Part 2: The European Market
(d) Do an analysis of UC´s environment in Europe by following the information given in the case! Use Porter´s 5 Forces as well as a SWOT analysis!
The multinational breakfast foods company United Cereal entered European markets in 1952. By the year 2010 Europe´s breakfast cereal market has grown to a $7 billion business which has proven to be a profitable market segment and therefore attracted various competitors. Only four actors account for 70% of market share in the European markets. Among them are Kellogg which is regarded as UC´s strongest competitor, ranked first with a 26% share, Cereal Partners, a joint venture between General Mills and Nestlé, with a 17%, and Weetabix with a 7% share in the market.
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as well as in Europe creates new opportunities for UC and its competitors. By reorganizing the company´s organizational structure, UC would be given the opportunity of reducing the number of employees and cutting marketing and product development costs by 10% to 15% within just three years.
The global recession in 2008/2009 did not just lead to a change in consumption towards an increasing demand for cheaper products in the product range but it was also responsible for a decrease in market growth that resulted in a growth rate less than 1% annually. However UC faces the threat of strong competitors. The largest competitors is Kellogg which is the market leader with a share of 26%. Kellogg has the advantage to lower operating costs due to its volume. Along with this increased market competition in Europe, UC was also threatened by a price and promotion pressure outgoing from its major rivals Kellogg and United Cereal. An ongoing fight for market share, and high costs and investment of time in order to develop new brands are just two more factors that UC and its competitors face in daily business. Another market condition that can be identified as an external threat (and opportunity) is the great variation in consumption. Consumers´ cereal consumption varies greatly throughout Europe. While approximately 8/kg year were consumed by UK citizen, Italians only ate 0.5 kg/year. Throughout Europe the point of sale also
For the analysis the packaged food company ConAgra Foods, Inc (CAG) was chosen. According to ConAgra 2013 Annual report, ConAgra Foods, Inc. is one of the USA’s leading food companies. It has a strong brand recognition and consumer loyalty. ConAgra 's products are sold both in large supermarkets and convenience stores. Company operates in Commercial and Consumer Foods segments. The food industry is especially interesting for the research as the demand on food will stay relatively stable even during economic crises and is continuously growing.
Foods Fantastic Company is a public company which mainly operating regional grocery store in Maryland. This Company relies on application programs, such as bar-code scanner, to entre sales to the system. The FFC majority depends on the computer system to run their business. Based on this situation, the Information General Controls review is necessary for this company as the reason that ITGC is the foundation of every categories of the internal control.
| Clearly there is a big gap between the quality perception in Canada and the United States. Canadian consumers are implying that they want a higher quality product and a product that is more convenient for children.
Power Struggles in the High Middle Ages Throughout most of history, knights and nobles held most of the political power. Once the High Middle Ages began, that power shifted into the hands of popes and kings. This struggle went on for a very long time. Popes believed to have the power because they believed they were chosen by God to rule over the people.
(Assume that the amount of debt issued to reach the target debt-to-capital ratio is going to be maintained forever. Use the tax rates assumed in the attached Excel file).
Essay Question: In what ways does this movie demonstrate the “Iron Triangle” and its powerful influence in the manner that our government functions?
General Mills competes in a dynamic environment. Some of their competitors are Kellogg’s in the cereal segment. Cereal was a product that used to be the number one election for breakfast in American. As time and new knowledge evolved, consciousness about products with less sugar or gluten free arose making the cereal industry tumble. Products like protein bars, Greek yogurts, and even fast food are the new options to start the date, gaining market share over the cereal industry.
Sales of private label cereal grew 50% from 1991-1994 in the Ready-to-Eat breakfast cereal industry. Some of the factors that contributed to the entry of private label cereal manufacturers and their subsequent growth include - lower costs related to manufacturing, packaging, marketing, R&D compared to the Big 3 cereal companies, product quality approaching that of branded products, higher margins for grocers, lower priced products. Some observers blamed higher prices and elaborate expenditure on coupon printing, distribution, redemption and reimbursement of grocer's handling fee for market share gains made by private label cereal products. The policy of "price up and spend back" seemed to hurt the Big 3 firms.
Dairy farming is one of the most important sectors of Canadian agriculture. It is ranked in third place after grains and beef. The country´s 12.234 farms recorded total farm revenue of $5.92 billion in 2013. The 474 dairy plants located all over the country had estimated sales of $15.7 billion in 2013, accounting for the 16% of the value of manufactured shipments of food and beverages (Statics of the Canadian Dairy Industry 2014 Edition, 2014).
This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.
The case focuses on Kellogg’s Special K brand and considers how the marketing of this has changed over time. Marketing is not static – it must be developed as market conditions and customer expectations change.
Miscommunication between bureaucratic agencies and their leaders can lead to problematic outcomes, like in the case of the Argentine intelligence service. The article titled, “Argentinian government moves to dissolve domestic intelligence agency” written for The Guardian by Jonathan Watts describes how President Cristina Fernandez de Kirchner believes the agency to be corrupt. She has decided to disband the current system and create a new federal intelligence agency. This problem illustrates issues of delegation and the problem of agency loss. In analyzing the situation, it is important to note that although the presidential system they have now has played a part in the issues surrounding Argentina, changing to a parliamentary system would
Food Inc. opens in an American supermarket and draws attention to the unnatural nature of year-round tomatoes and boneless meat. It pulls aside the curtain that is concealing the truth about food from the consumer. After the brief intro, the movie shifts its focus to the topic of fast food and its impact on the meat industries. Fast food virtually started with McDonald’s. When they decided to simplify their menu and hire employees that repeated one task over and over for minimum wage, the result was the fast food phenomenon that swept the United States, and then the world. Today, McDonald’s is the largest purchaser of beef and potatoes in the United States, and is one of the largest purchasers of pork, chicken, tomatoes, and apples. Though
The cereal industry is very adamant on using a differentiation strategy to make one’s brand stand out in the minds of certain people. The companies break down the public into different target markets; and then make products that will be attractive to their target markets. Companies make different brands for young kids, teenagers, adults, and people who are health conscience. Currently, there are 387 different brands of cereal sold in the United States and each family is estimated to purchase 17 different brands per year. (O’Connor, Amy) Companies continue to brainstorm for new product ideas to attract the various market segmentations.
Agriculture was the most important economic activity in America from the founding of Virginia in 1607 to about 1890. Although farming declined rapidly in relative economic importance in the twentieth century, U.S. agriculture continued to be the most efficient and productive in the world. Its success rested on abundant fertile soil, a moderate climate, the ease of private land ownership, growing markets for farm produce at home and abroad, and the application of science and technology to farm operations.