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Case - Danone Danone is a large company that sells its products including Activia yoghurt and Actimel yoghurt drink, as well as Evian, Badoit and

Case - Danone Danone is a large company that sells its products including Activia yoghurt and Actimel yoghurt drink, as well as Evian, Badoit and baby food, including Milupa, to 700m people worldwide. It aims to achieve its mission to 'bring health through food to the largest number of people' by selling to lbillion people by the end of 2011. Danone sells various products that are classified into four categories: Fresh Dairy Products, Waters, Baby Nutrition and Medical Nutrition. Obviously, the major business line or core business of the company is the Fresh Dairy Products (FDP), which is why we have decided to examine in more details this sector of activity. The top three players (Danone, Lactalis and Nestle) only accounted for 11.8% of the total market value in 2011. This means that this industry has a large number of competitors. However, Danone uses advanced technology to create healthier and better products like rich and nutritive baby products. The key suppliers to this market are dairy farmers and big firms try to reduce the risk of milk price fluctuation by wholesale buying. On the other hand, the power of large buyers such as supermarkets is high because there are \"a few number of large buyers\" Luckily, Most of the countries in which Danone operates or plan to operate are politically stable. The inflation rates are now declining in the developed nations and most of the nations are showing rise in GDP and the rate of unemployment is also stabilizing. There are new laws coming up regarding environmental protection, health and food safety laws for example in Chicago there is 5 cent tax imposed on bottled water. Also, the carbon emissions need to be reduced by using eco-friendly products to keep environment clean and green. Answer the following questions after reading the above case: 1.What Micro environmental factors are affecting DANONE's way of doing business? Clarify your answer using examples from the above case. 2.1dentify the Macro environment elements that Danone is facing

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