Management
CHAPTER 13
Case Study – Danone
In “Global machinery threatens CEE” posted on The Regional and Environmental Center for Central and Eastern Europe website, Tom Popper states, “Globalisation is making the world smaller, but also increasing economic inequity and pressures on the environment” (2001). The countries of Central and
Eastern Europe (CEE) have been eagerly seeking the benefits of globalized free-market capitalism, such as improved communication, increased commerce and international partnering, but they are learning that a profit-run system has drawbacks. Critics of globalization have staged protests at WTO and World Bank meetings and other institutional conferences. The International Monetary Fund (IMF) meeting in Prague brought many CEE concerns about protecting environments and economies to light. Some of the protests ended in clashes between police and demonstrators; other protests have been successful.
Let’s look at the multinational food company Danone, a French company with 80 % of its business outside France and over 50 % outside Western Europe. The company began making its way into the CEE in 1989, after the collapse of the Soviet empire, by sending teams to the former communist bloc countries to investigate market potential. The company first began selling its western-made products in targeted countries and then entered into partnerships with local dairies, eventually buying out and taking control of various enterprises such as sweets manufacturer, Cokoladovny, in the Czech Republic.
In 1997, Groupe Danone decided to focus on three main markets: dairy products, beverages and biscuits and cereals. To this end the company sold off its grocery and confectionery brands, its container division (1999) and withdrew from brewing, selling off Galbani in 2002. During this time Danone stepped up its visibility worldwide with acquisitions in Asia, Latin America, Central Europe, Africa and the Middle
East.
Today Danone employs nearly 90,000
Case Study – Danone
In “Global machinery threatens CEE” posted on The Regional and Environmental Center for Central and Eastern Europe website, Tom Popper states, “Globalisation is making the world smaller, but also increasing economic inequity and pressures on the environment” (2001). The countries of Central and
Eastern Europe (CEE) have been eagerly seeking the benefits of globalized free-market capitalism, such as improved communication, increased commerce and international partnering, but they are learning that a profit-run system has drawbacks. Critics of globalization have staged protests at WTO and World Bank meetings and other institutional conferences. The International Monetary Fund (IMF) meeting in Prague brought many CEE concerns about protecting environments and economies to light. Some of the protests ended in clashes between police and demonstrators; other protests have been successful.
Let’s look at the multinational food company Danone, a French company with 80 % of its business outside France and over 50 % outside Western Europe. The company began making its way into the CEE in 1989, after the collapse of the Soviet empire, by sending teams to the former communist bloc countries to investigate market potential. The company first began selling its western-made products in targeted countries and then entered into partnerships with local dairies, eventually buying out and taking control of various enterprises such as sweets manufacturer, Cokoladovny, in the Czech Republic.
In 1997, Groupe Danone decided to focus on three main markets: dairy products, beverages and biscuits and cereals. To this end the company sold off its grocery and confectionery brands, its container division (1999) and withdrew from brewing, selling off Galbani in 2002. During this time Danone stepped up its visibility worldwide with acquisitions in Asia, Latin America, Central Europe, Africa and the Middle
East.
Today Danone employs nearly 90,000
References: “Biscuit Revolution (2002) M&H Communications. Available from: http://www.ipra.org/library/docs/gwa2053.htm [Accessed 30 December 2006]. Esser, D. and Ozoux, P. (2004) “Restructuring with Workforce Reduction – How to manage the process in a socially sensitive manner” Eurofood ( 2001) Eurofood, 12 April 2001. Available from: http://www.fi ndarticles.com/p/articles/mi_m0DQA/is_2001_ April_12/ai_74089678 [Accessed 30 December 2006]. Food Navigator (2001) “Danone Factory in Hungary Resists Closure”. Food navigator.com, 5 November 2001. Available from: http://www.foodnavigator.com/news/ng.asp?id 40615-danone-factory-in [Accessed 30 December 2006]. Groupe Danone (2006) Website. Available from: www.danone.com [Accessed 30 December 2006]. Nemes, P. (2001) “News from Hungary.” CER, Central Europe Review, 12 April 2001, 3 (14). Available from: http://www.ce-review.org/01/14/hungarynews14.html [Accessed 30 December 2006]. Popper, T. (2001) “Global Machinery Threatens CEE.” T he Bulletin: The Quarterly magazine of the Regional Environmental Center for Central and Eastern Europe, December 2001, 10 (4)