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By: Sandra Ramirez

By: Sandra Ramirez. Company Overview. 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

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By: Sandra Ramirez

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  1. By: Sandra Ramirez

  2. Company Overview • 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)

  3. Products Offered • Product mixincludes: baking products, dough/pastries, fruit, cereals, ice cream, meals, organic/natural, pasta, pizza, snacks, soups, vegetables, and yogurt. • The cereal product lineincludes 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. • 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 • Wiki link: http://generalmills-mgt111hn1project.wikispaces.com/Product+%26+Services

  4. Market Positioning • Sector: Consumer Goods • Industry: Processed & Packaged Goods • Major competitors: Kellogg’s, Kraft, ConAgra Foods, Danone, Campbell Soup, Seneca Food Corporation • 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 • Shows ranking based on different criteria • http://biz.yahoo.com/ic/ll/342qpm.html

  5. Comparison showing General Mills being about 7.86% of the total industry market cap

  6. Profitability • Income Statement

  7. 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

  8. Current Business Issues • 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

  9. Recommendations for Business Improvement • 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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