Using the framework discussed in the background readings, critically analyze General Mills’ strategic choices at the Corporate level (remember that “corporate” level is the very highest level of the organization, with lower levels being the “functional” and the “business” levels).
What are General Mills’ corporate-level strategies? What generic Porter strategy does the company follow? Are General Mills’ strategic choices aligned with the Porter generic strategy you believe the company follows?
- Based on the 2018 Annual Financial Report, General Mill’s corporate strategy will focus on putting the consumer first, expanding further into and increasing products across the global market, and increasing efforts and faster response to product innovation in order keep up with the competition. The increased focus on innovation and global expansion will broaden their product portfolio and develop products that will better meet the customer’s needs (Porter’s Generic Strategies, 2007).The Porter’s Strategy that General Mills appears to be in line with the Differentiation Strategy. While their R&D allocations have decreased from $222 million in fiscal year 2016 to $219 million last year, the company is staying committed to developing new products, modifying existing products and packaging to meet the needs of the growing number of health conscious consumers.In an effort to distinguish themselves from competition and broaden their portfolio, in 2018 General Mills acquired Blue Buffalo, which is an all-natural/organic pet food brand that is extremely popular across the country. The report stated that they generated over $1 billion in sales in fiscal year 2018. The previous success of this company should build/expand their portfolio going forward (“Annual Report”, 2018).
- Fiscal 2018 Annual Report. (2018). General Mills. Retrieved from https://s22.q4cdn.com/584207745/files/doc_financia… generic strategies. (2007). Quick MBA. Retrieved from http://www.quickmba.com/strategy/generic.shtml
posted May 20, 2019 12:01 PM
When reviewing the recently published 2018 Annual report General Mills has three key areas identified: “1) competing effectively on all brand and across all geographies through strong innovation, effective consumer marketing and excellent instore executions; 2) accelerating growth on our four differential growth platforms including Haagen-Dazs ice cream, snack bars, Old El Paso Mexican foot, and our portfolio of natural and organic food brands; and 3) reshaping our portfolio through growth enhancing transactions, including the recent acquisition of Blue Buffalo” (General Mills, 2018, p. 20). These three areas call out several items of focus, such as using the term “all brands” in item one while then focusing on looking to obtain growth based on the uniqueness of these key products in item two in hopes that consumers will be willing to pay a premium price for these goods. These differences are best represented by the Focus Strategy as we are looking at “cost advantage” in area 1 but “product differentiation” in item 2 (Porter’s Generic Strategies, n.d.). However the company might be better suited to breaking these strategies into different business areas to more align broadened the usage of Porter’s strategies.
General Mills. (2018, Aug). Fiscal 2018 Annual Report. Retrieved from General Mills: https://s22.q4cdn.com/584207745/files/doc_financia…
Porter’s Generic Strategies. (n.d.). Retrieved Sept 2018, from QuickMBA: http://www.quickmba.com/strategy/generic.shtml