You can draw on any knowledge gain from other ‘International Negotiation and Sales Management’ courses.

Case 3: The Assignment – ‘The Danone, Wahaha Joint Venture Dispute’

Part 1. The real story behind Wahaha’s conflict with Danone – ’national capital’ or just capital?
Saturday, 24 November 2007.
Chinaworker examines the ongoing legal dispute between Wahaha, China’s largest drinks maker, over its stormy partnership with Groupe Danone of France. Chen Lizhi, chinaworker.info

From April to July this year, the dispute between Qinghou Zong (CEO of Wahaha) and Danone China (subsidiary of Danone, the world’s largest dairy company) for control of the Wahaha brand in the Chinese market became a public brawl. The main issue is that Danone China demands the sole rights to the Wahaha brand, based on its previous contract with Zong. However, Zong insists he was duped by Danone at that time and therefore argues the contract is invalid.

With Danone aggressively pressing its exclusive rights to the brand, Zong finally took up the motto of defending the ’national interest’ to attract public support. He claimed he was misled by overseas capital, and asked the Chinese people to support him. In a short time he received massive support from sections of the media, the nationalist youth, and some sections of the masses.

The Palace of Yuan Ming Yuan [in Beijing] was burnt by an Anglo-French army over 150 years ago. The Eight-Nation Alliance invaded China over 100 years ago (to ”suppress” the Boxer Rebellion in 1901). It is over 50 years since Mao, in 1949, claimed the Chinese people had ”stood up”. But now the French have attacked the interests of our “Middle Kingdom”, and therefore the call has gone up to...