5.5.4 Threats135.6 Ratio analysis146 Conclusion14 References157 Appendix 117Aims and objectivesThis report is intended to analyse the resource and capability of the Danone group. The report also aims to carry out an analysis of the financial ratio of the Danone group (Group, 2013). Introduction Danone is a food company that manufactures health products such as fresh dairy, baby food, waters, and medical nutrition. Danone Company primarily operates in 140 countries and its headquarters are mainly located on Paris, France. Danone started their business in Barcelona in 1919. They have since been growing fast by increasing their offer to their customer base with a core objective of meeting the consumer expectations.
It is estimated that their full year sales increased dramatically by 4.8% to hit €21,298 million in 2013. Almost half of their sales were generated outside the European region. Part 1: Importance of Capabilities and How They Contribute To Competitive Advantage at Research in Motion. CapabilityBrahma (2011) suggested that the resource and capability are important factors. For a company to succeed it be should both valued and rare in order to reach the competitive advantage.
Capability includes the ability of the organisation to meet the client’s needs without necessarily struggling as per the set traditions. Capabilities may also be economic, strategic and technological through uniqueness that the organisation has been bequeathed with. Strategy Danone’s strategy is to provide their staff with the opportunities to attend different trainings in order to gain information with the latest knowledge management systems. It will be of great help to the company to have their own knowledge management culture which may be introduced to new employees too.
By so doing, the staffs will gain confidence when they have a clear strategy which will help them to fulfil their core objective. As well the company will compete with the rivals when their employees are capable of innovating more new products to sustain them on the competitive edge (Celine, 2013). Planning helps the company to implement their strategy so as to improve the staff knowledge management and expand their businesses. The company has also developed strategy of staff recognition as a way of fostering and maintaining a good relationship between employees and the organization’s management.
As a result the line managers have a clear vision on how to achieve their goals and objective by supporting their employees as a way of allowing them to contribute on the company’s growth. This helps Danone to set their strategy clear and use it as tool to be on the competitive advantage and being suitable in this stage. Competitive AdvantageNowadays most companies are competing with their counterparts using different techniques like differentiation and cost leadership both aimed at helping them to achieve a competitive advantage as a means of sustenance (Brahma, 2011).
The primary resource-based view is defined by a different founder Penrose (1959). In her research, she suggested that resource-based view has different kind of resource approach such as the managerial skills and other professional skills. Wernerfelt (1984) clearly described the resources of an organization as tangible and intangible asset which aids it to obtain a competitive advantage in accordance to the assets they own and how they used them (Brahma, 2011).