...Nature People, E RmAnC fo GRI pERoRS T IndICA SUSTAINABILITY REPORT 2012 STRATEgY 4 EDITORIAL FRANCK RIBOUD 6 KEY SOCIAL TOPICS NUTRITION AND HEALTH ISSUES SOCIAL ISSUES ENVIRONMENTAL ISSUES 7 10 12 14 STRATEgY 2012 HIgHLIgHTS HEALTH FOR ALL PEOPLE NATURE 15 22 28 34 40 MEASURINg PROgRESS AND PERFORMANCE THROUgHOUT THE VALUE CHAIN DANONE WAY RESPECT DANONE’S EVALUATION BY NON-FINANCIAL RATING AGENCIES 41 46 56 HISTORICAL APPROACH AND HIgHLIgHTS REFERENCE DOCUMENTS HIGHLIGHTS AND KEY DATES 1972-2012 57 58 50 2 Danone Sustainability Report 2012 PERFORMANCE 62 gRI INDEx Self-evaluation of the application of GRI according to version 3.0 guidelines for the GRI with approval by KPMG Audit. 72 IMPACTS AND RESPONSIBILITIES IN BUSINESS, FROM END TO END 74 COMPANY PROFILE AND REPORT PARAMETERS COMPANY PROFILE REPORT PARAMETERS VALIDATION OF THE REPORT BY AN EXTERNAL THIRD PARTY 75 76 83 86 PERFORMANCE INDICATORS GOVERNANCE, COMMITMENTS AND DIALOGUE ECONOMIC ENVIRONMENTAL SOCIAL HUMAN RIGHTS SOCIETY PRODUCT RESPONSIBILITY 86 94 102 134 152 158 166 176 CONTACTS Danone Sustainability Report 2012 3 SUSTAINABILITY REPORT 2012 EDITORIAL FRANCK RIBOUD he year 2012 confirmed in spectacular manner the profound shift in the global economy that is gathering pace. On the one hand, new economic powers such as China, India and Brazil are growing as other economies such as Indonesia and Nigeria are emerging as future powers...
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..._____________________________________________1.0 Executive Summary This research purposes to find out the problems in decreasing sales of Grameen Denone Shokti Doi. Following the social business concept, French based food and beverage company Denon started its operation by making an agreement with Grameen group which is named as Grameen Danon. Grameen Danon launched in 2006 and they officially launched their 1st package of product named Shokti doi as the main concern of Shokti doi is to provide nutrition to the poor children of Bangladesh which can able to fulfill their nutritional requirements. As they started their business they have faced lots of obstacles such as the lack of proper distribution, non-standardized management along with localization problem. Also, the distribution through women raised the fact of cultural barriers. The unplanned product and overstated pricing strategy also become a fact of their market loss. Various key factors like Product, Price, Promotion, Proper segmentation and target market are also play a big role in terms of generation revenue for n organization. Based on our research objectives and other related subjects of the research, we developed few hypotheses for it, which we have tested by our primary and secondary data that we have collected by survey. The data we have collected can be divided into two categories are Primary Data and Secondary Data. Primary data refers to the data collected from the survey that we have conducted among the...
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...936 Groupe Danone - issues regarding its policies 1. Company’s background The company has its roots in Spain, where Danone was founded by Isaac Carasso in 1919. Having previously lived in the Balkans where yogurt was a dietary staple, Carasso decided to introduce this healthy product in Barcelona. He opened a small yogurt business named "Danone," meaning "Little Daniel" after his son. Carasso was aware of scientific advances that had been made with fermented milk by Elie Metchnikoff at the Pasteur Institute in Paris. He perfected the first industrial manufacturing process by combining the traditional method of making yogurt with the pure cultures that had been isolated in Paris. In 1923, the first Danone yogurts start to be sold in pharmacies as doctors recommend it for its therapeutic qualities. The younger Carasso, Daniel, learned the family business in Spain and decided to establish Danone in France in 1929. In 1949, the yogurt is almost a dairy product. The porcelain “envase” is substituted by the one made of glass. This innovation makes it easier to popularize the yogurt. In 1968, Danone starts its first TV campaign. In 1985, Danone creates its first “low fat yogurt” called “Danone Desnatado”. In 1992, Danone was the Official Sponsor of Barcelona's Olympic Games. “Danone Institute” is created in 1993. Its main objective is to research and develop healthier and better products for the company. 2. Mission, values and corporate philosophy Danone Group's mission...
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...Introduction The Dannon Company is US subsidiary of the Danone Company that was founded in Spain by Isaac Carasso in 1919. Isaac Carasso created an innovative yogurt product using ingredients obtained from Paris, which were used to treat intestinal disorders. Isaac’s son, Daniel went on to found Danone in Paris and after Isaac’s death in 1939, he immigrated to the United States seeking a safe-haven after World War II (Marquis, 2010). In 1942, Carasso founded Dannon Milk Products, Inc., changing the name from Danone to Dannon in order to sound more “American”. During this time, the market for yogurt in the United States was almost non-existent. Carasso had two successful breakthroughs, first in 1947, introducing “fruit on the bottom” yogurt and in 1955 with low-fat yogurt, all appealing to health enthusiasts (Marquis, 2010). Over the next several decades, structural and product changes took Dannon is several different directions. In the 1980’s Dannon had 17 different product lines and had received FDA approval for a new sugar free sweetener which allowed for the most successful product launch to date, “Dannon Light”. In 1994, the company focused on rebranding their products, focusing on the overall health benefits of everything they produced (Marquis, 2010). Although the United States had had yogurt products available for over 60 years, research concluded that yogurt was not a core component to the American diet and the biggest potential for growth for Danone, rested within the...
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...THE DANNON COMPANY: MARKETING AND CORPORATE SOCIAL RESPONSIBILITY (A) Question 1) Should Dannon proactively communicate its CSR activities to the public? Discuss pros and cons of your decision. Answer: Dannon should not communicate its CSR activities to the public. Dannon and Yoplait are the two leading company in US with Yoplait have 35.4% market share and Dannon is second with 28.9% market share. Dannon is not too far behind Yoplait and so they don’t need to do much to become the number 1 player in America. Also, the consumers can gather more knowledge about the CSR activities of Dannon through the Dannon cares section on the website and the 16- page Corporate Social Responsibility Overview. So, it is not that the consumers are fully unaware of the company’s CSR activities. The pros of not communicating the CSR activities are: * When they will spend their marketing budget on TV ads, in-store shopper marketing tactics, branded websites etc. people will become more aware about the high health benefit products that they provide and thus increase the consumption. * Communicating its CSR activities to the public will not be of much benefit because consumers are more concerned about how much satisfaction the product can provide and how it impacts their life. * As the consumption increases, the loyalty will increase and there will be long-term sales impact. * Sometimes the consumers...
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...economy in China has attracted numerous companies that want to enter this market and Danone Group is one of them. Danone is a French food and beverage conglomerate and signed an agreement with the Hangzhou Wahaha Group in 1996, a Chinese beverage company, to set up a series of joint ventures in China. The partnership was established to market products under the Wahaha brand name. Ultimately, the agreement resulted into thirty-nine joint ventures. Those joint ventures were hugely profitable as the Wahaha brand became a household name in China. In spite of these successes, the relationship started to deteriorate. After years of court battles, Danone finally pulled out of the JV and ended this partnership with Wahaha. Based on the case study, this essay will firstly analyze Danone’s market entry mode and limitations of this mode. Subsequently, this essay will discuss contributions of both Wahaha and Danone in this relationship. Finally, this essay will present reasons for the Danone-Wahaha dispute and lessons derived from this dispute. Danone’s market entry mode Danone entered the Chinese market selling consumer drink products, including fruit juice, dairy products and bottled water, all with Chinese joint venture partners who were market leading brands in China. A joint venture is a special type of strategic alliance, which requires establishing a firm jointly owned by two or more otherwise independent firms (Hill, Wee and Udayasankar, 2012). Danone and Wahaha in this case are the two...
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..._____________________________________________1.0 Executive Summary This research purposes to find out the problems in decreasing sales of Grameen Denone Shokti Doi. Following the social business concept, French based food and beverage company Denon started its operation by making an agreement with Grameen group which is named as Grameen Danon. Grameen Danon launched in 2006 and they officially launched their 1st package of product named Shokti doi as the main concern of Shokti doi is to provide nutrition to the poor children of Bangladesh which can able to fulfill their nutritional requirements. As they started their business they have faced lots of obstacles such as the lack of proper distribution, non-standardized management along with localization problem. Also, the distribution through women raised the fact of cultural barriers. The unplanned product and overstated pricing strategy also become a fact of their market loss. Various key factors like Product, Price, Promotion, Proper segmentation and target market are also play a big role in terms of generation revenue for n organization. Based on our research objectives and other related subjects of the research, we developed few hypotheses for it, which we have tested by our primary and secondary data that we have collected by survey. The data we have collected can be divided into two categories are Primary Data and Secondary Data. Primary data refers to the data collected from the survey that we have conducted among the...
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...Executive Summary “Group DANONE” is a French company, It produces dairy products but Activia is the company’s top-selling brand of yogurt worldwide. Activia was introduced to the Egyptian market in June 2008 A year after the introduction of Activia, the probiotics market had witnessed fast growth, increasing from 0.2% to 5.7% of the total yogurt market, of which Activia captured more than 76% (4.3%of the total yogurt market) By 2010, Activia reached 84% (5.7% out of 6.8% of the total yogurt market) DANONE considered probiotic yogurt a good business opportunity. Now, DANONE is challenging the low awareness of probiotic yogurts in Egypt by developing an advertising campaigns and PR activities including 360 campaigns, whereby the company used all available communication tools to reach its target market. * Introduction It was not easy for Danone to grow and lead the probiotics market in Egypt because of the low awareness of probiotic yogurts in general. But Danon nevertheless considered probiotic yogurt a good business opportunity and began working to tackle those challenges. Danone attempted to raise awareness of the vitality of probiotic yogurts to show how they positively affect the digestive system, and help those who have digestion problems. To achieve these goals, Danone developed advertising campaigns and PR activities including 360 campaign, whereby the company used all available communication tools to reach its target market. Accordingly, Danone designed television...
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...Long Range Planning 43 (2010) 308e325 http://www.elsevier.com/locate/lrp Building Social Business Models: Lessons from the Grameen Experience Muhammad Yunus, Bertrand Moingeon and Laurence Lehmann-Ortega Grameen bank, founded in 1976, has both pioneered the development of micro-finance, and created nearly 30 businesses designed to alleviate poverty. The article traces the gradual development of Grameen’s expertise in formulating social business models, which require new value propositions, value constellations and profit equations, and as such, resembles business model innovation. The article presents five lessons learned from this experience: three are similar to those of conventional business model innovation e challenging conventional thinking, finding complementary partners and undertaking continuous experimentation; two are specific to social business models: recruiting social-profit-oriented shareholders, and specifying social profit objectives clearly and early. We suggest these new business models e where stakeholders replace shareholders as the focus of value maximization e could empower capitalism to address overwhelming global concerns. Ó 2010 Elsevier Ltd. All rights reserved. Introduction The Grameen Group is a network of nearly 30 sister organizations linked to the Bangladeshi Grameen Bank, the microcredit pioneer and (together with its founder, Muhammad Yunus, one of this article’s co-authors) 2006 Nobel Peace Prize winner. This group was established in...
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...China By Shangguan Zhoudong (chinadaily.com.cn) 2007-06-15 Brief introduction Group Danone is one of the most famous food and beverage groups in the world with its headquarters in Paris and 90,000 staff members worldwide. Group Danone is a Global Fortune 500 company with a long history and large size. Danone develops its business across over 120 countries focusing on three core categories: fresh dairy products, biscuits (in which it ranks second worldwide) and beverages (in which it ranks first worldwide). Founded in 1966, Danone has followed an active expansion strategy throughout the world since the 1990s. In less than 40 years, Danone has become a giant of the food industry, owning many famous international brands such as Danone, LU, Evian, and more. Since the end of the 1980s, Danone began to develop the production and business in China extensively by investing in building factories. Now, the main business of Danone in China concerns yogurt, biscuits and beverages. Danone has 70 factories in China, including Danone Biscuits (in Shanghai, Suzhou and Jiangmen), Robust (in Guangzhou), Wahaha (in Hang Zhou), and Health (in Shenzhen). The products are not only sold in China, but also exported to different countries. Four brands under Danone Danone: the leading brand worldwide for fresh dairy products; Danone represents almost 20 percent of the international market. Danone is present in 40 countries worldwide. Evian: the best selling mineral water brand, with 1...
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...existence except 1983, 1991 and 1992. The socially-oriented organizations in the Grameen Group now range from the country’s largest phone company to one supplying affordable healthcare. The Group’s on-going experience (over almost 30 years) of building firms whose purpose is to alleviate poverty has led to the emergence of the concept of ‘social business’, which can be viewed as still being under construction. Established multinational companies (MNC) have recently shown some interest in the Grameen experience and in its fight against poverty as part of a more general emphasis on corporate social responsibility (CSR). However shareholder value maximization remains the rule in the capitalist system, and e clearly e the reconciliation of this with social objectives is often problematic. Thus, although advocates of CSR like to propose that companies should be measured by a ‘triple bottom line’ of financial, social and environmental benefits, ultimately only one bottom line usually matters: financial profit. However, research has shown that, if managed strategically, CSR projects can indeed pay off, both socially and financially.1 In the midst of the current financial and economic crisis, some companies have begun to question their role more fundamentally and seem to be awakening to social change issues. Some pioneering established companies have sought to implement more pro-active CSR policies that anticipate social trends and go beyond the minimum required,2 and this impetus ...
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...entry model for ABC Limited. Because according to compare with them, Foreign Direct Investment maintains more control and high profit potential in Business than others (details in table 1). Foreign Direct Investment refers to an investment made by business enterprise in one country into a company in another country (Oxford Reference, 2009). It...
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...Study: The Dannon Company Student’s Name Institution Affiliation Case Study: The Cannon Company Introduction Dannon Company was among the US subsidiary of Danone, which was one of the largest health-focused companies in the whole world. Its global business centered on fresh dairy such as active yoghurt, medical nutrition, baby nutrition and the bottled water. In 2008, Dannon did manufactured and also marketed the fresh dairy products in US and they became number 2 player in domestic yoghurt market. Dannon’s marketing efforts did focused on the growing US yoghurt consumption and expanding the category, and this was while growing the brands. Dannon has been maintaining some strong commitment to CSR, which was integrated into the overall mission of the company. They have internalized its CSR commitments and programs (Marquis, Et al, 2010). Danone took some holistic approach to social responsibility and this was indicated by the mission statement. The social values were embedded deeply in the company’s culture and also the business. Antoine Roboud, who was the CEO, communicated the vision of Danone double commitment to the economic performance and social responsibility in 1972. According to the senior leadership, the social responsibility was the basis to the purpose of Danone as the economic performance. This was the double project and it stipulated some equal respect for the social influence and the financial results of the business decisions (Marquis...
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...This paper is about the complexity of managing organizations. As theoretical groundwork the book Organising and Managing Work by Tony Watson will be used. The book by Tony Watson covers issues about organizational, managerial and strategic behavior. In particular, the author argues for a critical common sense and the use of philosophical pragmatism (Watson, 2006). He also questions the way work is organized and managed. Finally, the process-relation perspective, a critical perspective of how to think about organizations and their relations and interactions with people, is taken by Watson (2006). This paper will start with a description of the two theories “System-control framing” and “Process-relational framing”. Afterwards the three concepts strategic exchange, negotiated order and double control will be defined and exemplified by different cases from the course. Finally, the paper will look into the complexity of managing knowledge at organizations supported by examples from Danone and McKinsey. In the field of leadership and management studies, there are two main perspectives “System-control framing” and “Process-relational framing”, which can help to analyze and make sense of complex organizations. The system-control perspective recognizes organizations as an entity that is “a system of managerially designed rules and roles existing on its own terms […] based on an organization design with a set of structural and cultural characteristics” (Watson, 2006, p.30). According...
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...’A PROJECT ON A STUDY ON CONSUMER PREFERENCES FOR COCA COLA” PREFACE Market provides a key to gain actual success only to those brands which match best to the current environment i.e." imperative" which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumer’s preferences for COCA COLA. After going through a detail analysis of market behavior and future prospect, t may also provide an opportunity to COCA COLA to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Delhi, Ghaziabad, city in particular and through out the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of COCA COLA has to keep in mind various factors specially while preparing a plan for marketing...
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