Danone Case Study

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The corporate venture between Group Danone France and Grameen Companies of Bangladesh can be considered a social business venture with an infusion of corporate responsibility rather than a for profit firm. Though Danone was among the first companies to start a Social Business Enterprise, the conception of integrating business practices with social and environment issues was not a new business model. The idea of establishing an enterprise for social benefit would allow Grameen Companies and Danone to capitalize on much needed support for the underprivileged country of Bangladesh by introducing a new product to be produced by Danone. The business values and ethics of business practice of the partnership were centered on sustainable human development; the sole motive behind the organization was for social benefit. Danone had to make production changes to utilize the resources locally available, thus reducing importing cost that would be covered by Grameen Companies. The partnership seemed to have been successful as both parties brought different sets of desires to the firm. Apart from providing nutrition at affordable prices to the rural population, the joint venture has helped to create independent businesses and several hundred jobs in the farming, food processing, sales, marketing and distribution sectors. But with such endeavors come complications. Despite operating under the assumption that profit comes as a secondary priority; Danone and Grameen cannot sustain such a huge endeavor for a long time without considering an increase in price and operational costs. Another complication comes in doing business in an impoverished country in which their population cannot afford to pay for basic food staples and now is being offered what can be considered a “snack” in many other

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