...General Mills Inc.—Understanding Financial Statements Teaching Notes: This is the first case we use in our course and it sets the tone. We find that using a company well-known to students piques their interest and gets the course off to a good start. The purpose of the case is to gain familiarity with financial statements and to begin to think about how financial statements reflect economic events and financial performance. Some students need to be reminded that the point of the exercise is not to perform a comprehensive analysis of the company. At this point, most students do not have the required skills. Rather, the goal is one of discovery. Many students find that they understand a lot more of the information in the financials than they thought they would. Others find that the vocabulary bogs them down. They need to be encouraged to learn the language of business. A productive exercise is to have students jot down a few (3-5) items they find puzzling in the financial statements. Then, on the last day of class, have the students refer back to their list. Typically, they understand everything they had on their day-one list. This provides tangible evidence of the value of the course because most students are pleasantly surprised at how much they have learned. The case probes the three basic statements as well as the two opinions issued by the firms’ auditors. This provides the opportunity to introduce the notions of corporate governance and ethics. The case includes basic questions...
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...General Mills Inc.—Understanding Financial Statements Teaching Notes: This is the first case we use in our course and it sets the tone. We find that using a company well-known to students piques their interest and gets the course off to a good start. The purpose of the case is to gain familiarity with financial statements and to begin to think about how financial statements reflect economic events and financial performance. Some students need to be reminded that the point of the exercise is not to perform a comprehensive analysis of the company. At this point, most students do not have the required skills. Rather, the goal is one of discovery. Many students find that they understand a lot more of the information in the financials than they thought they would. Others find that the vocabulary bogs them down. They need to be encouraged to learn the language of business. A productive exercise is to have students jot down a few (3-5) items they find puzzling in the financial statements. Then, on the last day of class, have the students refer back to their list. Typically, they understand everything they had on their day-one list. This provides tangible evidence of the value of the course because most students are pleasantly surprised at how much they have learned. The case probes the three basic statements as well as the two opinions issued by the firms’ auditors. This provides the opportunity to introduce the notions of corporate governance and ethics. The case includes basic questions...
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...Summary General Mills first began as a flour Mill in the 1860’s and since the beginning they have been a successful, innovative company. Throughout the years they have grown to becoming the third largest food company in North America. General mills is committed to diversity, innovation and the relationships they have built. They believe their stakeholders are as important to the company as their customers, keeping them in mind for every business decision made. They have 6 key stakeholders; consumers, customers, partners, teams, shareholders and communities. General Mills believes the success of their stakeholders is a success for the company, every decision they make must add value to for their stakeholders. In 2001 General Mills completed a merger with their long-time competitor, Pillsbury. Both sides of the merger felt this was the best decision for each company involved, General Mills felt it would add value to shareholders, while Pillsbury was just happy the business would stay local. The merger was complete with a $10.5 billion price tag and would total $13 billion in annual sales. The only problem was Pillsbury’s weak performance, causing layoffs for General Mills. The best solution to remedy this problem is for General Mills to get its thinking caps on and come up with a new innovative product line for Pillsbury. It will take time and a lot of effort, but in the end the benefits will improve the new company and get Pillsbury performing at the same level as General Mills...
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...RTE Cereal Case Study Number of Firms and Market Shares There were six firms in the industry from 1950 to 1990 represented in the case study. In 1990 private label firms entered the market. The industry grew consistently through the 21st century but, the Big Three, consisting of Kellogg, General Mills, and Nabisco, dominated the market. Kellogg has consistently dominated the market shares in the RTE cereal industry with General Mills and Post following close behind. From 1950 to 1993, Kellogg’s average market share was 40.3, General Mills was second with an average market share of 21.7 and third of the Big Three, Post, had an average market share of 17.4. There were not any significant changes in the market shares from 1960 to 1980. However, in 1990 Post dropped to 11.1, 4.5 less than the value in 1980, General Mills reached 24.4, 4.5 more than the value in 1980, and Kellogg, still leading the pack, decreased to 37.5, 3.4 less than the value in 1980. From 1990 to 1993, there were not any significant changes in the market shares for the Big Three. There are three other firms listed in the case study that represented the remainder of the market shares. During the same time frame, Quaker had an average market share value of 6.8. Quaker market shares decreased dramatically from 1950 to 1960 but made a steady increase beginning in 1970. Nabisco’s average market share was 5.0. The market shares for Nabisco decreased in 1970 and continued to decrease giving them the lowest...
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...aisle included a common pricing strategy with nothing below two dollars and nothing above five. Their packaging included famous people on the cover along with slim people to target customers that want to be healthy along with famous movie characters on the cover including Star Wars and Minions along with animals and bright colors on the front of the boxes to target small children. The sales that were being promoted included a, “Get a free personalized fitness program” and “Earn up to $200 toward your next vacation” on the front of the cereal boxes. In the promotion strategies, there did not appear to be any puffery or exaggerated claims. Furthermore, there were six different brands of cereal at Meijer including Kellogg’s, Meijer, General Mills, Quaker, Post and Weight Watchers. The different brands were blended together with the top shelf reserved for the small boxes and the bottom shelf cluttered with family sized...
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...Case Study Gauging the Impact of Display and Brand Messaging on the Cereal Category in-store behavior monitoring system Disclaimer: This test was conducted by CART (Center For Advance Retail Technology), in association with ShopperGauge®. Neither General Mills nor any other cereal company provided data or participated in any way with the research. © 2010 BVI Networks, Inc. and Rock-Tenn Shared Services, LLC. RETAILNEXT is a trademark of BVI Networks, Inc. SHOPPERGAUGE is a trademark of RockTenn Shared Services, LLC. CENTER FOR ADVANCE RETAIL TECHNOLOGY and RETAIL 3.0 are trademarks of Hawkins Strategic, LLC. Other marks are the property of their respective owners. Gauging the Impact of Display and Brand Messaging on the Cereal Category Background The goal of this project was to determine whether or not in-line display xturing and messaging increases brand and category sales and drives acceptable ROI. We further sought an understanding of how the unit and messaging would impact shopper behavior, in terms of tra c pattern shifts, dwell times, purchase and interaction with product. The Cereal aisle was chosen for this study. Speci cally, General Mills branded products were designated to be featured in a new xture, accompanied by a meaningful, educational, healthy choice message: “Whole Grain Goodness”. The assortment included products that were currently being positioned very di erently. For example, some are targeted for children using the lure of sweet and familiar...
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...have a bowl of General Mills Cheerios with Anderson Erickson 1% milk. As you munch on your cereal, you begin to look at the side of the box. What ingredients are in Cheerios? How are they processed and made? Who makes them? What does the factory look like? How are Cheerios packaged? What happens to the packaging when you throw the box away? How does General Mills do it all? How do they maintain customer loyalty? How do they manage their products? What is added to the product to satisfy the customer? General Mills’ brands are best known for quality and value added to their products. General Mills not only creates economic value, but it creates social and environmental value in the way it operates. General Mills is one of the largest companies in the world. Cheerios being one, General Mills manages 32 brands that offer various products. Yoplait offers many yogurt products focusing on the “goodness of taste” while supporting digestive health. Progresso offers a variety of soups and beans, as well as pasta dishes. Don’t forget about the Pillsbury crescent rolls at Thanksgiving or the chocolate chip cookies from Grandma’s house. These brands are all run by the company General Mills. As consumers, we sometimes question the entire process of how a product is made. Sometimes we wonder about the business that develops our products and what procedures they go through to create satisfaction for their customers. A ccording to their mission on the company website, General Mills strives to “nourish...
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...Harvard Business School 9-795-191 Rev. February 14, 1997 The Ready-to-Eat Breakfast Cereal Industry in 1994 (A) All is not well in the land of Tony the Tiger.1 In early 1994, the ready-to-eat (RTE) breakfast cereal industry had reached a critical turning point in its evolution. In an industry historically characterized by stability and above average profitability, slowing demand growth and a surge in private label sales threatened to undermine the dominant positions of the Big Three: Kellogg, General Mills, and Philip Morris. The 1993 year-end statistics showed that industry sales growth had slowed to under 2%, while private labels had topped 5% market share by sales and 9% by volume for the first time. Price increases by the Big Three had widened the gap between branded and private label products. The competitors had traditionally avoided destructive head-to-head competition, but this mutual restraint appeared to be crumbling. Each of the firms faced major decisions going forward about whether to break with the industry’s lock-step moves and how to deal with the threat of private labels. History of the RTE Breakfast Cereal Industry2 The ready-to-eat breakfast cereal industry got its start in 1894, when Dr. John Kellogg and his brother W.K. Kellogg invented wheat cereal flakes in an attempt to make whole grains appealing to the vegetarian clients of the Seventh-Day Adventist sanitarium Dr. Kellogg ran in Battle Creek, Michigan. 3 W.K. went on to invent the corn flake...
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...Case Report №2. Student: Aiymgul Myrzabekova id: 1572081 The Ready-to-Eat Breakfast Cereal Industry in 1994 (HBS 711462) Q.№1 – Why has the RTE cereal been such a profitable business? What changes have led to the industry crisis of 1994? To begin, historically the RTE cereal industry market shares showed great persistence. There are several reasons of it. Firstly, the industry is been oligopolized by Big Three (Kellogg, General Mills, General Foods) and had restrained competition among themselves by achieving effective unwritten agreement to limit in-pack premiums- free toys or gifts included in the package – to one brand at a time for each company and to refrain from trade dealing-offering discounts to retailers for special treatment or special promotions. Then, the Big Three had prevented entry into the industry by encouraging supermarkets and other retailors to adopt a shelf space plan that ensured that the Big Three’s products received the most valued position. Crisis appeared in 1994, when major firms continually introduced new products that market became fragmented. The two most highly touted product introductions of 1994 were “co-branded” cereal. As a fact, low price was the primary appeal of private label cereals. Also, they perceived to offer better margins to the retailers. Q.№2 – Imagine that your group wants to enter the RTE Cereal industry in 1994. What are the investment items you should consider? How much should these items cost in total? ...
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...BTM101: Chapter 1 Assignment Carlos Hernandez April 2, 2014 Professor: Leon Guendoo Q1. Which five companies did you select and what is the key product or service of each? The five companies I selected from the top 100 list were Google, General Mills, Intuit, Boston Consulting Group, and Wegmans. Google, Inc. is one of the world’s largest software companies and is considered the king of all Internet search engines. Based in Mountain View, California, Google employs about 47,500 employees in 40 countries around the world. Its key product is its powerful search engine, Google. The company also provide Gmail and recently launched the Chrome Netbook which runs on the ChromeOS operating system. General Mills is one of the world’s largest food companies and leading brands. Well known for its wide variety of cereals (Cheerios, Trix, Lucky Charms), the company also markets many other well-known North American food brands, such as Bettyrocker, Yoplait, Colombo, Totino's, Jeno's, Green Giant, Old El Paso, and Häagen-Dazs. Intuit is software company that produces personal finance and tax software. It most popular products are Quicken and QuickBooks, both of which are easy to use small business accounting software. The company also produces TurboTax tax-filing software, and offers loans (Quicken Loans) and online payroll services. The Boston Consulting Group (BCG) is a global management consulting firm with 81 offices in 45 countries. It is one of the Big Three management...
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...RED LOBSTER: MARKET RESEARCH REVEALS WHATS FRESH TODAY BACKGROUND 1968: Foundation: Red Lobster was founded in 1968 by entrepreneur Bill Darden and Charley Woossby. Originally billed as a “Harbor for seafood Lovers”, the original restaurant in Lakeland, Florida, was followed by several others throughout the Southest. 1970: General Mills acquired Red Lobster in 1970 as a five-unit restaurant company and rapidly expanded the company nationwide. As it reached more parts of the country, Red Lobster continually introduced guests to fresh dishes that quickly became favorites, with many guests getting their first taste of calamari, snow crab and Key lime pie here – not to mention the fact that it is where popcorn shrimp was invented. (after 1970, until 1980) In 1980, this year was one of the most important for the company, reaching and being in their stage of maturity, a stage in which all companies desire to be in there. In 1983, Red Lobster opened its first restaurant in Canada (Windsor, Ontario) Finishing, in 1995, after decades of success and growth, Red Lobster, together with Olive Garden and later Bahama Breeze, became part of Darden Restaurants, with Joe at the helm until 2005, when he turned the reins over to current CEO and Chairman Clarence Otis. Over the years, their passion for seafood and delicious experiences has kept Red Lobster evolving. Their menu has grown and changed with their guests’ tastes and their ability to bring the best of the sea to your table...
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...General Mills, Inc Summary General Mills is an American company that specializes in the production, packaging and distribution of food products. The company has managed to acquire a significant share of the market through mergers and acquisition. Currently, the company controls about 31 percent of the market. The industry is characterized by a moderate to low level of competition. The main competitors include Groupe Danone, Kellogg, and Kraft. Each company is able to retain its customer base since consumers tend to consume foods they are used to and hence strong brand loyalty. The company’s competitive advantage lies on its broad range of products and high level of innovation. High level of innovation has enabled the company to meet the changing customers’ need effectively while minimizing the operational costs. By providing a wide range of products, General Mills has managed to minimize risks. General Mills basically targets three groups, which include; baby boomers, Hispanics and the Minneapolis population. General Mills, Inc General Mills, Inc is an American company that is headquartered in Minneapolis in Minnesota. The history of the four industry traces back to the 1850’s and General Mills was founded in 1928 by James Ford Bell, who facilitated a merger between several milling companies in the region. The company is principally involved with the production and distribution of consumer foods. The company provides a wide range of products including meals...
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...Foundations Paper Olive Garden, Red Lobster, and Longhorn Steakhouse are places many have had the pleasure of visiting. These restaurants focus on providing exceptional customer service and creating a positive work environment for their employees. Along with the focus on exceptional service, these restaurants share another commonality; they are all a part of the Darden Restaurant Group. In 1938, a 19 year old by the name of Bill Darden opened his first restaurant. Over the next 70 years, Bill Darden would add eight different restaurants brands to his portfolio of companies, each one dedicated to providing exceptional customer service. In 1995, the Darden Restaurants Group Inc. would develop the Darden Foundation. A foundation committed to giving millions of dollars to support non-profit organizations in the communities Darden restaurants serve. Darden Foundation The Darden Foundation was founded in 1995 and named for its founder Bill Darden. In partnership with more than 2,100 restaurants and 200,000 employees, the Darden Foundation works each day — through grant making and strong partnerships — to bring a tradition of service to life in every community Darden serves (http://www.dardenfoundation.com, 2014). The Darden Foundation is focused and committed to making a meaningful impact on the communities they serve. The Darden Foundation identifies and invests in national nonprofits across the U.S. and near its company headquarters in Central Florida. The Darden...
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...Case 1 Slavica Ristoska 6/3/15 1. How does Darden segment and target the sit-down dining market? Use the full spectrum of segmentation variables in your response. Answer: Psychographic Segmentation is represented by Olive Garden’s plan to build a dining experience around the concept of a fabled Italian family. Olive Garden’s marketing team learned that a primary customer insight shows that customers are as interested in emotional nourishment as they are in physical nourishment. Styling the restaurant as an Italian farmhouse, commercials that invite you to be “part of the family”, and training at their Culinary Institute in Tuscany has shaped a genuine Italian menu. Geographic Segmentation is something that Darden exhibits in the Longhorn chain. Longhorn Restaurants are currently only found in the eastern half of the US. This offers an opportunity for extensive expansion going forward. Demographic Segmentation is exemplified by Red Lobster’s efforts to fill the gap between fast-food seafood and upscale white-tablecloth restaurants. Behavioral Segmentation is realized in usage rates. Darden, along with all other sit-down restaurants, are seeing a decline in the frequency that diners are eating out at sit-down meals. This is a result of economic decline and consumers becoming more particular with how they chose to use their limited finance resources. ...
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...MBAA 606 Talisha Quinta Case Study Write- up Red Lobster March 17, 2015 COMPANY OVERVIEW Red Lobster is a chain of casual dining restaurants, founded and managed by Bill Darden. The headquarters of the company is located Florida, and it has branches in Japan, United Arab Emirates, and Canada. Red Lobster has approximately 698 branches. The company was formed in 1968, with the aim of providing a place where Americans will get some seafood. The company was successful in introducing fresh and new delicacies to their customers. These fresh dishes became popular, and this accelerated the growth of the company, and in 1980s, the company made its presence in Canada. However, its Canadian experience was not good; this is because the company made lots of losses. Competition was stiff in Canada, and due to poor strategies and lack of sufficient market information, the company was forced to close some of its branches in Quebec, Canada. This happened on September 1997. In 1995, Red Lobster, Olive Garden and Bahama Breeze were integrated, as part of the Darden Restaurants Inc. Joe Lee was then in charge as the Chief Executive Officer, and later on, he handed the company to Clarence Otis. The company is passionate about seafood, and over the years, the company has initiated the culture of innovation for the purposes of introducing and developing new menus that will satisfy the needs of its customers. Red Lobster has become a household name and over the years was able to gain...
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