BUS5114 Danone

Case Study: Danone
UNIT 2: IT Architectures: Hardware, Software, and the Cloud
University of the People

BUS 5114-01 MIS and Technology - AY2023-T2
Dr. Farookh Shaikh
April 24th , 2024
Abstract
In this paper, I will study Danone’s case according to the case report form and its guidelines
according to the following:
• Key facts about the company
• Key issues and the underlying issues connected to business principles
• The facts which affect these issues
• Solution or strategies implemented
Introduction
Danone Group is a multinational company that produces various types of food and beverages.
Danone claims to be a leader in the market for dairy and plant-based products (Strategy &S Key
Figures, n.d.). In 2006 Danone became the second-largest baby food company purchase in the
world after buying Numero (BBC News, 2007). In the United States, Danone is published under
the name Dannon, which is a subsidiary of the Danone Group. Danone holds several well-known
brands of drinking water such as Volvic, Evian, Aqua, and Badoit. Approximately 57% of sales in
2007 came from dairy products, 23% from beverages, and 11% from biscuits and cereals.
Key Facts
Danone is a company that continues to transform towards a sustainable industry that has a high
concern for environmental preservation. In line with Danone's corporate vision, One Planet One
Health, there is a strong and direct link between public health and environmental health for a better
future (Danone.com, n.d.). This vision is realized through a commitment to support the reduction
of carbon emissions and focus on implementing a sustainability business strategy with reference
to the Sustainable Development Goals (SDGs), as well as the sustainable development goals set
by the government. As a manifestation of the company's vision, Danone is committed to
maintaining the sustainability of water resources, introducing new plant-based products, managing
post-consumption packaging, and minimizing the impact of energy use in its business operations,
and announced their 2030 sustainable goals to green their products even further.
Key Issues
The trigger for change is the perception that there is a combination of factors, both internal and
external, that has a negative impact on the company.
1. Internal
There is a clear perception that Danone has lost focus and that it appears to be affecting employee
engagement and organizational culture.
2. External
Danone's reputation seems to have moved away from being a unique company specializing in a
few very specific products, to being another multinational looking for opportunities to enter any
possible field with a profit motive only. This encourages a process of deep reflection to reconnect
with Danone's original spirit.
Danone's quest to reconnect with its original mission is built on two key ideas of health and growth.
Danone was originally a healthy food product company that wanted to have a dual project: social
and economic. Since the company was successful, it has grown, but that growth seems to be
running its course. Therefore, the company decided it wanted to grow, but not at any price. He
wanted to maintain a clear vision and mission around this central theme of “health and growth”.
Furthermore, Danone recognizes that one of the main challenges that the world will face in the
future is nutrition from all points of view: sustainability, eating habits, demographic changes,
epidemics, and so on.
The main challenges faced by Danone in relation to implementing this strategic shift towards
innovation driven by sustainability are (Vilanova & Dettoni,2011) :
1. involving top management
2. reconciling short-term and long-term goals and outcomes
3. developing tools to implement and accurately measure new policies and actions
4. developing a reporting and communication scheme.
These four challenges often arise when an innovation is implemented, because it often clashes with
the daily pressures and responsibilities of different company executives, requires short-term
investment and resources while long-term results are uncertain, there are few tools to do so.
Solution and Strategies
By establishing this Danone Sustainability Principle, hereinafter referred to as “DSP”, Danone sets
the standard for its partners, including suppliers, distributors, and all other third parties, hereinafter
referred to as the “Company”, and outlines a commitment to establishing sustainable, and ethical
relationships. Because Danone recognizes that these Sustainability Principles in some cases go
beyond local industry norms and/or regulations, and we will work to share knowledge and
guidance with partners towards continuous improvement (Danone's Sustainability Principles for
Business Partners, 2009). The Danone Sustainability Principles include:
1. The Fundamental Social Principles.
2. The Fundamental Environmental Principles.

3. The Business Ethics Principles.
Danone's competitiveness model is built on four pillars (Gelski, 2022):
1. Restoration of Danone’s competitiveness in core categories and geographies
2. Selective expansion of Danone’s presence in segments, channels and geographies
3. Seeding for future growth avenues
4. Portfolio rotation
And the new strategy “Renew Danone” will be implemented (Danone Annual Report 2021, 2021).
Conclusion
Sustainability is a powerful way to generate innovation at Danone, generate creativity through
presenting new problems to solve, setting big goals that force people to think differently and foster
contradictions. Employees are then empowered to act, resulting in innovation. Sustainability and
innovation encourage each other and together enhance competitiveness. The most important lesson
learned is that developing a culture of innovation and sustainability is a very powerful source of
competitive advantage, as it is very complex to instill in organizations, and therefore almost
impossible to replicate.
References
BBC News. (2007, July 3). Danone mulls Kraft biscuit deal. BBC News. 3 July
2007. http://news.bbc.co.uk/2/hi/business/6264318.stm
Danone.com. (n.d.). Creating and Sharing Suistanable Value. Danone.com|About Danone.
https://www.danone.com/about-danone/sustainable-value-creation.html
Danone's Sustainability Principles for Business Partners. (2009). Danone's Sustainability
Principles for Business Partners. The Circulate Initiative.
https://www.thecirculateinitiative.org/projects/Danone%27s-Sustainability-Principles-for-
Business-Partners
Gelski, Jeff. (2022). New Strategy at Danone focuses on four pillars.
https://www.bakingbusiness.com/articles/55901-new-strategy-at-danone-focuses-on-four-pillars
Strategy & Key Figures. (n.d.). Strategy & Key Figures.
Danone.com|Brands. https://www.danone.com/brands/dairy-plant-based-products/strategy-and-
key-figures.html
Vilanova, M., & Dettoni, P. (2011). Sustainable innovation strategies: Exploring the cases of
Danone and interface. Barcelona: ESADE, Institute for Social Innovation.

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Case Study: Danone

UNIT 2: IT Architectures: Hardware, Software, and the Cloud

University of the People

according to the following:

• Key facts about the company

• Key issues and the underlying issues connected to business principles

• The facts which affect these issues

• Solution or strategies implemented

by the government. As a manifestation of the company's vision, Danone is committed to

external, that has a negative impact on the company.

engagement and organizational culture.

with Danone's original spirit.

epidemics, and so on.

innovation driven by sustainability are (Vilanova & Dettoni,2011) :

1. involving top management

2. reconciling short-term and long-term goals and outcomes

4. developing a reporting and communication scheme.

Solution and Strategies

Business Partners, 2009). The Danone Sustainability Principles include:

1. The Fundamental Social Principles.

2. The Fundamental Environmental Principles.

Danone's competitiveness model is built on four pillars (Gelski, 2022):

1. Restoration of Danone’s competitiveness in core categories and geographies

2. Selective expansion of Danone’s presence in segments, channels and geographies

3. Seeding for future growth avenues

Sustainability is a powerful way to generate innovation at Danone, generate creativity through

competitive advantage, as it is very complex to instill in organizations, and therefore almost

Danone.com. (n.d.). Creating and Sharing Suistanable Value. Danone.com|About Danone.

Danone's Sustainability Principles for Business Partners. (2009). Danone's Sustainability

Principles for Business Partners. The Circulate Initiative.

Gelski, Jeff. (2022). New Strategy at Danone focuses on four pillars.

Strategy & Key Figures. (n.d.). Strategy & Key Figures.

Danone and interface. Barcelona: ESADE, Institute for Social Innovation.

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