General Mills Case Solution & Answer

General Mills Case Solution

Economical Factor

The company can also decrease its market demand if there is an economic fluctuation in the country, which means that if the local currency devalues overtime, then there will be a serious threat to General mills to increase its price level. On the other hand,if there are some local brands that hold the market of at least 50%, then it will be difficult for the company to achieve its brand recognition if it is not producing locally.

Social Factor

When it comes to the social factor, General Mills have 6%control of the international market with most of the shares from the United States. It has different kinds of products to serve in the selected regions.Moreover, it provides all kinds of product to people of different ages. Geographically, its products are successful in developed economies as people are so busy that they do not have enough time to prepare the meal. Many companies like General Mills offer the same kind of products to their customers with no age limit therefore,it can be a threat to General Mills for not providing such foods unlike by other companies according to the customers demand.

Technological Factor  

Every company is increasing its revenue by providing the best solutions for its customers. In this case, solutions can be innovative products that they use serve to the customers. Without any technological efforts, a company cannot survive to deliver to its consumers. In this era, due to the help of technology, it has become easier for companies to grow such as Unilever, Nestle and etc. General Mills is facing a threat from different competitors due to technological efforts as they provide best solutions as compared to General Mills. Technology has changed the entire world and it can be a threat to some industries as they do not have enough resources to upgrade new technological solutions.

The above analysis shows that company has some opportunities as well as some threats to face. Firstly, if we look at Political factor, then we see that General Mills cannotsurvive in the foreign country where the tariffs are too high and local brands dominate are dominatingthe international firms. It is expected that the management of the company has theopportunity to expand its operations by introducing them in the countries where the political intervention is quiet low. This will help General Millsto increase its social responsibilityover its customers. Moreover, it hasalready been innovative with its products therefore,if it is possible to introduce new technological solutions to existing consumers, then it will be a huge advantage for itto overcome its competitors.

Industry Analysis

Michael Porter’s Five Forces

Bargaining Power of Supplier

General Mills purchases its raw materials from different sources locally as well as internationally. In this case, suppliers have the pricing power to supply raw material in food industry. On the other hand,if we look at the emerging countries where agricultural sectors are strong as compared to developed countries, then it will be disadvantageous for General Mills to not to take advantage of those countries where its operations do not exist. Locally,the company is strong enough to purchase raw materials at cheaper price from the farmers and produce them in order to get solutions for its customers through its products.Therefore,the power of suppliers can be considered as moderate as General Mills has only been connected to limited suppliers in North America and some regions in Canada because of less operational expansions. (16 Countries)

Threat of new entrants

Every food company has the advantage to run its operations in different countries by merging with local firms. Brand loyalty is considered to be the most powerful factor of every company that wants to pursue its operations in different countries. General Mills has the reputation in the field of consumable products. Although it is not successful to expand its operations in the world however, it has the opportunity to expand because of already brand recognition. The risk factor is very low for it to enter in new markets due to the already dominated local brands……………….

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