Danone: Strategy Implementation in an International Food and Beverage Company By 2012, Danone had grown to become one of the world’s largest multinational food companies with four major business areas—fresh dairy products, water, baby nutrition, and medical nutrition—and a growing emphasis on emerging markets. Danone’s growth had been achieved with a strategy and management system that was very different from its leading rivals’—Nestlé and Kraft Foods— or from other consumer product multinationals. Its strategy was entrepreneurial and decentralized: the heads of its country business units possessed substantial decision-making powers and local brands accounted for a high proportion of its total sales. Danone’s business principles played a key role in its overall coordination, cohesiveness, and identity. The case seeks to comprehend the contribution of Danone’s values and principles, and especially its commitments to social and environmental responsibility, to its competitive advantage and to the effectiveness of its strategy implementation, and to explore how Danone might improve its fi nancial performance and shareholder returns in the future.
Danone: strategy implementation in an international food and beverage company - case 21
GRANT, ROBERT;AMODIO, ANGELA
2012
Abstract
Danone: Strategy Implementation in an International Food and Beverage Company By 2012, Danone had grown to become one of the world’s largest multinational food companies with four major business areas—fresh dairy products, water, baby nutrition, and medical nutrition—and a growing emphasis on emerging markets. Danone’s growth had been achieved with a strategy and management system that was very different from its leading rivals’—Nestlé and Kraft Foods— or from other consumer product multinationals. Its strategy was entrepreneurial and decentralized: the heads of its country business units possessed substantial decision-making powers and local brands accounted for a high proportion of its total sales. Danone’s business principles played a key role in its overall coordination, cohesiveness, and identity. The case seeks to comprehend the contribution of Danone’s values and principles, and especially its commitments to social and environmental responsibility, to its competitive advantage and to the effectiveness of its strategy implementation, and to explore how Danone might improve its fi nancial performance and shareholder returns in the future.
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