Business Management Danone

Topics: Groupe Danone, Evian, SWOT analysis Pages: 21 (5189 words) Published: March 31, 2013


literature review4
swot analysis4
external factors4
organizational structures5
hofstede’s theory5
cultural elements5
danone’s analysis7
I- strategic analysis7
1- DANONE’s industry7
2- swot analysis8
3- exploring new opportunities 11
II- organizational analysis12
1- external factors12
2- DANONE’s organizational strucure13
3- home country’s culture impact15
4- DANONE’s motivational system16
conclusion and recommendations 18


We have chosen the group DANONE because it is a world-famous leading French group, which is often recognised for its management leadership.

DANONE is a food-products multinational corporation based in Paris. It is the world leader in fresh dairy products, 2nd in bottled water and baby food and European leader in clinical nutrition.

Being a leader in these 4 segments corresponding to the heavy trends of consumption and deriving more than 50% of its turnover from developing countries have helped the Group to secure a 6,9 % growth in 2010 despite the down turn of world economy.

It is obvious that to be able to be successful on these highly competitive markets, a company owes to apply a good strategy. The group is also supported by an effective communication and by a strong involvement in Research and development where they spend 1% of their global turn over.

But above all these, with its fast development in emerging countries often through joint ventures and its switch in 2007 of 40% of its activities from biscuits to baby and clinical food, what has been critical to insure its success through these drastic changes has been the management of the group under the strong leadership of Franck Riboud who succeeded, as chairman and CEO of DANONE, to his father Antoine in 1996.

Through this study, we shall show how DANONE possesses a real identity very present in its management and organization and that this cultural model, initiated since the early 70’s by Antoine Riboud and enhanced by Frank Riboud, has been key to the Group success.


* SWOT analysis

“A strategic planning tool that includes external and internal factors and is utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort – positive and negative – are identified and addressed.”(Tatum, 2010)

The SWOT’s process involves four areas of consideration: * Strengths: characteristics of the business or team that give it an advantage over others in the industry. * Weaknesses: are characteristics that place the firm at a disadvantage relative to others. * Opportunities: external chances to make greater sales or profits in the environment. * Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

* External factors

According to David Buchanan and Andrzej Huczynski (5th edition), external factors of a business organization include:

* Macro-environment factors (PESTLE analysis): “identifying the Political, Economic, Social, Technological, Legal and Ecological factors affecting an organization.”

* Micro-environment factors...
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