Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Help

Home >> Darden Business School >> General Mills Acquisition Of Pillsbury From Diageo Plc >> Recommendations

Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in international markets without any decrease in its regional profits and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Solution Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the global presence of the business. The closing of domestic stores could extremely affect the incomes of the company as above 90% of its shops are located domestically and closing those stores would ultimately lower the profits of the firm. Furthermore, the company has a long term market position in US which can not be produced soon in the new markets. The choice would assist the company to expand in worldwide markets along with the elimination of concerns raised in its regional markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in income from global markets.
• Removal of concerns connected to variety.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Help Stores

Alternative 2 consists of the intro of online market places through creating a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a severe danger to the market share of business. The competitors are shifting towards click and Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Analysis shops with Space introducing Piperline. This shift towards online markets could reduce the revenues for company. In this circumstance the company might consider presenting Click and Recommendations of General Mills Acquisition Of Pillsbury From Diageo Plc Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Individuality
• Removal of the excellent shop experience.
• Risk of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company could think about, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of profits of the company. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of new international markets.
• Boost in profits from global markets.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.