Case Study of Danone

Steven Wang, a fluently bilingual American-born Chinese, jointed Carvel Asia Limited in September 1997. After spending three months, he moved to Beijing with a priority mandate to increase Beijing Carvel‘s sales, particularly in the ice-cream cakes category. But he quickly discovered, “this was going to be difficult because there is an amazing lack of information upon which to base any decisions”. Then he relied on his own observations, feedback from Beijing Carvel customers and sales staff, and information gleaned from business magazines and public reports to help him make his decisions. Finally he found that:-

The environment affects an individual’s behavior. The social, behavioral perspective forms the best approach with which to understand Dan’s situation. People develop the ability to solve problems and approach situations through learning, from either other people’s experiences, or their experiences (Hutchison, 2015). Dan, at the tender age of seven, watched his parents’ divorce. As the case would be for any other child his age; he must have understood that the divorce meant that he would no longer live with both of his parents. At the age of seven, children are, more often than not, likely to make many cognitive errors which, if not corrected in the future, could have adverse effects on their lives.

According to The History of Danone (2009), Isaac Carasso was inspired by the research of Elie Metchnikof, and in 1919 he began using ferments from the Pasteur Institute to manufacture yogurts to sell on prescription to pharmacies in Barcelona, Spain. Carasso began this work, because he saw an opportunity to help the number of children suffering from intestinal disorders, due the lack of healthy nutrition following the First World War. By 1929, Daniel Carasso, Isaac’s son, continued to grow the company by launching the company Danone in Paris. Business for Danone continued to prosper in Paris until 1941, when Daniel

Danone felt that the U.S. was an emerging market for yogurt and hence, Dannon focused its marketing strategy on increasing the yogurt consumption and expanding the category. Dannon had to follow Danone and maintain a strong commitment to CSR. At Danone, local decision making and was trusted and encouraged. Also, Dannon had a responsibility to its parent company and was accountable for a set of deliverables and data for reporting purposes. It believed in collaborative decision making and therefore major strategy

Digoxin toxicity. Digoxin has a narrow therapeutic index and chronic toxicity is more likely in the elderly and those with renal impairment. Since Mr Buchanan is 75 years old, he may already have some form of renal impairment and therefore is at a higher risk of developing toxic serums levels if continually taking Digoxin (Australian Medicines Handbook, 2016 and Nickson, 2014). Digoxin toxicity can be caused by prolonged use, an overdose or a general increase in the current dose (Australian Medicines Handbook, 2016). If Mr Buchanan is taking digoxin for an extended amount of time, he may build up a tolerance to its effects due to being consistently exposed to the drug (Australian Medicines Handbook, 2016). This is significant risk

A Canadian company named Canwall Papers sends a team of two to represent a company in China to negotiate a sale to new wallpaper company. The Canadian team consists of Charlie Burton, the president of Canwall Papers and Phil Rains, the marketing director. Before the Canadians went to China, they had several meetings. The first meeting was with Mr. Lee the manager of the Chinese company and the others were via numbers of letters and faxes. When the Canadians and the Chinese started the negation, it did not go very well. Although the Canadians knew that their product was good and the price was acceptable the Chinese ended up buying from a Japanese equipment manufacturer. This report will analyze the things that caused the Canadian

Through a joint venture franchising structure with fairly rigorous contractual stipulations Michel’s central administration were able to expand the business to China “on a shoestring” while still maintaining “arms length control” of how the Chinese business was run. The licensee and joint venture partner bore the financial risks, while risks of damage to the brand that a failed venture would cause were deemed negligible due to China being so far away from the Australian market.

Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.

Along with consolidation in the local market, the company also sought international expansion with the acquisition of independent distributors, the opening of branches and the forming of joint-ventures in key international markets. With expertise in production capabilities the company expanded into new markets predominantly by acquiring distributors in the target market, thereby gaining valuable insights into the market’s tastes and preferences.

For example a dairy industry called Sanlu Group added melamine, a chemical that increases the appearance of protein in standard tests (“Toxic milk toll rockets in China”, 2008), to their milk powder which eventually caused “four babies to die and about 54,000 children have been found to be suffering from kidney stones” (Paul,2008). In fact, in late 2007, Sanlu Group had received many complaints from the parents. In spite of this, Sanlu Group paid no attention and continued to produce their products. In 2008, the issue broke out and Sanlu Group decided to respond, which helped them control and steady the situation. Despite this, the milk powder scandal was responsible for the severe fall of Sanlu Group’s reputation and they eventually went bankrupt. As demonstrated by the previous example Sanlu’s greed led to bankruptcy, largely because of undermining the importance of public image.

According to Hill (2014) international trade occurs when a firm exports goods or services to consumers in another country.

• Success in a joint venture depends on thorough research and analysis of the objectives.

The La Rose Noire Company did not enter China until after December 2004, following China’s entrance in the World Trade Organization (WTO). No foreign company was allowed to enter the China market without a joint venture and no small foreign firm under $2billion was allowed to distribute domestically, favoring multinational firms. La Rose Noire entered the market as a wholly-owned foreign enterprise (WOFE) once it was made possible by China’s agreement upon entering the WTO. Only two of his employees, Yvonne Wong, the General Manager, and Terrence Chan, the Production Manager for Hong Kong and Dongguan, are shareholders of the company. They both have been with the company over ten years and are highly invested in its success. In fact, most of his employees in Hong Kong have been working for him on an average of ten years. La Rose Noire was also able to distribute its own products because of this agreement that allowed small firms to compete in the domestic market.

Ackerman (2008). seems to believe that PepsiCo’s move to invest heavily in the Chinese market can appear to be “bullish,” yet “optimistic.” The author points out negatives concerning the venture, such as the value of the dollar in the market, economic downturns and sinking financial profit reports. However, perception of the author’s view of the company’s social responsibility is high, since she states that investing in China will create new employment opportunities due to expansion of R& D facilities, manufacturing capacity and sales force. “Thousands of new jobs are expected to be created in China because of the investments” (Ackerman, 2008, para. 11).

Danone’s ultimate goal is to take over the Chinese beverage industry. Therefore it needed to acquire or merge with competition. Danone remained quiet and turned a blind eye when it knew of Wahaha Group’s use of the trademark and breach of the non-compete agreement. This could be in part due to the fact that Danone was acquiring other companies such as Wahaha’s direct competitor, Robust. I consider this a “give and take” strategy used by Danone. Danone did not want to rock the boat with Wahaha as it was pursuing its own interests separately too. Therefore, rather than confront Wahaha Group about the