General Mills, Inc - GeneralMills

Report
By: Sandra Ramirez
Company Overview
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Headquarters in Minneapolis, Minnesota.
Incorporated in 1928
79 manufacturing locations, 49 in U.S.
Social Involvement, leadership development, health concerns
Consistent dividends
Longevity & Well- recognized brands, trust, loyalty
Large variety of products
Stable position, little stock volatility
Not too much bad press
High commodity prices in the food industry (grains, oats, etc.)
Many recognitions/awards
High debt, debt financing through bond issuances
Accounts receivable growth is greater than revenue growth
(happens through acquisitions: Yoplait)
Products Offered
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Product mix includes: baking products, dough/pastries, fruit, cereals, ice cream,
meals, organic/natural, pasta, pizza, snacks, soups, vegetables, and yogurt.
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The cereal product line includes the company's Big G cereals, which are: Cheerios,
FiberOne, Chex, Lucky Charms, Wheaties, Cinnamon Toast Crunch, Cocoa Puffs,
Total Raisin Bran, Kix, Honey Nut Clusters, Count Chocula, Trix, Whole Grain Total,
Cookie Crisp, Golden Grahams, etc.
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Another product line would be soups, which include: Progresso and Muir Glen. And
one last example would be its' vegetables product line including: Green Giant,
Cascadian Farm, and Muir Glen
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Wiki link: http://generalmillsmgt111hn1project.wikispaces.com/Product+%26+Services
Cash Cows
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Cheerios
Chex
Wheaties
(Big G Cereals)
Star Products
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Progresso Soup
Green Giant
vegetables
Yoplait yogurt
Betty Crocker
Haagen Dazs
Failed Products
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Basketball-shaped
cereal, “Dunk-ABalls”
Home bread mixes
Products in
questions
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Organic products
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Ready-to-eat meals
Market Positioning
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Sector: Consumer Goods
Industry: Processed & Packaged Goods
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Major competitors: Kellogg’s, Kraft, ConAgra Foods, Danone, Campbell
Soup, Seneca Food Corporation
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Ranks real high in the industry because…
• Top #1 selling cereals
• Stable operations
• Shareholders trust
• High value to market
• Products essential to everyday life
• No matter what, people need to eat
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Shows ranking based on different criteria
• http://biz.yahoo.com/ic/ll/342qpm.html
Comparison showing General Mills being about 7.86% of the total
industry market cap
Profitability
• Income Statement
Trending of Stock Prices
• Started off low
• Stock price and volume increased when quarterly earnings
report was released, results better than expected
• For the most part, stock price remained stable between $37-$39
• Volume ranged from 2 million to the highest of 11 million; mostly
stayed within 3-4 million
• Right now, reached $40
• When market almost went into a bear market, GIS remained
stable along with other food processing competitors
• No high volatility; consumers always need food
• Do well even during hard economic times
Current Business Issues
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Dealing with the high commodity costs
Expanding in online marketing/promotions
Reduce sugar grams in its’ products
Lower its’ debt
Competition from store brands: not advertised, but
cheaper
Recommendations for
Business Improvement
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Further research to compete against Kellogg’s and ConAgra Foods
Change all factories to biomass-powered energy source; be more
environmentally sustainable
Keep technology up to date
Increase in promotions and online marketing
Increase in targeting older generation
Make sure demand for products does not outpace their production
capacity
Control their expansion, focus on long-range planning
Expanding their over dependence on the U.S. market to other
countries.
Hire new personnel to meet demands associated with new
production and new marketing campaigns

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