Danone Case Analysis

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Contents 1. Five resources of Danone………………………………………………………3 2.1 Financial resource…………………………………………………………..3 2.2 Decentralization……………………………………………………………..3 2.3 Brands and reputations……………………………………………………..3 2.4 Joint ventures and partnerships…………………………………………...4 2.5 Corporate social responsibility……………………………………………..4 2. High profits of pharmaceutical and tobacco products………………………..4 3. Low profits of airlines……………………………………………………………5 4. Conclusions…………………………………………………………………...…6 1. Five resources of Danone Resources are the most important factor of organizational capabilities, which can indirectly influence the key success factors of industry and firm’s strategy. Resources include tangible, intangible and human resources. Tangible resource is financial and physical resources. Intangible resource is technology, reputation and culture resources. Human resource is skill, capacity for communication & collaboration and motivation resource. 1.1 Financial resource Financial resource is the main tangible resource of Danone. Antoine and Gervais Danone were the founder of Group Danone, who have created the company, and manufacture over 10 more products. Meanwhile in 1996, the products of Danone were sold to all over the world. As a result, Danone has a huge amount of capital resources. 1.2 Decentralization Decentralization is the main human resources of Danone. Among the large multinational corporations, its exceptional level of decentralization distinguishes Danone. And the leader of Danone thought decentralization as a key attribute in pursuing Danone’s strategy of growth. He is true, decentralization allowed Danone to associate its brand and products to the characteristics of local markets. Because Danone is a global company, their products are found everywhere of the world. Different country have different

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