General Mills SWOT

1) What is your opinion on SYLVESTER’S ANSWERS to the Questions below?


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The rivalry degree between competitors. The struggle for market control in this industry is relentless. All the leading and small companies struggle to retain or expand the market share they control. This clamor causes high rates of competitions notably in product pricing and marketing.

Economic and technology PEST factors affect the macro environment for General Mills. Economic factors have a direct relationship with the performance of the business. The prevailing economic conditions in the primary market determine the consumer uptake levels. The economic conditions also affect the cost of product raw materials in that a decline in the economy leads to increase in the cost of materials while a growth leads to dropping in raw material cost. Technology is among the major driving forces in today’s business platforms. It has also grown to be important production factor. Technological progress has occasioned in the development of better and highly efficient production lines. With the incorporation of technology into production, the production costs have significantly dropped, and the business efficiency levels have grown (Needham, Dransfield, & Foundation, 2000).

General Mills’ operations apply Porter’s differentiation strategy. In that, the company has put “championship brands” one of their fundamental values. They strive to create a favorite brand among their consumers by ensuring they create a strong brand presence. Having a resilient brand mane will insulate the company from factors of the market such as competition their products command more loyalty from their consumers. Another element of the differentiation strategy for the company is a quality policy. General Mills give particular attention to the quality of their products. Quality is their primary source of competitive advantage against other players in the foods market. Their product marketing aims to project their products as superior quality when compared to competitor brands.

With respect to the factors present in General Mills’ operation environment, the company is doing well to use technology and other service innovations in their production. The company is currently in a good position in the foods industry being among the top players. Their market control is intact and has managed to withstand the persistent challenge of competition. Their expansion into other regions and nations has served to stamp the company’s authority in the market. On a scale of 0 – 10, the company likely rates at 6. Though they are in a decent position, the role of the external factors is still of a significant impression on the company and its operations. Greater suitability strategies require to be formulated and implemented to match the needs and external factors of the foods industry.


Needham, D., Dransfield, R., & Foundation, E. (2000). Advanced Business. Oxford: Hinemann Educational,

QUESTIONS???????????We focus on SWOT. In order to complete a SWOT, we are required to identify and analyze the key opportunities and threats in the external environment. Then, we need to identify and analyze the company’s key strengths and weaknesses (internal analysis).

During Week 1, you are asked to address the following:

a) Evaluate the operating industry of General Mills using a minimum of two forces included within Porter’s Five Forces model.

b) Using PEST, assess General Mills’ remote environment using a minimum of two PEST forces.

c) Conclude your assessment about the overall environment. Is it more or less favorable for General Mills? Give your ranking from 1-10 (in which 1 = vast gloom and doom for this company; 10 = huge bonus this year!). Where do you think General Mills fits on this 1-10 scale?

2) What is your opinion on RANDALL’S ANSWERS to the Questions above?


a) Evaluate the operating industry of General Mills using a minimum of two forces included within Porter’s Five Forces model.
PORTER’S FIVE FORCES MODEL was developed as a strategic planning tool for corporations in 1979 by economist Michael Porter. The tool uses five forces to determine the profitability of a market for an industry. These five forces are:

1.) Power business buyers or customers

2.) Negotiation power of suppliers or vendors

3.) Threat of entrance of new competitors

4.) Threat of substitute products

5.) Rivalry between the competitors

When conducting and analysis of General Mills based upon an analysis using Porter’s Five Force against #3 threat if entrance of new competitors and #4 threat of substitute, I have identified several threats that Mills needs to guard against.

The infusion of private store brands and the market segments’ increasing preference for less-processed, healthy food
With the growth and expansion of Wal-Mart into the grocery food industry creates concern for all General Mills existing labels. Based upon Wal-Marts business model and market pressure their increasing dominance in the market may force suppliers of food to reduce their cost structure in an effort to reduce prices this will have a counter effect on revenues of General Mills

b) Using PEST, assess General Mills’ remote environment using a minimum of two PEST forces.

PEST analysis is designed to identify the organization’s strategic position as well as to identify the growth or decline of a market. The model uses the following analytical criteria.

1.) Political, 2.) Economic, 3.) Socio-cultural and 4.) Technological.

When analyzing General Mills through the PEST lens I used company threats based on economical and socio-cultural influences. By using this optic General Mills faces the following threats.

Due to General Mills continued reliance on the U.S. market segment they face substantial risk associated with currency rate fluctuations concentrated on the US market. This needs to an over dependence on revenue generated through the US market
Mills is primarily aligned with a declining US market, in order to remain relevant and create expansion General Mills needs to explore increased international expansion based on growing global markets.

c) Conclude your assessment about the overall environment. Is it more or less favorable for General Mills? Give your ranking from 1-10 (in which 1 = vast gloom and doom for this company; 10 = huge bonus this year!). Where do you think General Mills fits on this 1-10 scale?

The General Mills Company is a major part of my child hold memories through their commercials and morning breakfast. They are a traditional American company based on American values. In order to remain relevant General Mills needs to expand into global markets and realize these cultural differences and embrace them. My assessment would place General Mills with a score of 7.


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Solution Preview
Sylvester is correct in his assessment regarding how General Mills has been effective in shoring up their product to elicit commitment from loyal customers. One of their most loyal followings involves their Nature Valley granola bars, which are sponsored by several sporting organizations and also popular with the younger demographic. The company uses its market place, which is at top of the marketplace along with 2 or 3 other main brands, to project its focus and identity to consumers. Customers understand that they are obtaining a distinctly different product and experience when purchasing Cheerios as opposed to when …

Solution Summary
The expert gives their opinion of SYLVESTER’S answers. The rivalry degree between competitors are determined.

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