Business sustainability Case Study - Danone
Danone is a leader in the global food and beverage industry, offering product lines ranging from dairy and plant-based products to water. Danone also happens to be a brand with one of the largest plastic footprints, which has been heavily criticized. However, through meticulous efforts and conscious initiatives, the company has built a strong brand on sustainable food values. Given their wide product range, their sustainability policies are also varied enough to complement their widespread impact. "It is increasingly vital for companies and brands to realize that the path ahead is one of technological investment, sustainable development, and high quality in all aspects of product production, packaging included", says the CEO Andreas Ostermayr.
Finding Sustainability Strategies That Work For You\
According to Danone's CEO, Emmanuel Faber, "Consumers are craving change. They expect large organizations like Danone to bring our scale of impact to change the world for the better." Danone took multiple strides in the sustainable direction in 2018. They introduced new plant-based products, made drastic changes to their packaging, and announced their 2030 sustainability goals to green their products even further.
As of 2018, 87% of Danone's total packaging (and 77% of its plastic packaging) was reusable, recyclable, or compostable. At Least 50% of its water volumes are sold in reusable jugs. The F&B giant is taking greater strides toward the circular packaging model with the following goals
Launch 100% recycled PET bottles in all our major water markets (by 2021)
Reach 25% of recycled material on average in plastic packaging by 2025, 50% on average for water and beverage bottles, and 100% for Evian bottles (by 2025)
Offer consumers bottles made from 100% bioplastic.
Beyond the packaging phase of implementing a circular economy, Danone has also emphasized the importance of investing in the infrastructure of waste management systems. Danone and the Danone Ecosystem Fund have launched projects to support waste pickers in 7 countries. Through this project, they have ensured safe working conditions, appropriate wages, and social protection. By 2018, close to 6,000 waste pickers were professionally empowered, and more than 45,000 tons of waste were recycled yearly. To further express their support for the circular economy model, they invested $5 million dollars in the Closed Loop Fund to finance the recycling and circular economy infrastructure across North America.
Danone's annual progress report proves that their efforts to make sustainable improvements did not go unnoticed.
Takeaway: Environmental Impact Reporting is Key
The transparency with which Danone regears its supply chain and takes on new environmental commitments shows its dedication to delivering the best customer experience possible. Their effort to make their products and processes sustainable is driven home through their consistent communications. The in-depth reports and PR announcements on initiatives taken to help their consumers lead more sustainable lives help build the association of customer consideration. By keeping its consumers in the loop, the brand has established a deeper connection with them. The consumer has every reason to believe that the company really does want what is best for their own health.
The more Danone experiments with environmentally beneficial innovations and communicates the same with its consumers, the more appealing the brand grows. They have made commitments related to carbon emission reduction, sustainable product packaging, food security, sustainable agriculture, and more. The increasing number of commitments to newer environmental innovations serves as a testament to their higher vision of providing consumers with the best possible product and consumer experience.
Question:
1. Develop a case report for Danone
2. Describe the Case and Identify Major Issues
3. The case report must integrate your concepts, Connections to Course Readings, Material, and Research
4. Provide a detailed analysis, providing an insightful review of both operational and insightful aspects of the case.
5. Provide well-documented, reasoned, and excellent strategies for issues and proposed solutions that are implementable.
6. Provide all resources and references
7. General Guidelines for Case Studies
A case study is a short description of a real business situation. Analyzing case studies gives you the opportunity to apply concepts you're learning to real business problems. Cases are generally written for several types of analysis. Usually, there is no "right or wrong" answer. Rather, cases provide a vehicle for you to demonstrate your understanding and ability to apply course concepts and theories. You must use appropriate sources (properly cited) to support your position. Check your analysis by assessing how well it demonstrates your subject knowledge. If your answer relies solely on your 'impressions' of the topic, it is likely that the analysis is not your best effort. Simply answering the questions which are part of the case is not enough; consider the questions to be clues to the important concepts and facts. You are strongly encouraged to use the following outline so that your analysis is organized appropriately:
1. Identify both the key issues and the underlying issues. In identifying the issues, you should be able to connect them to the business principles which apply to this situation.
2. Discuss the facts which affect these issues. The case may have too much information. You should filter the information and discuss those facts which are pertinent to the issues identified above.
3. Discuss your tentative solution to the problem and how you would implement your solution. What actions would you propose to respond to the situation, based on the knowledge you have gained in this course? You should draw on knowledge gained in your readings, experience, and coursework (in this course and others) to support your response. You should also draw on other references such as business periodicals and relevant journals. Remember that an analysis is more than simply a summary of the Case Study.
4. Discuss follow-up and contingency plans. How will the organization know that your proposed solution is working? What should they do if it does not work?