Danone Strategy
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Danone:
A world leader in the food-processing industry
This case study was prepared in close collaboration with Danone’s General Management. The authors wish to thank Mr Laurent SACCHI, Deputy Director to the Presidency, and Ms Charlotte PASTERNAK, responsible for press relationships and external communication, for their valuable contribution to the elaboration of the case study.
© CCMP 2011
Authors: Sylvie HERTRICH, Michel KALIKA and Ulrike MAYRHOFER
Initiating institutions: EM Strasbourg Business School, University of Strasbourg; IAE Lyon, Jean Moulin Lyon 3 University
CONTENTS
I. Presentation of Danone 4
A. Creation of the group and evolution of activities 4
B. Strategic business units in 2010 5
II. Danone’s internationalisation strategy 7
A. From the capture of the European market... 7
B. …to a global expansion strategy 8
III. Danone’s management 10
A. Global management 10
B. Humanistic management 10
In 2010, Danone maintained impressive results; it achieved a turnover of 17.01 billion Euros (+6.9% in relation to 2009) and a net income of 2.03 billion Euros (+33.7% in relation to 2009). Improvements were observed across all strategic business units (SBUs) and all geographical areas, and the company even exceeded the objectives set.
Danone currently constitutes one of the most dynamic companies in the world in the food-processing sector. These last few decades, the company has evolved considerably as regards its SBUs, geographical markets and managerial practices. In a highly competitive market (Nestlé, Kraft Foods, Unilever, etc.), the company was able to adapt in order to pursue a growth strategy and stand out among the world leaders in its industry sector.
As a result of a refocusing strategy, Danone now manages four SBUs: (1) Fresh Dairy Products, (2) Bottled Waters, (3) Infant Nutrition and (4) Medical Nutrition. The geographical diversification of activities enables it to be present in many
Danone:
A world leader in the food-processing industry
This case study was prepared in close collaboration with Danone’s General Management. The authors wish to thank Mr Laurent SACCHI, Deputy Director to the Presidency, and Ms Charlotte PASTERNAK, responsible for press relationships and external communication, for their valuable contribution to the elaboration of the case study.
© CCMP 2011
Authors: Sylvie HERTRICH, Michel KALIKA and Ulrike MAYRHOFER
Initiating institutions: EM Strasbourg Business School, University of Strasbourg; IAE Lyon, Jean Moulin Lyon 3 University
CONTENTS
I. Presentation of Danone 4
A. Creation of the group and evolution of activities 4
B. Strategic business units in 2010 5
II. Danone’s internationalisation strategy 7
A. From the capture of the European market... 7
B. …to a global expansion strategy 8
III. Danone’s management 10
A. Global management 10
B. Humanistic management 10
In 2010, Danone maintained impressive results; it achieved a turnover of 17.01 billion Euros (+6.9% in relation to 2009) and a net income of 2.03 billion Euros (+33.7% in relation to 2009). Improvements were observed across all strategic business units (SBUs) and all geographical areas, and the company even exceeded the objectives set.
Danone currently constitutes one of the most dynamic companies in the world in the food-processing sector. These last few decades, the company has evolved considerably as regards its SBUs, geographical markets and managerial practices. In a highly competitive market (Nestlé, Kraft Foods, Unilever, etc.), the company was able to adapt in order to pursue a growth strategy and stand out among the world leaders in its industry sector.
As a result of a refocusing strategy, Danone now manages four SBUs: (1) Fresh Dairy Products, (2) Bottled Waters, (3) Infant Nutrition and (4) Medical Nutrition. The geographical diversification of activities enables it to be present in many