COFCO

David E. Bell; Natalie  Kindred

Case | HBS Case Collection | January 2016

COFCO

by David E. Bell and Natalie Kindred

Abstract

In 2015, COFCO, China's state-owned agribusiness giant, was working to protect China's food security (a key national security priority) by extending its control of the global food system through overseas acquisitions. At the same time, COFCO sought to grow its market share in China's fiercely competitive branded foods market. To help achieve these goals, COFCO Chairman Frank Ning was driving internal reforms to make COFCO's management more competitive, innovative, and globally experienced. This case allows for a discussion of the Chinese marketplace and the evolving approach to business structures taken by the Chinese government. COFCO is the leading food company in China, and we can see through the case the hurdles faced in transitioning a company from pursuing mostly social objectives to mostly profit making. Finally, the case is a useful vehicle for discussing the question of whether and how China can feed itself. Efficient and reliable sourcing of food from abroad is evidently an increasing, and urgent, priority.

Keywords: China; consumer products; commodities; Commodity Trading; grain trade; globalization; internationalization; mergers and acquisitions; foreign acquisitions; COFCO; Frank Ning; Gaoning; Nidera; Noble; competition; branded products; Food; Markets; Marketing; Business and Government Relations; Agribusiness; Animal-Based Agribusiness; Plant-Based Agribusiness; Policy; Trade; Goods and Commodities; Food and Beverage Industry; China;

Language: English

Format: Print

28 pages

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Citation:

Bell, David E., and Natalie Kindred. "COFCO." Harvard Business School Case 516-057, January 2016.

In the fall of 2019, Sprint’s Chief Digital Officer Rob Roy reflected on the telecom’s efforts to improve the effectiveness of its digital marketing campaigns. Digital media buying had long been handled by an outside agency, but in 2017, Sprint brought those functions in-house to enhance the company’s ability to respond to the market in real-time. Early results suggested the plan was working, but Sprint continued to face fierce competition from its rivals. Sprint’s subscriber losses mounted as it attempted to merge with T-Mobile. Could digital marketing stem the losses and win consumers’ hearts?

Teaching Note | HBS Case Collection | May 2020

Danone: Changing the Food System

David E. Bell, Federica Gabrieli, Daniela Beyersdorfer, Amy Klopfenstein and Aldo Sesia

Teaching Note for HBS No. 520-053.
This is a teaching note for the case “Danone: Changing the Food System?” The case examines the efforts of one of the world’s largest food and beverage companies to resolve the social, environmental, and economic issues within its supply chain. Chairman and CEO Emmanuel Faber and One Planet and Water Cycle Vice President Eric Soubeiran believe that the global food system is broken, and needs radical transformation to save the planet. The case provides an overview of Danone’s efforts to change the food system, including Cost Performance Model (CPM) contracts with dairy farmers and encouraging suppliers to prioritize regenerative agriculture and the ethical treatment of animals. However, it remains unclear whether consumers are willing to pay a premium for sustainably-produced products. At the conclusion of the case, Faber and Soubeiran wonder what Danone should do next to repair the food system. The note contains suggested assignment questions, a sample board plan, and a suggested discussion plan.

Keywords: Food; Goods and Commodities; Agribusiness; Animal-Based Agribusiness; Plant-Based Agribusiness; Strategy; Corporate Strategy; Environmental Management; Environmental Sustainability; Climate Change; Agriculture and Agribusiness Industry; Food and Beverage Industry; Europe; France; Paris;

Citation:

Bell, David E., Federica Gabrieli, Daniela Beyersdorfer, Amy Klopfenstein, and Aldo Sesia. "Danone: Changing the Food System." Harvard Business School Teaching Note 520-066, May 2020. View Details

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