Provide a response to this student's discussion based on the question below:
During Week 1, you are asked to address the following:
a) Evaluate the operating industry of General Mills using a minimum of two forces included within Porter's Five Forces model.
b) Using PEST, assess General Mills' remote environment using a minimum of two PEST forces.
c) Conclude your assessment about the overall environment. Is it more or less favorable for General Mills? Give your ranking from 1-10 (in which 1 = vast gloom and doom for this company; 10 = huge bonus this year!). Where do you think General Mills fits on this 1-10 scale?
Week 1
a.General Mills Operating Industry using Two Porter's Five Forces
The supplier power and barriers of entry are the two Michael Porter's Forces used to analyze General Mills. With regard to the power of suppliers, Michael's Two Five Forces can be considered to have the higher power as compared to General Mills. In this vein, the company sources raw materials from farms. Since consumers are concerned about where the raw materials for the food products such as cereals are sourced, General Mills is left with only a few suppliers that are acceptable.
The competition from other manufacturers means that the suppliers have more power to increase prices when demand increases (Khan et al., 2013). The barriers of entry in the food manufacturing market can be considered low (Buckley & Casson, 2016). More companies can enter the market and focus on niche segments. Thus, General Mills has to focus on creating and sustaining brand loyalty.
b.General Mills' Remote Environment Using Two PEST Forces
The economic and social forces are the aspects used to analyze General Mills. The global economic outcome predicts a slow growth and this portends a difficult future for the company's products (Buckley & Casson, 2016). The social forces show an increase in connectivity through social media and other forms of communication. These provide new marketing opportunities for the company.
c.Assessment About The Overall Environment
In analyzing the overall environment of the company, General Mills seems favored with a rating of about 8 on a scale of 1 - 10. This indicates that the company has the ability to continue in its operations in the near future. In spite of the slowed economic growth at the global level, the company can leverage the opportunities provided by social connectivity to enhance its marketing (Khan et al., 2013).