DANONE Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

DANONE Case Solution

Analysis

DANONE Corporate level strategies

DANONE has gain a competitive advantage by selecting and management group of different businesses competing in numerous product markets and expected to earn above average return. The main value that has been determined was the businesses portfolio is worth more under the supervision of company rather than under any other ownership. DANONE is market leader which is the strength of the company.

Corporate-level strategy concern the scope of the market in overall industries the firm competes in which is described in appendix 2 and appendix 3 it shows 19 % increase in the revenues since 2001 till 2011 because they diversified their business, capturing synergies between two segments. After diversification, DANONE led to the growth which indirectly increases the numbers in financial statement. The firm manages their portfolio of businesses by applying decentralization. Hence product diversification is a primary form of corporate level strategy so they acquire o0ther businesses which include dairy products, baby food, health and bottled water.

Levels of Diversification

Low Levels: DANONE implement dominant Business diversification Strategy that generates 70-95% of total sales revenue within a single business area so there are four business sections through which it received largest proportion off revenue in overall market share of different industries.
Moderate to High Levels: In 2005, DANONE Diversification Strategy encounters less than 70% of revenue comes from the dominant business i.e. dairy product. There are 5 main competitors in the industry and Nestle is a giant as compare to other competitor. So the DANONE diversification level increases according to the need of the situation because they have to maintain the operations of four different businesses.

Very High Levels: The DANONE does not include in this level of diversification because they acquired more two business and there has relationship with different rivals in the industry.Operating. margin is increased in the in 2011 i.e. (14.1) as compare to overall rivals in the market and less than Nestle (15.1) Appendix 2.

Networking Attitude

Major impacts and conclusion were clearly seen after the implementing of network attitude in 2002. Nonetheless, in order to continue strengthen the knowledge share culture along with employees, the firm should have to examine whether it should extend the concept of network attitude or not. Numerous strategies were considered in order to raise the network attitude within the organization.

Deeper: More Employees

The strategy of “Going Deeper” emphasizes and boost up all the employees, as well as manger, within the firm to share good practices. The strategy that have been implemented were actually aims to create a powerful networking environment in an organization so that whenever employees faces any issues and problems, The first motive is how to solve this current situation as soon as possible.

Improve Business Performance and Efficiency

Due to network attitude good practices are shared in an organization, employees will learn with sharing experiences with other and increase the knowledge in order to maintain and control an efficient and effective operation. If employee has vast and wide information, so it enhances their learning. There is a reduction of problem in a company which leads to higher business performance and their efficiency.

Increase in Management Involvement

Due to communication within firm encourages the moral of the employee and management will have an information about the culture within the firm so by implementing the “deeper management strategy” it involved and contribute on day to day operational activities.

Clear Strategic Alignment with the Firm

The upper management that includes senior management and the employee should have a clear alignment in examining the performance the overall business operations. Thus, strategy will enhance that the business goal is aligned and implemented throughout the firm..............

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