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Danone Case

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Submitted By pariswilliams92
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Paris Williams
Danone Case
What’s Danone? Groupe Danone is a public French multinational corporation. It is known for fresh dairy products, bottled water, and medical nutrition.
Subsidiaries: Many of Danone’s subsidiaries are companies that manufacture specific products for specific markets. For example, The Dannon Company is a subsidiary of Groupe Danone operating in the United States primarily under the brand name Dannon. Affiliates: Multiple companies’ supply components go into the final goods sold under Danone Groupe brand names. These companies have a presence in the industry already, make packaging materials, and/or produce raw dairy products. In the case study, Danone formed an affiliation with Wahaha Group to get a better foothold in the expanding Chinese market.
Cultural: In Spain and Italy Danone established relationships with local suppliers. In Eastern Europe Danone took over local suppliers to exploit growing demand for fresh dairy products. Fewer Chinese citizens have refrigerators to hold fresh dairy products. Administrative Danone rarely sends executives (or resources) to their joint ventures, but allows them to be autonomous. Danone and Wahaha (Chinese) joint venture Danone has been accused of trying to become a monopoly in the Chinese market.
Human Resources The Danone Way Programme: Embodies Danone’s commitment to combining business success and attention to people and the community Human resource policies represent a dual commitment to success and social progress Partnerships and joint ventures allow Danone to access new markets and capitalize on consumer trends. Partnership with subsidiary Stonyfield to create Dannon Oikos Greek Yogurt. Acquiring local businesses and its joint ventures with Wahaha Group gained Danone entrance into the Chinese market.
Organization Structure: Danone tailored its strategic plan to meet the needs of the local culture and consumers through semi-autonomous partners and subsidiaries. Geocentric: Danone now has a more global view and is expanding into emerging markets (Russia, Argentina, Mexico, Indonesia, China) with equal power sharing between headquarters and subsidiaries. Their international expansion: Danone uses a “low-cost, low-risk […] rapid market entry approach.” Over 80% of Danone’s growth is from the firm’s emerging markets (Russia, Argentina, Mexico, Indonesia, China). Danone’s core business in Europe (fresh dairy products) has been suffering due to the downturn in the European economy.
Foreign Direct Investment Resource Seeking: Danone hires local workers and scientists to exploit their expertise and cultural knowledge. Market-seeking: Danone is exploring markets in underdeveloped countries. Emerging economies such as Latin America, Asia and Middle East contribute to half of Danone’s total revenue. Strategic Asset -seeking: Danone engages in joint ventures in its host regions. Danone has also merged with foreign rivals to strengthen joint capabilities (i.e. North American Greek yogurt products).…...

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