FRANCE: DANONE AND GLOBALISATION
Article Abstract:
In order to make 30% of its total turnover outside of Western Europe in 2000, and to increase this rate to 40% - 50% in the following years, Danone must compensate for a lower margin (7.5%) in emerging countries where it intends to increase its presence in the future, by increased efficiency in Europe where its margin has already reached 10%. In an interview, Franck Riboud spoke of the importance of a quick-reacting flexible local industrial presence, as in Russia, and a presence in several countries in the same region as in Latin America, in order to cope with problems of political, economic, and monetary instability, and to crises. However, the influence of emerging countries remains minimum in Danone, which still makes 76% of its total turnover in the European Union, including 37% in France. Local installations are part of Danone 's strategy in order to gain acceptance as a world brand, with the objective of making the biggest turnover possible with the fewest number of brands. Danone is the world leader in chilled dairy products, with a 15% market share, compared with a 4% market share for the second largest, and it is also the world leader for sweet biscuits and ranks second in water with its Evian brand. Being number one world wide is not enough for Danone, which has made it a point of honour to dominate its different local markets, far ahead of the others, enabling it to be the strongest in all domains - advertising, research, logistics, and negotiations with retailers.
Publication Name: MOCI
Subject: Business, international
ISSN: 0026-9719
Year: 1999
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FRANCE: SULKY BUREL REVIEWED
Article Abstract:
Changes in the Common Agricultural Policy in Europe should result in a limitation in equipment projects by farmers, which shall impact the industry, Sulky Burel expects. The French manufacturer, a specialist in sewage and sowing equipment, has installed a bureau in Budapest as Eastern Europe is believed to offer the best opportunities in its business. The company, which makes 21% of its total turnover in export markets, avoids investing too much in those foreign markets which remain economically fragile in spite of the strong development of agricultural farms since 1989. The company, which recently completed a FFr 12mn investment to increase the capacity of its plant of Chateaubourg
Publication Name: MOCI
Subject: Business, international
ISSN: 0026-9719
Year: 1999
User Contributions:
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