If Danone decides to return to the Chinese market, the companies should adhere to the following recommendations. First of all, Danone must comply with local laws and regulations. Only by observing Chinese laws, rules, norms, and standards, as well as following local customs, the multinational corporation will be able to win a specific market and consumer confidence. Secondly, Danone and Wahaha JV should adhere to the concept of making joint decisions. Each of the parties should keep the partner informed of events and announce a viable plan of action. Thirdly, companies should draw up a clear contract regarding the rights, obligations, and opportunities; the representatives of firms should immediately adhere to these points. Most likely, Danone should be blamed for the rupture of the previous agreement since the judge could justify the legal actions on the part of Wahaha JV. Fourthly, Danone should organize a competent product promotion strategy in such a way as not to compete with the products of joint companies in the Chinese market.
In addition, each of these methods has its positive aspects and disadvantages. For example, if Danone follows Chinese rules, norms and laws clearly and unconditionally, it risks violating its French principles. However, joint decisions of Danone and Wahaha JV will only benefit since previous mistakes will be considered and corrected. In addition, new actions will protect each party from potential risks. A well-written contract between the “players” will act the same way. The document will guarantee the fulfillment by the parties of the obligations set out in it, implementing the rights and protection under the law. Danone will probably lose some share from sales if it does not compete with local businesses. However, it won’t let down the trust of Wahaha JV.