Competition

General Mills, Inc.'s main competitors are Kellogg's Company, Kraft, ConAgra Foods, Campbell Soup, Seneca Food Corporation, and Danone. But General Mills, Inc. tops these competitors by the following factors:

What makes General Mills, Inc. the best and superior out of its competitors ?


 * Experience
 * Commitment
 * Energy
 * Research and Development
 * Product Innovation
 * Stability/Consistency

(FoodEngineering.com, 2005)

General Mills, Inc. operates over 100 companies with top-selling brands like Cheerios, Häagen-Dazs, Betty Crocker, Pillsbury, Green Giant and Progresso. These well known brands help the company stay on top and competitive against Kellogg's and such companies. General Mills also provides constant, uninterrupted dividends, which is its' greatest competitive advantage, in terms of economics. Many analysts place General Mills on the top lists of companies who have profitable dividends (Forbes.com, 2011).

General Mills' prices are average and fair. They provide valuable products to consumers to meet their demands. For General Mills' products, the consumer demand is high because everyone eats cereal as well as all the other food products the company offers, such as ice cream, soups, vegetables, etc (GeneralMills.com, 2011). Its' product mix is varied and all products within it prove to be of value in the consumers perceptive eye.

Below is a further list of General Mills' core competencies against its' competitors:

Core Competencies
 * Creativity
 * Food Engeneering
 * Keeping the right product in the marketplace
 * Process Expertise
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Knowledge of the consumer
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Technology
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Product Innovation
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Quality Improvements

<span style="color: #d855d8; font-family: 'Comic Sans MS',cursive; font-size: 120%;">How does General Mills do this?
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Mentoring programs for its' employees as a guide to moving up in the corporate ladder
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Open communication with managers and employees
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Clear Code of Ethics that all employees are aware of
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Benchmarking with other companies to stay on top of competition
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Managing operations in manufacturing and day-to-day operation with constant evaluations of production processes
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Provide adequate training to employees in designated area
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Devising and innovating new products to add to the company's product mix, and getting it to store shelves quickly
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Engineering manufacturing technology from right within the company; from employees' innovative ideas
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Expertise in process control, process, methods, and practices
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Implementing environmentally sustainable operations, such as with its' biomass powered plant
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Taking on projects that are directed at improving quality and productivity while reducing cost.
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">new product formulation, product improvement, quality assurance and basic research.
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Investments in technology innovations
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Connecting all functions, making them mutually dependent: Operations, Engineering, Research and Development, Packaging, Marketing, Quality assurance
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Distinguishing between incremental innovation and breakthrough innovation,and trying to get a good mix of each
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Promoting the "discovered" benefits of primary ingredients, such as oat bran on the products' label. "For example, the heart health claims on today's Cheerios package have added a significant growth bump to the performance curve of the industry's best-selling cereal" (Pehanich, AllBusiness.com, 2001).
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Long, intense research studies on its' consumers
 * <span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Conducts basic research on the performance, functionality and nutritional impact of key ingredients, like whole grains and their micro-nutrients, as well as food processes and packaging systems (Pehanich, AllBusiness.com, 2001).

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">As seen, General Mills, Inc. is a company that is committed to its' customers, but also to its' workforce and the research the company must gather in order to meet the consumers' needs as well as make a profit. Danny Strickland, as the vice president of innovation, technology, and quality, says, "Within the context of food, we are the most committed company to research that I know of," (Pehanich, AllBusiness.com, 2001). As another General Mills executive said, "General Mills has a formula for success proven over 100 years," notes Tom Forsythe, vice president of corporate communications. "First, be the premium-price player. Second, to command the higher price, you need distinctive consumer benefits. Finally, tell the consumer about the benefits-and those benefits come from Research and Development" (Pehanich, AllBusiness.com, 2001).

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">As General Mills, Inc. notes itself, it "regards knowledge of the consumer as a core competency. Products and technologies aim to deliver those consumer benefits, while other research strives to unveil inherent benefits in existing products" (Pehanich, AllBusiness.com, 2001). For example, the company researched on women's nutritional needs and interests, because women are the ones that are more health-conscious and actually go out and buy more.

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif;">For the future of General Mills' core advantages and competencies, the company states that, "Future technology leaders must have direct experience in the lab, on the front lines of product development, but also have skills in planning, relationship building and forecasting. Above all, they have to tie Research and Development work to the business" (Pehanich, AllBusiness.com, 2001).

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">Overall, Peter Erickson, vice president of Research and Development, Big G division, highlights three keys to General Mills, Inc.'s new product success:

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">1. **__Observe the consumer__**. "New product ideas come from consumer insight. The initial idea is likely to emerge from a cross-functional team, in which an R&D pro enters homes with a marketing professional to gain insight firsthand. Careful observation on those visits may disclose inconspicuous problems or desires that the consumer can't or has not even thought to explain" (Pehanich, AllBusiness.com, 2001).

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">2. **__Rapid prototyping__**. "Sophisticated equipment in the R&D lab facilitates the creation of rapid prototypes, models of packages, designs, logos and products for concept testing and improved visualization. Because General Mills maintains one of the largest and most productive design and machine shops in the food industry, that capability also carries over to the creation of functional parts. Such parts may include die designs, which may have their own origin in plastic prototypes made in the lab, notes Perry May, head of machine shop operations" (Phanich, AllBusiness.com, 2001).

<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%; line-height: 18px;">3. **__The stagegate process__**. "General Mills employs a stagegate process to filter out failure before it becomes costly. 'It is a narrowing funnel that starts out wide with a lot of ideas,' says Erickson. As the concept develops into a product, multifunctional teams comprising engineering, operations, R&D, QA and packaging review models and data. If they see at any stage that they cannot develop a high-quality product economically for commercial production, they pull the plug. "At the same time, we have a parallel team working on the marketing of the product and the delivery of information to the consumer," says Erickson. 'All along the way, we try to remain faithful to the consumer concept, asking consumers if the product meets their needs. We want to know everything before we make the investment to bring a product to the marketplace' (Pehanich, AllBusiness.com, 2001).

<span style="font-family: Georgia,serif;">Finally, this chart compares General Mills with competition in terms of its' retained earnings. This demonstrates how GIS is highly competitive, only 2nd behind Kraft, and pretty even with Campbell Soup; both of which are General Mills' top competitors. All other companies are following behind these top three companies, which makes General Mills look great in the perceptive eye of the consumer.



<span style="font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 110%;">(Sources: FoodEngeneering.com, AllBusiness.com, and General Mills, Inc. company website).