Danonne Strategic Paper

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Danone Group|
Strategic Management Project|
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* DiaaGalal.
* Ola Abd el Moez
* Ola Ahmed.
* Ibrahim Fikry.
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Outline
* Introduction…………………………………………………………………….. Page * Mission Statement…………………………………………………………….Page * External Assessment………………………………………………………….Page * Internal Assessment………………………………………………………… Page * Objectives………………………………………………………………………. Page * SWOT Analysis…………………………………………………………………. Page

Introduction

Groupe Dandone is a French multinational Company based in Paris. The original company bearing the corporate name was founded in 1919 in Barcelona as a small factory producing yoghurt. Ten years later, the company moved from Spain to France, and the first French factory was built. By 2007, it swapped its world number 2 position as producer of cereals and biscuits. They have sold the biscuits division to Kraft Foods. The Group has a worldwide international presence. Danone is a world leader in dairy products and bottled water.

Vision

“The DANONE’s vision is to be the leading health, wellness, and Nutrition Company in the world”

The Business Mission

Mission statement

Danone intention is to be the first choice of customers when it comes to food products by providing premium quality products in terms of benefits, tastes, and nutrition by applying the latest technology and developing research to build tomorrow’s innovation in brining better health and taste. Our people are the most important asset; we hire high quality staff besides the novice people from all around the world and develop talented ones; we help bring the best in them. The customer is everything; we must stay close to our customers and make sure we are satisfying their needs and wants. We believe that we have to maintain a strong friendly thoughtful place toward the environment and the community we live in.

The External Assessment

Economic Forces
1- Local markets vary greatly from their disposable income per capita 2- Inflation rates
3- Consumption patterns
4- Unemployment trends
5- Import/Export factors
6- Demand shifts for goods/services
7- Income differences by region/customer
8- Different levels of income
9- Changes in Display
10- Foreign currency exchange rates
11- Price fluctuations of raw materials
Social, Cultural, Demographic, and Natural Environment Forces Demographic factors:
12- Population trends.
13- Age structure.
14- Birth rate.
15- Population growth rate.
16- Education.
17- Income level.
Social factors:
18- Social Class.
19- Advertising.
20- Consumer tastes.
21- Consumer Shopping Habits and Mobility.
22- Characteristics of consumers.
23- Growing demand for health and wellness products.
Environmental Factors
24- Weather and Climate.
25- Climate change.
26- Diseases.
27- Pollution: Water/ Air pollution.
Political, Governmental, and Legal Forces
Political Factors
28- Country relations with other countries.
29- Government and country's stability.
30- Disturbance and insecurity.
31- Lack of trust in the Government.
32- Resource scarcity.
Legal Factors
33- Import and export regulations
34- Changes in laws, such as tax laws
35- Foreign trade, duties, tariff laws.

Technological Forces
36- The Internet.
37- The e-commerce.
38- Information technology (IT).
39- Spending on research.
40- Fast technological transfer.

Competitive Analysis: Porter’s Five-Forces Model
Porter identified five factors that act together to determine the nature of competition within an industry.  These are the: * Threat of new entrants to a market
* Bargaining power of suppliers
* Bargaining power of customers (“buyers”)
* Threat of substitute products
* Degree of competitive rivalry

Let’s look at each one of the five forces in a little more detail to explain how...
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