Within the last decades, globalization has changed the face of the world with a shift from ‘nationalism and protectionism' to the idea of a ‘global village'. A new world economic order emerged and the regional and multinational trade agreements and free trade areas played a key role in this changing worldwide economy. Nowadays, every multinational group that is located in one of the European state members has to take into account the ‘Europe influence' and no strategy is possible without Europe. Danone undertook its global expansion in the early stages of the company. In the meantime, Western countries remained and it still represents the base camp of the company as this geographic area represents the main part of Danone's sales. As a consequence, we can easily assume that the European Union was strongly involved into the company's expansion and success story.
This report is divided into four parts that aim to show how this multinational company is influenced by European policies. Firstly, the analysis will emphasize the EU influences on general business setting so as to provide a general background. Secondly, this report will describe the main EU policies that generate consequences and have an impact in the food industry sector. Then, the idea is to illustrate how the tactical and strategic choices of Danone may be influenced by the EU. Finally, the last part will focus on the ways in which the EU might influence Danone's operational aspects and it will put into evidence the fact that EU policies play an obvious role in the company's strategy.
Before starting the analysis of the company according to the EU influences, it seems relevant to provide a description of Danone so as to get a clear understanding of the background. Danone is a French food-products multinational corporation and this group belongs to the top ten global players in the food industry. The first analysis that has to be undertaken consists of the description of the EU policies that influence the general business setting. This general overview is the first step that has to be done to focus then on the EU policies that influence the sector of our company and DANONE's choices. It seems that the main strategy that should be followed throughout this report is to create the setting and to shift from a general overview to a specific analysis.
The influence of the European Union on the global market and business activity is constantly evolving with significant impact on investment and trade. Nowadays, the major companies in the EU are expanding worldwide so as to become important players. The EU is a regional agreement and supranational union of 27 European member states. A key activity of the EU consists in establishing and representing the administration of a common single market, composed of a customs union, a common trade policy, the single currency (the Euro that created a new business setting) and a common agricultural policy. Danone is a multinational company and has its head offices in Paris. Its worldwide presence and the head office's location explain the fact this multinational corporation is influenced by EU policies.
[...] To sum up we can notice that the EU influences directly on the strategy of Danone. Indeed it has an impact both on the overall strategy and on very precise and detailed strategic aspects. We can also point out the idea that Danone has made a real effort in implemented social and environment EU incentives and strive to go even further the minimum quotas. CONCLUSION As a result of this report, we can easily notice that the EU policies are involved at different levels and that all the regulations put in place by the EU play a key role in companies' strategy. [...]
[...] The European consumer organization, asked the food industry to be more transparent about the use of nanotechnology in food. Parliament also calls for the obligatory mention of substances that increase the appetite as sweeteners and producers indicated on the front of the pack. The country of origin The mention of the origin is currently voluntary except when a lack of information may mislead the consumer about the real origin of the product. Regarding meat, beef should only mention the origin and the Parliament has called for the compulsory indication of origin is extended to fish, poultry and dairy products when being used in processed foods like other single- ingredient products. [...]
[...] What was the influence of the European Commission on the acquisition of Numico? The European Commission has conducted a market survey and found several problems: ▪ In France, the main overlap of activities occurred on the market for ‘baby milk', where Danone and Nestlé's positions are challenged by Numico with its brands Nutricia and Milupa. The market investigation commission said that Numico had played an important role in making the market more competitive in both pricing and innovation. ▪ In Belgium, the survey showed that Danone and Numico are involved into a direct competition in the market for baby meal and acquisition transaction would reduce competition significantly. [...]
[...] European integration process and its influence for business: Case of Danone Table of Contents INTRODUCTION PROFILE OF THE COMPANY I. EU influences on general business setting II. European policies that influence the food industry sector A. General Measures B. Food security legislation C. Quality control: reforms of packaging and labeling III. Description of the potential influence the EU might have or has had on the strategic and tactical choices of Danone IV. Description of the ways in which the EU might influence Danone's operational aspects A. [...]
[...] This European strategy has various objectives: Reconciling diversity and transition These EU rules on food safety are common, but nevertheless take account of diversity. The EU must ensure that its standards do not crowd out the traditional food market; they do not discourage innovation and do not affect quality. The new Member States, who come by their accession to the EU single market, may need transitional periods to comply with strict EU standards on food safety. However, during this period, foods that do not meet European standards cannot be exported to other EU countries. [...]
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