Introduction
The paper is about General Mills, evaluating the potential business opportunities in two countries, Greece and France. General Mills is a major food producer in the United States, and has some operations in Europe. France is a major European market while Greece is a minor European market. This paper will examine the business conditions within and between these two countries in order to provide advice for General Mills' management
Background Information
France and Greece are both part of the European Union trade bloc and the Eurozone currency union. These two countries can only directly trade via sea or air, as there are non-Euro countries in between them overland. There have been issues of late with respect to the Greek economy, which has even brought about speculation that Greece might leave the currency union. To this point, the paper has been produced on the expectation that this will not come to pass. France is a highly industrialized nation, and a major manufacturer for the Eurozone. It is also one of the largest consumer markets in the region. Greece has a much weaker economy, with limited manufacturing capabilities and a much smaller retail market. For production purposes, General Mills needs access to raw ingredients like grain, corn, sugar and dairy products. Many of these are grown in France, with Greece being a smaller producer. France also has superior distribution networks. Politically, both countries are relatively stable democracies.
Cultural
In the field of internationalization of business, entrepreneurs are required to think globally and have an understanding of international culture. Entrepreneurs need the ability to understand different values, beliefs, behaviors and business strategies of different businesses within other countries in order to be successful in internationalization of business. Mars and Ferrero are two world-leading food manufacturers, especially confectionary products. This essay aims to analysis Mars and Ferrero in terms of internationalization and discuss some of the key success factors that has transformed both companies into a truly international group. Both companies have approached different strategies
Success of any businesses organization is determined by factors such as financial, management & operational. Financial factors address use of capital in business and flow of cash through various processes within the organization. Management factors are linked to organizational structure of the enterprise. Whereas operational factors address how available resources are used to achieve objective of the organization. Apart from these three factors, environmental factors like competition also determine success of any business organization. This paper explores transformation that Rogers’ Chocolate Company has undergone since its establishment. The paper also investigates competitive strategy of the company against its close
With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.
The aim of this paper is to investigate the export behaviour of Greece and to identify its comparative advantage. Moreover, through the conclusions of the analysis, is investigated whether the export activity of the country coincides with its comparative advantage especially in the present circumstances, those of recession. Initially, we define the comparative advantage based on the approaches of Adam Smith, David Ricardo's and Heckscher-Ohlin. Furthermore we analyze the current situation of the country, Greece’s economic structure and its trade performance, mainly the
General Mills Chairman and CEO, Ken Powell, has truly become successful in leading a clear focus for General Mills to find solutions in ever-changing consumer food preferences; Mainly, by the food company particularly manufacturing natural and organic food products. For the most part, Chairman and CEO Powell configures General Mills path to manufacturing natural and organic food products typically focuses on innovating and investing to market foods helps to provide new growth for General Mills (Christenson, 2015, n.p.).
Although Blue Ridge Restaurants had success with expansion and joint ventures in Australia, the UK, France, Italy, Brazil and Hong Kong through 1987, many differing factors were at play when Yannis Costas evaluated the market and strategy for the Spain in the 1ate 1990s. Factors described by D. A. Ball, et al, 1, considered relevant in a country screening and assessing market expansion, especially the xx screen, political and legal and the fourth screen, socio-cultural, were not favorable for an aggressive expansion in Spain.
With this strategy, the leaders who make the decisions will be with local business in each country. This would benefit Yogurtland because local businesses know and operate their businesses best. They understand what their customers’ needs are. Also, they would know specific business practices and what’s normal for the people in their area. Customers can evaluate goods that are made in country, in this case, the yogurt and that information will help the business strategy. The Country-of-origin effect refers to consumers using the country where the product was made as a barometer for evaluating the product (Carpenter & Dunung, 2012). One of the only issued foreseen is Yogurtland could face is uncertainty within each single shop. The disadvantage of a multidomestic strategy, however, is that the business faces more uncertainty because of the tailored strategies in different countries (Carpenter and Dunung, 2012) This is because each country that they have expanded to will be structured slightly
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This assignment is about Brasil Foods, the largest Brazilian producer of meat and dairy. Today it has leading position in almost all its domestic sectors and strengthening its presence on the global market due to its potential. The globalization provides company many
The change of macroeconomic situation is an opportunity or threat for United Kingdom’s breakfast cereal industry.
The Possibilities of Expanding the Business into New Overseas Markets As international marketing consultant of Mackie’s of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business into new overseas markets, successfully. The Scottish ice cream market will be researched thoroughly. The UK target market of Mackie’s will be analysed. Finally a suitable country will be chosen to market the product to.
Both companies see an avenue to increase profit margin by creating a healthier brand image and growing their international business. This will help increase their return on equity through higher profit margins globally. Last year, Kellogg acquired Mass Foods and Bisco Misr which are both located in Egypt. They are hoping to expand a lot of their product into Africa through this new avenue. General Mills also wanted to expand globally when they purchased Yokie, a company in Brazil that specializes in organic foods. Each of these companies, as they expand more internationally, faces more and more challenges with the general environment. Each has experienced losses in Venezuela where the currency and economic downturn has affected their sales and overall ROE. Nonetheless, they continue to expand globally where they are
Grolsch, a company with a strong history and a highly rated product, has just been purchased by SABMiller. The company is evaluating its global strategy in light of the acquisition and determining how to position and sell its beer going forward. Grolsch has positioned itself well to compete internationally and has leveraged several tools (e.g. the MABA framework, strategic analysis) to effectively expand abroad. However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue (i.e. developed vs. developing markets), and if their adaptation strategies will continue to be an asset in their business development. The initial conclusion, detailed below,
Based on the country analysis, it is clear that Turkey is a market whose economy is rapidly growing, and the government of Turkey’s new foreign trade policies are open market business friendly. Kraft has been aggressively pursuing to enter the French market by acquiring Cadbury by preparing to bid as much as 18.5 billion. Given this high competition in the French market and the possible over load
The case study for McDonald’s is quite intriguing. It made me realize that I as far as business success rates I was really out of touch. McDonald’s is huge in the restaurant industry, not only in the states but abroad. However, it is quite interesting that this mogul is not always taken well in new places. For example, in India the people are not particularly fund of the food and menu. Originally, the numbers were high until a protest group came out saying that McDonalds was using beef and pork in the food. The choice of beef and pork was unfavorable due to certain religions and this caused numbers to drop.