Case Study
Case study : partnership
Introduction: Danurex is a multinational company located in a European country. Dannurex is manufactures for consumers good and the company owns several brands popular in France.
As France was a key foreign market for the firm, In the early 1990s the top management for Danurex company decided to merge their several separate French business offices into one single head office in france .
Internal factors:
The company decided that all local companies were to move to a new office built in the suburbs of Paris
Danurex : (The Company) also want to create a single corporate culture and to eliminate some old local brands in order to bring most products under the umbrella of the Danurex.
This strategic was difficult and hard to undertake as the company have many suppliers and many brands located in different European Country.
So the management of Danurex thought that the only way to success is to change their purchasing strategy .therefore, a new department was created for gathering all buyers from the different local companies. Which mean one sourcing manager per line of products .operated and headed by one purchasing director for the entire French market.it was further decided to launch a major partnership project, the first goal was to select a very limited number of suppliers that would supply one line of products to all of Danurex business. The idea was to bring them together with a few suppliers instead of each local company having their own suppliers.
The second goal of the project to reduce supply costs
As so many changes were introduced at the same time, it was decided to implement the partnership concept slowly so the company start with products that had little impact on the mean company’s brands. The packaging used for transportation made of corrugated cardboard.
External factors:
Papirex is a also one of the major Scandinavian packaging supplier, saw the possibility of increasing their market share in france . Therefore the
Introduction: Danurex is a multinational company located in a European country. Dannurex is manufactures for consumers good and the company owns several brands popular in France.
As France was a key foreign market for the firm, In the early 1990s the top management for Danurex company decided to merge their several separate French business offices into one single head office in france .
Internal factors:
The company decided that all local companies were to move to a new office built in the suburbs of Paris
Danurex : (The Company) also want to create a single corporate culture and to eliminate some old local brands in order to bring most products under the umbrella of the Danurex.
This strategic was difficult and hard to undertake as the company have many suppliers and many brands located in different European Country.
So the management of Danurex thought that the only way to success is to change their purchasing strategy .therefore, a new department was created for gathering all buyers from the different local companies. Which mean one sourcing manager per line of products .operated and headed by one purchasing director for the entire French market.it was further decided to launch a major partnership project, the first goal was to select a very limited number of suppliers that would supply one line of products to all of Danurex business. The idea was to bring them together with a few suppliers instead of each local company having their own suppliers.
The second goal of the project to reduce supply costs
As so many changes were introduced at the same time, it was decided to implement the partnership concept slowly so the company start with products that had little impact on the mean company’s brands. The packaging used for transportation made of corrugated cardboard.
External factors:
Papirex is a also one of the major Scandinavian packaging supplier, saw the possibility of increasing their market share in france . Therefore the