Case Study of Danone

3.1.10. Management and Leadership ................................................................................. 8 Context Analysis ............................................................................................................ 8 Competitors and Industry Analysis .............................................................................. 11 Key Competitors ................................................................................................... 13 Market segmentation and target market group ..................................................... 16 Customer Analysis ....................................................................................................... 14 Collaborators ................................................................................................................ 17

As of 2007, Danone, the French multinational food company, was in a fierce battle with China-based Wahaha Group (the largest beverage producer in China) to win control of their joint ventures (JVs) in China. The fight is reported to have started in 2005 when Danone uncovered some unusual financial figures at the JVs, but this did not become known to the public until 2007, when Danone and Wahaha Group failed to resolve their disputes on the selling price of Wahaha-related non-joint ventures (non-JVs). The quarrel between Danone and Wahaha Group has escalated. It involves disputes on brands, as well as on perceived unequal commitments to the JVs. Lawsuits

I reviewed the file thoroughly before I came up with the offer. So let me explain:

According to The History of Danone (2009), Isaac Carasso was inspired by the research of Elie Metchnikof, and in 1919 he began using ferments from the Pasteur Institute to manufacture yogurts to sell on prescription to pharmacies in Barcelona, Spain. Carasso began this work, because he saw an opportunity to help the number of children suffering from intestinal disorders, due the lack of healthy nutrition following the First World War. By 1929, Daniel Carasso, Isaac’s son, continued to grow the company by launching the company Danone in Paris. Business for Danone continued to prosper in Paris until 1941, when Daniel

The environment affects an individual’s behavior. The social, behavioral perspective forms the best approach with which to understand Dan’s situation. People develop the ability to solve problems and approach situations through learning, from either other people’s experiences, or their experiences (Hutchison, 2015). Dan, at the tender age of seven, watched his parents’ divorce. As the case would be for any other child his age; he must have understood that the divorce meant that he would no longer live with both of his parents. At the age of seven, children are, more often than not, likely to make many cognitive errors which, if not corrected in the future, could have adverse effects on their lives.

Leprosy or Hansen’s disease can be treated by a multi-drug therapy, which consists of three drug prescriptions of Dapsone, Rifampicin, and Clofazimine, for at least 24 months. Dapsone is given in 100 mg tablets, Rifampicin 10 mg tablets, and 50mg tablets of Clofazimine.

Danone felt that the U.S. was an emerging market for yogurt and hence, Dannon focused its marketing strategy on increasing the yogurt consumption and expanding the category. Dannon had to follow Danone and maintain a strong commitment to CSR. At Danone, local decision making and was trusted and encouraged. Also, Dannon had a responsibility to its parent company and was accountable for a set of deliverables and data for reporting purposes. It believed in collaborative decision making and therefore major strategy

Digicel is a mobile phone network provider operating in 33 markets across the Caribbean, Central America, and Oceania regions. The company is owned by the Irish billionaire Denis O'Brien, is incorporated in Bermuda, and based in Jamaica. It has about 13 million wireless users. (Rouse, 2006)

Digoxin toxicity. Digoxin has a narrow therapeutic index and chronic toxicity is more likely in the elderly and those with renal impairment. Since Mr Buchanan is 75 years old, he may already have some form of renal impairment and therefore is at a higher risk of developing toxic serums levels if continually taking Digoxin (Australian Medicines Handbook, 2016 and Nickson, 2014). Digoxin toxicity can be caused by prolonged use, an overdose or a general increase in the current dose (Australian Medicines Handbook, 2016). If Mr Buchanan is taking digoxin for an extended amount of time, he may build up a tolerance to its effects due to being consistently exposed to the drug (Australian Medicines Handbook, 2016). This is significant risk

Which Countries are involved in this case? Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact management’s decision to enter the market?

The parent company Danone, as part of its social activity teaches and educates Corporate Social Responsibility initiative across its subsidiary. Internal and external communication program help blend corporate global culture and shapes the best practices in the U.S where Dannon operates. Dannon views U.S market as a growth oriented with per person consumption, which is much less than other part of Europe. Dannon executives identified this opportunity as a high growth area and used its Corporate Social Responsibility programs in its communication with customers. According to Arevalo, & Fallon (2008), corporate citizenship initiative is to embrace, support, and carryout values in the areas of human development and environment within the business

In 1993 the two companies decided to build a joint venture called Eli Lilly Ranbaxy JV that had a common business strategy and the intention to focus on high ethical standards, technology, and innovation. The JV focused directly on the Indian market since Ranbaxy had an existing relationship with the Indian Pharmaceutical Market they were able to continue exploring potential clients and business relationships. Ranbaxy alone was a very well-known pharmaceutical company that had a large distribution network and was able to easily obtain government approvals, licenses, distribution and supplies. The advantages to this joint venture are the work ethic by both company’s senior management teams as well as the previous relationships that

Through a joint venture franchising structure with fairly rigorous contractual stipulations Michel’s central administration were able to expand the business to China “on a shoestring” while still maintaining “arms length control” of how the Chinese business was run. The licensee and joint venture partner bore the financial risks, while risks of damage to the brand that a failed venture would cause were deemed negligible due to China being so far away from the Australian market.

However, Danone may need to consider extending its concept deeper, richer or wider to determine whether the benefits may be higher than they currently are (Edmondson, et al., 2008).

DANONE is one of the largest multinational companies in the food and beverage industry. By the end of 2016, counting from the consolidated companies to the sub-divisions in more than 130 countries, DANONE has 99,187 people as full-time employees (Danone, 2016). Base on the geographical area, majority of the employees, they work in European countries