In 1989, the General Mills management team became aware of expansion opportunities in today’s environment of globalization. The stagnation in the cereal market in the United States required the company to expand into new global markets. The philosophy of diversification had for the most part been a success resulting in the expansion into five unrelated industrial areas. Historically the companies’ efforts to branch into some areas outside the food area are of concern. These unrelated areas of growth have been unsuccessful. The resulting financial losses were an impetus of anxiety and concern to the shareholders and brought forth Wall Street skepticism.
It is my opinion that the strategic planning process is flawed. Corporate strategy is and must be the overall managerial game plan for a diversified company; it extends companywide, an umbrella over all a diversified company’s group of business. The crafting of corporate strategy for a diversified company involves four kinds of initiatives and it is evident that these initiatives are successful in related industries since these market related acquisitions have resulted in a net profit increase. Management must be aware that the overall responsibility of corporate strategy is the responsibility of all corporate managers. Senior corporate executives normally have lead responsibility for devising corporate strategy and for choosing among whatever recommended actions bubble up from lower level managers. Key unit heads may also be influential, especially in strategic decisions affecting the businesses they head. Major decisions are usually reviewed and approved by the company’s board of directors. This portion of strategy formulation is on track.
The losses incurred are in my opinion a two prong problem. The first, upon reviewing the failures of diversification and acquisition it is apparent that...
General Mills Company is one of the 500 fortune company in the American, with a primarily food products. The head quartered in Golden Valley, Minnesota of the suburb of Minneapolis. General Mills markets are very know by the brand of Betty Crocker, Yoplait, Colombo, Green Giant, Cheerios, and Lucky Charms. General Mills has had a good history and sold a lot of products along the way. They are the 100 leading U.S brands and numerous categories in the world.
Findings
General Mills History
In the year of 1860’s, General Mills was starting with two flour mills. They had transformed the mills industry of just producing the flour with superior baking in their properties. Around the year 1960’s General Mills were marketing the children’s product. The product they were marketing was Play-Doh, Easy Bake Ovens, Spirograph, Monopoly and Nerf balls. They had associate with characters that was memorable with them was Betty Crocker, Rocky and Bullwinkle, the lone Ranger and the Pillsbury Doughboy after what had happened to the Wheaties. Wheaties was the breakfast of Champions that was sponsoring baseball radio broadcast that the movie script in 1933.
General Mills have a postwar consumer that is interesting in convenience complemented of the adverting efforts. After World II, the company continued to refine the promotion as the Betty Crocker cookbook that was first published in the 1950. The food sales in the second position had research and media capitalize the company that was behind Kellogg.
In 1952, the career of General Mills man name Charles H. Bell had rose to the presidency that was advertising the main force in the marketing of various brands. Bell had found it necessary to reassign the management of decisions closer to the operations. He had moved his headquarters out of downtown Minneapolis in 1950, into the suburban Golden Valley. In the 1940’s, General Mills have ventures into the electronics and appliances that had failed. They
General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best knows product brands are Betty Crocker, Green Giant, Pillsbury, Old El Paso, Cheerios and Haagen-Dazs. It markets its products through its direct sales, broker and distribution a to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores. The company was founded in 1928 and is based in Minneapolis, Minnesota.

GSI’s businesses are organized into three operating segments: U.S. Retail, International, and Bakeries and Foodservice. The U.S. Retail segment includes sales to grocery stores, mass merchandising, and membership stores such as BJ’s, Sam’s and Costco, natural food chains, drug, dollar and discount chains in the United States. The International segment includes products manufactured in Canada and products manufactured in the US that are exported to Caribbean and Latin American markets and products manufactured for sale in the company’s international joint ventures. These products include ready-to-eat cereals, shelf stable and frozen vegetables, dry dinners, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza snacks, and grain and fruit...