Internal And External Competencies Of Danone Company

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IV. RESEOURCES AND CAPABILITIES

In fact, after a deep analysis of the internal and external competencies of DANONE and macro business environment of the industry, we have noticed that DANONE has been associated with the strong level support from the own resources and capabilities which are the driving mechanism to push the company toward to reaching goal and target that are proposed by stakeholder.
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
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It has a great operation chain to support its operation around the world. From the research centers which mostly locate in European countries like France and Netherlands, the research center of DANONE in the business cluster of Paris-Saclay, is the one of the big research nutrition facility of DANONE and have been playing as vital role to participate in the innovation project as part as the research and development division. Moreover, the benefit from the acquisitions of other food companies initially took the shape of research potential as DANONE penetrate deeply through food technology innovation and it could be the part of the product development of DANONE. For the sourcing of raw material, DANONE has also invested to build standard value to deal with local supplier as partnerships. In some countries that DANONE has the huge market share, raw material from suppliers are not enough for the operating production. Vertical integration is option of strategy. DANONE invest into agricultural farming to be own supplier and eliminate the bargain power of supplier. This can help DANONE to save millions of money and security of raw material for sustainable production. Moving to Processing Factory, DANONE equip the own factories with most advance technology machine that can produce the product with high productivity. This can be the critical resource

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