Each reply should be a paragraph in length (or about 150 words) and must be substantive in nature. Do not simply say “I agree” or “That is great.” Specify why and be detailed in your explanation. Use research in your responses and provide 2 references.
A grand strategy matrix is a tool used by businesses to devise alternative strategies. The matrix is primarily based on four essential elements:
RAPID MARKET GROWTH
SLOW MARKET GROWTH
STRONG COMPETITIVE POSITION
WEAK COMPETITIVE POSITION
The concept of business is followed by large and small-scale organization by implementing various strategies to achieve growth and profits. Which includes two concepts such as setting goals and implementing various strategies to attain these organization objectives. So let’s see the process of strategy choices from four quadrants in General Mills by using Grand Strategy Selection Matrix in this context.
STRATEGY CHOICES IN GENERAL MILL:
Framing strategic choices can be defined as the process of decision-making used in the organizations to respond to various pressures and influences of the external market. It is a process, which is followed by General Mills, to make an effective use of financial resources, human resources, productive capacity and distribution channels in the organization. The company uses various strategies to increase more sales by attracting the customers and by creating more demand for the products and services. By using the model of GSSM, General Mills is able to acquire its competitors and gain a larger market share among the competitors in the business market. General Mills judiciously allocates the resources of the organization to increase the productivity and efficiency so that it can contribute to more profit margins.
These four elements make up a four-quadrant strategy matrix in which every organization involves in selection and identification of the best strategies among the existed strategies based on the company’s competition and growth. Choosing an appropriate strategy is in the hands of management to lead and grow well. The four elements of a grand strategy matrix are generally considered as key concepts of competitive position and market and market growth. Businesses use this method to plan effective strategies.
Developing a grand strategy matrix involves analyzing a company’s ability to grow quickly or slowly while assessing strengths and weaknesses. Which explains.,
1.The first quadrant represents strategies for companies with a strong competitive position and the process of attaining market growth.
2.Second quadrant explains about the Companies with a weak competitive position in a fast-emerging market.
3.The third provides strategies pertaining to companies in a slowly growing industry with less competition
4.The fourth quadrant lists strategies for companies with a strong competitive position in a slowly growing industry.
Generally, strategies listed in the quadrants helps to maintain a firm’s competitive edge and boost rapid growth, while the other three quadrants represent appropriate actions to take to reach the best position.
By the implementation of GSSM strategies General Mills had attained competitive advantage and growth that may be rapid to get more profits.
In my opinion, General Mills falls in the first quadrant that represents the companies with strong competitive positions and thrives to attain extensive market growth. General Mills is committed to maintaining its competitive edge and boosting its rapid growth. The General Mills falls in the first quadrant because it has a strong strategic position and focuses on maintaining as well as gaining the competitive advantages and it adopted product development strategies, market development, and market penetration strategies and as well as increasing the investments capacities to meet the growing consumer interest in the natural and organic food that is anticipated to drive the double-digit industry sales growth over the next five years (Ireland, Hoskisson & Hitt, 2012). Therefore, General Mills creates wealth a focus on healthier products while maintaining the holistic margin management as an initiative that costs cost not only through the supply-chain route but focuses on permeating every aspect of the company from marketing to payroll administrations as well as a strong investment in the Research and Development that result in good products.
Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2012). Understanding business strategy:
Concepts plus. Mason, OH: South-Western Cengage Learning.
The Grand Strategy Selection Matrix Strategy is broken down into four quadrants. General Mills fits best into one of those quadrants. These strategies are competitive positions and market growth dimension that are useful for organization to create alternative strategies. General Mills operate in an industry where competition and growth are both strong advantages.
General Mills falls under the first quadrant which indicates that the company has strong competitive based and operating in a fast-moving growth market (mkaknol.com, n.d.). This company continues to show growth within the food processing industry. General Mills had a 7.15% increase in revenue from 2018 which shows the progress made over the year. Their global and environment growth also demonstrates a huge part of their growth system.
Mbaknol.com (n.d.) Grand Strategy Matric. Retrieved on 24 August 2019 from https://www.mbaknol.com/strategic-management/grand-strategy-matrix/
The Grand Strategy Matrix helps companies develop a strategy by examining the ability to grow rapidly or slowly, combined with competitive strengths and weaknesses. I like that this matrix can be applied to both large and small companies (Johnston, n.d.). The quadrants are broken down into:
Quadrant 1: Strong competitive position and rapid market growth
Quadrant 2: Weak competitive position and rapid market growth
Quadrant 3: Weak competitive position and slow market growth
Quadrant 4: Strong competitive position and slow market growth (“Grand strategy matrix,” n.d.).
The quadrant where the company falls into can help identify and develop strategies to improve overall competitive edge and continue growing (Johnston, n.d.).
In evaluating General Mills, I placed them in Quadrant 4, having a strong competitive position and slow market growth. I went back and forth between putting them in Quadrant 1 or 4, but will explain why I went towards Quadrant 4. General Mills, while making significant efforts towards growth and certain segments growing well in the market, the industries in which General Mills primarily operates are overall mature industries. For example, the cereal production industry; cookie, cracker, and pasta production industries; and the baking mix and prepared food production industries, all are well-established industries. These are industries in which General Mills and its close competitors such as Kellogg’s, Kraft-Heinz, and Conagra are all big players (Sanders, 2019; Amir, 2019; Zheng, 2019). However, this doesn’t mean that these industries aren’t changing. As we know for example, General Mills has introduced or reintroduced cereals that meet consumer trends (Sanders, 2019).
Additionally, according to the Grand Strategy Matrix, firms in Quadrant 4 typically follow related or unrelated diversification, vertical and horizontal integration, and joint ventures (“Grand strategy matrix,” n.d.). General Mills has followed these trends, such as through their acquisitions of Blue Buffalo (pet foods), Epic Provisions and Annie’s (organic, natural foods), and Pillsbury (Old El Paso, Green Giant, Progresso, and Yoplait, among others). These examples of horizontal integration allowed General Mills to expand into other territories beyond just its cereal to continue growth.
Finally, General Mills entered into and continues to expand its joint venture with Nestle in the Cereal Partners Worldwide venture, also following typical company strategies found in Quadrant 4, in order to expand its worldwide production and distribution (Boyd, 2019).
Amir, A. (2019). Cookie, cracker & pasta production in the US. IBISWorld. Retrieved from Trident Online Library.
Boyd, K. (2019). Top 7 companies owned by General Mills. Investopedia. Retrieved from https://www.investopedia.com/articles/company-insi…
Grand strategy matrix. (n.d.). MBA Knowledge Base. Retrieved from https://www.mbaknol.com/strategic-management/grand-strategy-matrix/
Johnston, K. (n.d.). How to develop a grand strategy matrix. Chron. Retrieved from https://smallbusiness.chron.com/develop-grand-stra…
Sanders, S. (2019). Cereal production in the US. IBISWorld. Retrieved from Trident Online Library.
Zheng, Q. (2019). Baking mix and prepared food production in the US. IBISWorld. Retrieved from Trident Online Library.
Classmates and Professor,
the Grand Strategy Selection Matrix, or GSSM (the GSSM can easily be found via a Google search), decide which one of the four quadrants General Mills fits best within? Defend your decision!
The Grand Strategy Matrix is a tool used for formulating feasible strategies. Grand strategy matrix creates alternative and different strategies for any organization. All companies and divisions are positioned in one of the Grand Strategy Matrix’s four strategy quadrants. The Grand Strategy Matrix has two dimensions, competitive position and market growth. This matrix offers feasible strategies for a company to consider which are listed in sequential order of attractiveness in each quadrant of the matrix.
I believe General Mills falls in quadrant IV having strong competitive position and slow market growth. General Mills stance in longevity and well-known brands creates a competitive advantage as it brands have breath and diversity compared to others in the industry that compete with General Mills. Their brands are not only diverse but aloe stand strong through their sales and popularity that meets the needs from all types of consumers (General Mills, 2019). To tasty snacks and candy to nutritious brands that meet needs of a healthy lifestyle with a natural and clean approach. Brands such as Nature Valley, Larabar and Green Giant out the company at an advantage as the future society becomes more health conscious. On the flipside, the company has recorded some declines in sales over the past five years. However, sales in the recent year have shown a climb from $3.9 billion in quarter 3 of 2018 to $4.2 billion in quarter 3 this year (Kalogeropoulos, 2019).
General Mills (2019). General Mill, Inc. Retrieved on 28 Aug 19 from https://www.generalmills.com/en/Brands/Overview
Kalogeropoulos, D. (14 April 2019). General Mills Returns to Growth. Retrieved on 28 Aug 19 from https://www.fool.com/investing/2019/03/22/general-mills-returns-to-growth.aspx
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