...1.0 EXECUTIVE SUMMARY General Mills is planning to launch a new ready-to-eat whole grain children’s cereal called Pirate Oats. Pirate Oats will be the first cereal of its kind offering the health benefits of whole grains while still being preferred by the target market of American children under the age of five. Children will favor Pirate Oats because of the cartoon mascot Captain Grain pictured on the front of the box. Parents will love Pirate Oats because it will keep their children healthy and at lower risk to develop childhood obesity and type two diabetes. This is because Pirate Oats will be lower in excess sugar, and higher in whole grains, than the competition. Pirate Oats will be marketed through an advertising campaign on popular children’s after-school television shows on networks such as Nickelodeon and FOX. First year marketing efforts will result in revenues equalling 10% of the target market as well as a 2% total market share gain for General Mills within the ready-to-eat breakfast cereal market. Achieving these goals will allow General Mills to reliably turn a profit within the first year of sales. 2.0 SITUATION ANALYSIS General Mills has long been a standard in the ready-to-eat breakfast cereal marketplace. It has many cereals marketed to, and designed for children, and has enjoyed a healthy market share to date. With the recent health food craze, the rise in childhood obesity, and poor diet being blamed for heart disease, type two diabetes, as well as cancer;...
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...General Mills case study Concepts A) General Mills is a global food company. The main products of the company are baking products, frozen products, ready-to-eat cereals, snacks, etc. The company sells its products to supermarkets, groceries, and wholesalers. The company makes money by introducing new products in the market. B) The financial statements that are commonly prepared for external reporting purposes are balance sheet, statement of cash flow, statement of shareholder’s equity and income statement. The title General Mills give these statements are General Mills inc and Subsidiaries consolidated statement of earnings i.e. Income statement and consolidated balance sheets, consolidated statement of cash flows, and consolidated shareholder’s equity. Consolidated means combined financial statements of a parent company and its subsidiaries. Company’s financial statements give an aggregate view at the financial position of a company. Parent company and its subsidiaries help to determine position of an entire group as opposed to one company’s standalone position. C) In US, publicly traded companies must file financial statements with the SEC – Securities Exchange Commission. The 2 main compulsory filings are:- Form 10K – the audited annual report that includes the four financial statements with explanation and analysis of financial results. Form 10Q – the unaudited quarterly report that includes summary version of the 4 financial statements and disclosures. D)...
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...touches various aspects of the Fabritek Corp business. It summaries the issues and determines the underlying causes of the problem. The document also discusses about ethical issues within the organization. Fabritek Corp. HIRAL MEHTA This document touches various aspects of the Fabritek Corp business. It summaries the issues and determines the underlying causes of the problem. The document also discusses about ethical issues within the organization. 08 Fall 08 Fall Introduction Fabritek Corporation is a traditional job shop, which specializes in machining castings. Fabritek Corporation received a contract from Pilgrim Corporation for delivery of 17,000 units of a critical engine part over a period of 6 months or until the order is fulfilled. 8 main operations were involved in making castings for Pilgrim Corporation. 1. Unpack and visually inspect purchased casting1 2. Mill Cut 1: Rough-mill the bearing surface 3. Mill Cut 2: Finish-mill the bearing surface 4. Mill Cut 3: Mill the face 5. Mill Cut 4: Mill the keyway 6. Drill eight holes 7. Finish-grind the bearing surface 8. Final inspection and pack To fulfill its order Fabritek designed in operations in following manner. Material Handlers Material Handlers Drilling and Grinding Operations Drilling and Grinding Operations Mill Cut 4 Mill Cut 4 Mill Cut 3 Mill Cut 3 Mill Cut 2 Mill Cut 2 Mill Cut 1 Mill Cut 1 ...
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...General Mills (NYSE: GIS) is not just a cereal maker, it is one of the largest packaged food producers in the world. Starting as a successful flour mill near the Mississippi River, it has grown to own some of the most recognizable brands, including Cheerios, Wheaties, Progresso Soup, Hamburger Helper, and Fruit Roll-Ups. Some of its #1 and #2 market-leading brands are Better Crocker, Gold Medal, Green Giant, Pillsbury, and Yoplait. General Mills operates in more than 130 countries worldwide and divides its business into three core segments: U.S. Retail (70% of revenue through major retailers), international (18% of revenue and supported by a joint venture with Swiss food giant Nestle SA), and bakeries and foodservices (12% of revenue). Currently, it’s growing its reach from grocery stores into new channels like super centers, drug and discount stores, and convenience stores. It is also expanding quickly into growing markets such as China, Russia, and Latin America. The goal of General Mills is to be among the most socially responsible food companies in the world in addressing the interrelationship of economic, environmental and social value. In 2012, they have reported continued progress in advancing their goals specifically in the health, environment, and sourcing areas. They have improved the health profile of their products again due to the increase of healthy and organic food choices, and have decreased natural resource consumption in global supply chain operations...
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...Statement Analysis and Valuation Spreadsheet Income Statement-66 This case starts with raw financial statements and then a) develops standardized financial statements, b) constructs a statement of cash flows, c) builds all the key ratios, d) links forecast inputs to future financial statements, and e) builds discounted cash flow and residual income valuation models based on the forecasts. The result is a simplified version of eVal4, the spreadsheet model that is provided with “Equity Valuation and Analysis” by Russell Lundholm and Richard Sloan, but one that you should completely understand (because you built it yourself!). To save you some time, many of the cells are completed; you only need to finish the blue-shaded ones. There are five parts to this case, corresponding to the five tasks listed above. The case requires two files: Building eVal4.xls and General Mills 10-K.pdf. Part A: Standardized Financial Statements The financial statements filed with the SEC are not standardized, meaning that the company is free to report and label line items however they please (within obvious limits). For this reason, there is an intermediary business that takes the filed financial statements and sorts the line items into a predetermined set of accounts. We will explore this important part of the reporting process in this part of the case. 1) Find the “as reported” financial statements in General Mills’s 10-K filing (in the pdf file). Compare the results with the Financial...
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...Q1. What are General Mills’ motives for this deal? Please estimate the present value of cost savings. There are several motives for General Mills to acquire Pillsbury as discussed below; - Synergistic effect General Mills management might believe that the business of these two companies is supporting each other or basically so-called synergy. The synergistic effect will benefit both General Mills and Diageo. By acquiring Pillsbury, the company will become more powerful in the competitive market. This could be achieved through combining or sharing the resources, capital, and technologies of both firms. This would eventually result in higher and better efficiencies and increase in production capacity for any future expansion. When the combined firm is bigger, they would absolutely have higher bargaining power over the suppliers. The raw materials could be bought at lower rate than before. - Reduction in competitive forces and competition Upon acquiring the Pillsbury, the company will obtain greater market share among the other rivals in the industry. The company will have more flexibility to control over the pricing strategies, thus might be able to increase profitability. In other words, the selling and marketing will be more efficient. - Future growth and expansion The acquisition will allow General Mills to double its size. The brand will be added more than before acquisition. The company can basically gain more shelf space in the supermarket...
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...INTRODUCTION The link between Utilitarianism Theory and the James Hardie Industries – ‘asbestos’ case has helped me to develop a deeper understanding of the difficult ethical questions asked in business and how corporations respond to those questions using moral philosophies. From the time when the short summary written in regards to the meaning and importance of the term ’responsible business’ in week 2, till today, I have explored various historical, moral, governance and economic aspects of business both domestically and internationally, proliferating my knowledge in regards to responsible commerce. I have come to understand the moral landscape or commercial enterprises which have helped me to appreciate the social and ethical dimensions of the business culture. The analysis of the James Hardie case and the Utilitarianism Theory depicts my knowledge growth. In doing so, I am able to now make more informed business decisions for the benefit of both myself and the wider society. JAMES HARDIE The history of asbestos in Australia and around the world is a history of cover up with companies choosing to ignore the dangers for as long as possible. Asbestos causes significant health problems, most notably lung cancer and mesothelioma, a type of cancer that affects the lining of the heart and lungs. Exposure to the fibres over a prolonged period – such as in the workplace – increases health risks significantly. The mining process was just the first stage of damaging contact...
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...In the case of Cassandra and chemotherapy, the central moral tension is Cassandra having her life preserved and having being strapped down to receive the replacement of the tube used to administer the chemotherapy drugs. She wants to protect her human life especially her adolescent life when it has a disease, she just doesn’t want drugs going into her body. An adolescent like Cassandra wants to do what they think is right for their body. Another concern is the doctors having the values of being able to make informed decisions about her medical care. Perhaps their not really going to listen to a minor when it comes to their health. For example, she still has the Chemotherapy scenario she never wanted to go into her body. But, however, in this...
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...Utilitarianism and Business Ethics INTRODUCTION Welcome to philosophicalinvestigations - a site dedicted to ethical thinking (rather than one page summaries!!! Though I'm afraid I do add those at exam time - market pressures!). I hope you enjoy this case study which also has a powerpoint that goes with it. There's plenty of other useful material on this site - case studies, handouts, powerpoints and summaries, and also I have written a number of books including best-selling revision guides and a useful book on 'How to Write Philosophy Essays". Click here for details. If you're worried about exams you might at least print out my strengths and weaknesses summaries under each moral theory. I deliberately quote only from my five favourite ethics books, click here to find out which they are - because you might like to buy one of them to supplement your study. Of course, it's important to quote the philosophers themselves in their own words - see my handouts, or for what academics say about them - see the key quotes section under the topic area of each moral theory. And if you'd like to blog on anything in the news send it to me - I'd be delighted to read it and - if it fulfils the criterion of good ethical thinking (!), post it!!!!! Utilitarianism is a normative, consequentialist, empirical philosophy which links the idea of a good action to one which promotes maximum pleasure or happiness, found by adding up costs and benefits (or pains and pleasures). It has two classic formulations...
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...INTRODUCTION It is a well known fact that Nutriset, the French based company which manufactures Plumpy’ Nut, plays a very crucial role in ensuring that children are sufficiently nourished as it has facilities in various countries in the world; for instance, Kenya, Malawi and even Niger, to mention but a few (Mills, 2006). UNICEF is also known to be one International Children’s Organization which purchases about 90% of Nutriset’s production capacity in order to further aid in the facilitation of proper child nutrition (Shaw, 2010). The fact that Nutriset’s production capacity is nowhere near the capacity needed in order to ensure the adequate combating of the ever increasing global epidemic of children malnutrition, it plays a very integral role in partnering up with and also facilitating projects in Africa. This would not be achievable however, if the United States is able to beat Nutriset’s patent (Jhingran, 2001). FACTS SUMMARY Nutriset is at the moment facing immense ethical dilemmas, for instance, if the US beats their patent, it will mean that many people in the respective countries in which Nurtiset carries out its projects will have to lose their employment. In this case, if Nutriset loses its patent rights, many children who were benefiting from the various projects which were being undertaken in their respective countries will have to literally go back to the drawing board as the problem of malnutrition will not be fully and efficiently addressed (West, 2004). On the other...
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...School of Management MGMT101 Introduction to Management Trimester 2, 2014 COURSE OUTLINE ------------------------------------------------- Names and Contact Details COURSE COORDINATOR UNDERGRADUATE PROGRAMME MANAGER Sashi Meanger Garry Tansley Room: RH919, Rutherford House Room: EA105 Phone: 463-6942 Phone: 463-6968 Email: Sashi.Meanger@vuw.ac.nz Email: Garry.Tansley@vuw.ac.nzpaul.singh@vuw.ac.nz ADMINISTRATOR Misa Ito Room: RH1022, Rutherford House Phone: 463-5397 Email: Misa.Ito@vuw.ac.nz Trimester Dates Teaching Period: Monday 14th July – Friday 17th October Study Period: Monday 20th October – Thursday 23rd October Examination Period: Friday 24th October – Saturday 15th November (inclusive) Withdrawal from Course 1. Your fees will be refunded if you withdraw from this course on or before Friday 25th July 2014. 2. The standard last date for withdrawal from this course is Friday 26th September. After this date, students forced to withdraw by circumstances beyond their control must apply for permission on an ‘Application for Associate Dean’s Permission to Withdraw Late’ including supporting documentation. The application form is available from either of the Faculty’s Student Customer Service Desks. Class times and room numbers Lectures: | 10048 | Monday & Wednesday | 8.00 – 8.50am | New Kirk KKLT303 | | 10049 | Monday & Wednesday | 10.00 – 10.50am | McLaurin...
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...Sherry West B6025-P G01 Management Decision Models Dr. Matthew Kuofie Argosy University Module 5 Assignment 2 June 11, 2014 Management Decision Models Assignment- Decision Making Awry This assignment asks you to use decision making using social influence, persuasion and risk taking that went awry. Examine a time when you were involved in decision making that went awry as a result of protocols, social norms or persuasive techniques. If you do not want to use an example from your business or personal experience you can base your assignment on a journal article of your selection. Here are some key words to help you find an article for this assignment: * Decision making * Risk taking * Persuasion * Social heuristics Write a 5–6 page paper in Word format that addresses the following: * Describe a decision-making scenario using your business experience, personal decision making or cited journal article; include an example of the decision-making process, why it was a risk, how persuasion was used, and what the social heuristics were. * Explain the incentives that caused others to support the decision and identify why these incentives were selected. * Identify the risks and the potential decision biases in your scenario. Propose the corrective steps that should have been taken to overcome these biases. If a risk assessment was conducted how did this affect the decision-making process? * Analyze your scenario for what happened in terms...
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...Bentham introduced this moral concept in the 18th and 19th century. The utilitarian’s describes utilitarianism, as “the actions are morally permissible if and only if they produce at least as much net happiness as any another available action”. Also, this paper we would explain the concepts by John Stuart Mill Theory on utilitarianism. History During the 18th century, there was a revolution in Europe that not only affected the industries, but also government regulations like liberty, equality and fraternity. The result of this revolution helped in creating new modernized Europe. This...
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...General Mills’ Acquisition of Pillsbury from Diageo PLC Lauren Sherlock Jason Park JP Zendman 12/9/2009 General Mills’ Acquisition of Pillsbury from Diageo PLC Situation Analysis: In December 2000, management at General Mills (GM) proposed a plan to acquire Pillsbury, a bakedgoods producer, in a stock-for-stock exchange. Pillsbury is currently controlled by Diageo PLC, one of the world’s leading consumer–goods companies. The deal specifies that General Mills is to create and thus issue additional shares of common stock to Diageo in exchange for complete ownership of the Pillsbury subsidiary. If the deal is executed, Diageo will become General Mills’ largest shareholder. The consideration to Diageo would include 141 million shares of the company's common stock and the assumption of $5.142 billion of Pillsbury debt, making the deal worth over $10 billion. In addition, the agreement will contain a contingency, as up to $642 million of the total transaction value may be repaid to General Mills at the first anniversary of the closing, depending on its (20-day) average stock price at that time. Therefore, we must calculate and thus analyze the various costs and savings associated with the transaction to determine whether or not General Mills’ shareholders should vote for the proposed merger. If approved, this will be the biggest takeover in GM’s 136 years of business and General Mills will become the fifth largest food company in the world (Forster, 2002). General Mills Company...
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...Overview of Negligence COLLAPSE Overview of Negligence We started our journey into negligence with Winterbottom v Wright (1842) 10 M &W 109. In that case the plaintiff Winterbottom was working for the Postmaster General as a driver of mail coach supplied by the Postmaster and the defendant Wright was contracted by the Postmaster to maintain the coach in a safe state. One day the plaintiff was in the coach when it collapsed and suffered injuries as result. He tried to sue the defendant in negligence but was unsuccessful. The court held that the defendant already owed a duty of care in contract, it could not also have a duty of care in tort. This case took place during the infancy of the industrialisation in the 19th century when it was in public interest to encourage innovation and technology. Similar social engineering also saw the courts in that era shield employers from actions of injured workers which would explain why the plaintiff did not sue the Postmaster. But the main reason why negligence had such a limited application was because the courts were wary of the potential of allowing unlimited actions. Heaven v Pender (1883) 11 QBD 503 took place some 40 years after Winterbottom. This is an important case because this is where Brett MR tried to establish the general principles of duty of care and expand the concept to be applied in all situations. However the court instead found for the injured plaintiff based on a duty of care owed by an occupier of land...
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