Create an Implementation Plan, Strategic Controls, and Contingency Plan Analysis for General Mills Including:
• Objectives
• Functional tactics
• Action items
• Milestones and deadlines
• Tasks and task ownership
• Resource allocation
1400 words, Here is the information from the previous assignment leading into this paper…
Business-Level Strategies
Differentiation Strategy
The business-level strategies implemented by General Mills focus on the commitments and actions that exploit their core competencies to obtain a competitive advantage in product markets. The choices made in regards to how they compete in commodity markets are linked to their strategies for performance and also tied to long-term performance (Hitt, 2015). With over 100 brands in the Food service Market, General Mills utilizes the differentiation strategy with the focus centered on all brands in the market, rather than one particular label. Top executives in all departments throughout the firm, place significant effort into ensuring that each of the brands quality and consumer loyalty continues to improve. This commitment to each brand’s success and improvement drives the competitive advantage in the marketplace. While the price of the products are similar and competitive to competing brands the focus is not on being the lowest price in the market but instead delivering product quality and consumer satisfaction that will in return succeed at achieving brand loyalty and repeat purchases by customers.
Need for Constant Re-evaluation
The intense competition within the Food service market and increasingly diverse consumer preferences increase the need for General Mills to evaluate and adjust their strategy as needed regularly. While cost structure is not the primary focus, the broad market and competition of similar products make it necessary to continually evaluate the cost structure and differentiation strategy to remain strategically placed apart from the competition.
Corporate Level Strategies
Highly Diversified
The corporate-level strategies are the actions that General Mills undergoes to gain a competitive advantage and put into place new strategic positions to increase the overall value of the firm. The value created in the established business strategy is critical to the success of the corporate-level strategy. It is this strategy that a company can earn above-average returns through value creation (Hitt, 2015). The corporate-level strategies at General Mills are highly diversified with a focus on innovation and value creation. In 2016, General Mills Net sales reached $16.3 billion with $10 billion alone stemming from product categories meals, cereal, snacks, baking products, and yogurt. Product categories are regularly reviewed to ensure that the strategies in place are capable of creating value and successful in creating profits while utilizing the maximum innovative process while increasing sustainability and giving back to those in need (See Appendix A), (Annual Report, 2016). The ongoing success of the company for the previous 150 years stems from the response to consumer change and demand recognized by General Mills Management, and the fast-response to make necessary changes and innovations to adapt and create further value in response.
Consumer First Strategy
2017 marks the beginning of the focus on the new Consumer First Strategy at General Mills. As a consumer focused strategy, General Mills will work harder to develop a deeper understanding of the needs of their customers, and in response make it a priority to act quickly to deliver changes. Also, a more strategic approach will be taken to their portfolio, level of investments and the growth expectations across General Mills Businesses (Annual Report, 2016).
Global-Level Strategies
Emerging Opportunities
General Mills utilizes a global-level strategy to sell goods outside of the U.S. Domestic Market. Sales in the global marketplace provide benefits to the organization including an increase in market size, increased economies of scale and localized location advantages (Hitt, 2015). As seen in the diagram above, $4.3 billion of the $16.3 billion earned in 2016 (See Appendix A), or 26% was achieved in international markets. While 43% of this revenue was collected in European markets, Canada and the Asian/Pacific Market brought in an additional combined 42% of that revenue (See Appendix A). The strategy for international platforms surrounds five platforms including yogurt, ready-to-eat cereal, convenient meals, super-premium ice cream, and snacks. With 82% of International sales coming from these categories, these are the organization’s focused strategy for International Markets, with a focus on millennial, older adults, and the growing middle class. (Scroeder, 2014).
Recommendation
E-Commerce
General Mills over 100 brands available all around the world. The company focuses on their consumers and innovation to keep up with customer changes in tastes to “nourish lives,” but must also continue to adapt to the changes in consumer buying habits. My key recommendation is that General Mills focus their innovation efforts not only on the products but the product distribution efforts as well. With online shopping like Amazon Pantry, Walt-Marts online ordering I feel that there is a productive opportunity for General Mills products in the online markets. Consumer’s lifestyles are busy, with many looking for the convenience factor in their daily activities.
Customer Advantage
The introduction of E-Commerce will benefit elderly individuals who have difficulties getting out and going to the store, those without a vehicle, and customers who are dependent on transportation to get them to their destination. This E-Commerce availability will also benefit new mothers, as well as families with multiple children and look for the convenience factor to save time and resources. This recommendation would be a new, and innovative idea not only for General Mills but the industry and provide a competitive advantage over the competitors in the market. Becoming readily available at consumers fingertips through mobile devices, laptops or wherever Wi-Fi access is available could be a fresh new idea with the potential for growth in sales, cash flow, and shareholder returns.
Implementation
For this strategy to be a success, the company could offer ordering services through their online website, a mobile app, or a partnership between a retailer offering delivery services such as Amazon or Walt-Mart. Once this is established, delivery and promotion of the services will be promoted through marketing efforts. The unveiling of this new strategy would need to require commitment throughout the entire organization on a corporate-level. As a corporate-level strategy to create a presence in the e-commerce environment, General Mills will use a core strength of offering their already established products into a new environment, to create an online presence to strengthen their market shares and unveil their latest consumer-focused innovation.
