Though already the market leader in Indonesia, it was challenged to maintain clear differentiation from imitators and new entrants from other global bottled water brands. This created multiple challenges.
Hire Writer Improvements were observed across all strategic business units SBUs and all geographical areas, and the company even exceeded the objectives set. Danone currently constitutes one of the most dynamic companies in the world in the food-processing sector.
These last few decades, the company has evolved considerably as regards its SBUs, geographical markets and managerial practices. In a highly competitive market Nestle, Kraft Foods, Unilever, etc.
As a result of a refocusing strategy, Danone now manages four SBUs: The geographical diversification of activities enables it to be present in many countries. Since the yearwhich was marked by the setting-up of a joint venture with the Russian company Unimilk, emerging markets account for half of its turnover.
You have just been recruited to work for the strategic development department at the head office of Danone in Paris. Your mission consists in analysing the strategic and managerial choices made by the company and in making recommendations for the upcoming years.
You are notably required to answer the following questions: Analyse the evolution of the activities of Danone. Evaluate the internationalisation strategy followed by the group, and notably the selection of foreign markets, the pace of international expansion and the choice of entry modes.
What are the specific features of the management style adopted by Danone alignment, organisation, culture, information system? Make recommendations concerning future strategic orientations which should enable the group to maintain a profitable growth strategy.
Presentation of Danone Danone is a French company whose head office is located in Paris 17, boulevard Haussmann. The company hasemployees and owns production sites all over the world. Init achieved a turnover of The Boussois company was established in the North of France and produced glass for the building and automotive industries flat glass.
The Souchon-Neuvesel company was located in the Lyon area and manufactured bottles, industrial jars, flasks and glassware container glass. The main objective of this partnership was to reach a critical size in order to stand up to European competition. Activities were focused on flat glass and glass packaging.
From the moment of its creation, the BSN group was managed by Antoine Riboud who was the president and managing director of the family business Souchon-Neuvesel.
To pursue its ambitions in the glass-making industry, the BSN group made a takeover bid on Compagnie de Saint-Gobain inbut this attempted acquisition failed. Inthe BSN group decided to expand into the food-processing industry by taking over three companies which were important clients of its glass packaging activity: As a result of these three operations, it became the French market leader in beer and mineral waters.
Antoine Riboud and Daniel Carasso, the directors of the two companies, shared the ambition of becoming one of the world leaders in the food-processing industry. Gervais Danone, the leading French food-processing group The Gervais Danone group resulted from the merger, inof the Gervais and Danone companies.
The Gervais company was created in the 19th century and produced a wide range of fresh cheeses. For this purpose, he relied on the works of the Pasteur Institute, and notably those of Elie Metchnikoff — who had won the Nobel medicine prize in — and on the manufacturing methods used in the Balkans.
Yogurts, which were sold in pharmacies, were intended to fight intestinal infections in children.About Case Study Danone is French-based food and beverage multinational headed by Frank Riboud as CEO, during his 16 years tenure he transformed Danone into an international supplier of dairy products, baby foods, health foods and bottled water.
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This report on Yakult and Activia forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors.
Box 1: Gervais Danone, the leading French food-processing group The Gervais Danone group resulted from the merger, in , of the Gervais and Danone companies. The Gervais company was created in the 19th century and produced a wide range of fresh cheeses.