Abstract
Within the last decades, globalization has changed the face of the world with a shift from ‘nationalism and protectionism' to the idea of a ‘global village'. A new world economic order emerged and the regional and multinational trade agreements and free trade areas played a key role in this changing worldwide economy. Nowadays, every multinational group that is located in one of the European state members has to take into account the ‘Europe influence' and no strategy is possible without Europe. Danone undertook its global expansion in the early stages of the company. In the meantime, Western countries remained and it still represents the base camp of the company as this geographic area represents the main part of Danone's sales. As a consequence, we can easily assume that the European Union was strongly involved into the company's expansion and success story.
This report is divided into four parts that aim to show how this multinational company is influenced by European policies. Firstly, the analysis will emphasize the EU influences on general business setting so as to provide a general background. Secondly, this report will describe the main EU policies that generate consequences and have an impact in the food industry sector. Then, the idea is to illustrate how the tactical and strategic choices of Danone may be influenced by the EU. Finally, the last part will focus on the ways in which the EU might influence Danone's operational aspects and it will put into evidence the fact that EU policies play an obvious role in the company's strategy.
Before starting the analysis of the company according to the EU influences, it seems relevant to provide a description of Danone so as to get a clear understanding of the background. Danone is a French food-products multinational corporation and this group belongs to the top ten global players in the food industry. The first analysis that has to be undertaken consists of the description of the EU policies that influence the general business setting. This general overview is the first step that has to be done to focus then on the EU policies that influence the sector of our company and DANONE's choices. It seems that the main strategy that should be followed throughout this report is to create the setting and to shift from a general overview to a specific analysis.
The influence of the European Union on the global market and business activity is constantly evolving with significant impact on investment and trade. Nowadays, the major companies in the EU are expanding worldwide so as to become important players. The EU is a regional agreement and supranational union of 27 European member states. A key activity of the EU consists in establishing and representing the administration of a common single market, composed of a customs union, a common trade policy, the single currency (the Euro that created a new business setting) and a common agricultural policy. Danone is a multinational company and has its head offices in Paris. Its worldwide presence and the head office's location explain the fact this multinational corporation is influenced by EU policies.
