United Cereal

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United Cereal: Lora Brill’s Eurobrand Challenge
The case is focusing on European division of a giant multinational breakfast food company, which describes a launch decision for a new cereal product. United Cereal (UC) was established in 1910 by Jed Thomas. It was known in the industry, eventually diversified into snack foods, dairy products. By 2010 UC was a $9 billion business, but the breakfast cereals still accounted for one-third of its revenues. As the breakfast cereal trend soon set in. It was very necessary for the company to launch a new product. The company had strong values and policies, which it needed for its managers to follow. Breakfast cereal market was a potential market and there were several major
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In this new segment the competition is now fierce yet but new entrances are coming, so become a new comer will have some advantages. Hence the product should be launched in France first;The last one, considering the savings of 10-15% in the overall costs of all Europe, the launch of Healthy Berries Crunch seems to meet the company’s long-term strategy of streamlining the operations and product matrix of Europe. Also the innovation in the products had been at the core of UC’s history and the launch of Healthy Berry Crunch will be in line with this core value.
Q2. Does United Cereal represent an example of centralized or decentralized international management? Discuss in context of corporate values, policies and practices and then discuss UC organization process A2.
UC is centralized international management. Centralization is when the decision making is controlled by few people; it means that all the important decisions need to get approval from the top managers. In UC’s case the CMs need to get the approval from the UC Europe and the Corporate; subsidiary manager cannot make their own decision to launch or not to launch. Hence this is a centralized international management. However, even though it is centralized, each individual CM has power to control. UC allows that Europe has individual breakfast patterns throughout, since it
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