Strategy Implementation in an International Food and Beverage Company Case Study

Strategy Implementation in an International Food and Beverage Company - Case Study Example This paper illustrates that one of the strategic plans adopted by the company under the leadership of Frank is market control and dominance that has enabled the company’s presence to be felt in different parts of the world. In line with this strategy, the company has been involved in a number of partnerships and mergers with different food companies in different parts of the world. In 2007, the company entered into partnership with Kraft Company to market its products especially the biscuits. This partnership enabled the company to make significant inroads into different markets in Europe. In the same year also witnessed the opening of new markets for its baby and clinical nutrition products when it entered into a marketing partnership with Numico, a Dutch-based company. Frank relates their acquisition strategic plan to the significant increase in sales that the company has enjoyed especially in 2012. The transformation of the company’s geographical profile and areas th at it continues to lay emphasis in has also resulted into changes in its market shape. Frank confirms that currently, majority of their sales come from different parts of Europe and this accounts for 40%. ... Today, food and beverage products from different multinationals including Danone are shipped to global markets. The prices of such products are determined by the global market demand and supply and such determines the strategies adopted by these multinationals. Operations within the global arena have a number of benefits to a business that holds significant potential in the success of such organizations. It creates new market and niche for the companies as they venture into new regions thus increasing a company’s international presence. Global market operation also increases the publicity and dominance of a company’s brand that increasing recognition and acceptance across different regions in the globe. Cross-border integration as practiced by Danone has opened up new markets for its products in different regions including the Dutch markets. As most of these products target nutritional and clinical markets, Danone has been enabled to increase its services to different parts of Europe. However, a slight variation may exist between the receptions that the four products produced and marketed by the company may receive in the global market. Fresh dairy products and water has met stiff competition in the international market from other companies that specialize in similar goods within the global markets. However, the baby and medical nutrition products marketed by the company have received a much different reception due to the strategy the company has adopted in the global market. For example, while introducing the products in the Netherlands, the company used Numico, a Dutch-based FMCG company to introduce its products into the market.