The mission provided by the group is to accentuate health through the food industry to the largest number of people From a strategic point of view, Danone's situation is unique. Danone created the Danone Research Institute which tries to find new products which benefit health. In fact, this laboratory is very active, and its research had led to the development of numerous products, especially in the dairy products field.
Moreover, we can notice that the group has key positions in three areas, and two of them are very profitable compared to the general food market (bottled water and biscuits). It is a positive element because operational margins are thus very high and it serves as an engine of growth for the whole company.
Marketing is a key function for Danone, in order to make the products known to the public and thus increase sales. The company is very well considered by the sector, and students from business schools rank the group as the most attractive one in the sector .
Lastly, the sponsoring activity is very important for the group. Indeed, Danone is active in the sports field, with a soccer cup organized by the group, by instance. This element also contributes to the positive image of the group.
[...] Internationalization of activities led to numerous participations and acquisitions worldwide. The group has strengthened its presence in biscuits (Poland, Colombia, Tunisia, Morocco and Brazil), in dairy products (Argentina, the USA, Poland, Turkey), in bottled water (Argentina). 2000: Danone is a worldwide company and able to compete with a few big groups. 38% of its sales turnover is made outside Europe. C] Values, Mission and Objectives The mission provided by the group is to build a healthy community through food industry. [...]
[...] The relation between the two firms is becoming worse. The disagreement is that subsidiaries are taking advantage of the marketing and the distribution network. Danone believes that Wahaha has violated the agreement by creating those new subsidiaries with new brands that are in direct competition with brands commercialized by Danone. The French group wants to buy those subsidiaries for 4 billion yuans (384 million euros). But the boss and founder of Wahaha does not want to hear about Danone being willing to take control of his entire company in order to create monopoly. [...]
[...] 1995: Participation in Haomen (beer industry) in China. 1996: Control of Hangzhou Wahaha (bottled water) in China. Acquisition of Wuhan Dongxi Hu Beer in China. 1998: Participation in Yeo Hiap Sung, leader in Asian drinks in Singapour. Agreement conclude with Aqua (first water producer in Indonesia) and Health (first water producer in China) 2000: acquisition of Robust Company, one of the leader in milky drinks and water in China. 2001: Danone increased its participation in Aqua from 40% to 74%. [...]
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