General Mills Merger with Pillsbury

In: Business and Management

Submitted By atheurer2
Words 4338
Pages 18
Executive Summary General Mills first began as a flour Mill in the 1860’s and since the beginning they have been a successful, innovative company. Throughout the years they have grown to becoming the third largest food company in North America. General mills is committed to diversity, innovation and the relationships they have built. They believe their stakeholders are as important to the company as their customers, keeping them in mind for every business decision made. They have 6 key stakeholders; consumers, customers, partners, teams, shareholders and communities. General Mills believes the success of their stakeholders is a success for the company, every decision they make must add value to for their stakeholders. In 2001 General Mills completed a merger with their long-time competitor, Pillsbury. Both sides of the merger felt this was the best decision for each company involved, General Mills felt it would add value to shareholders, while Pillsbury was just happy the business would stay local. The merger was complete with a $10.5 billion price tag and would total $13 billion in annual sales. The only problem was Pillsbury’s weak performance, causing layoffs for General Mills. The best solution to remedy this problem is for General Mills to get its thinking caps on and come up with a new innovative product line for Pillsbury. It will take time and a lot of effort, but in the end the benefits will improve the new company and get Pillsbury performing at the same level as General Mills. With a feasibility analysis complete, I have determined General Mills has what it takes to implement this solution and be successful. The issue of ethics and the law are also addressed briefly, since there is a lot legalities involved with creating a new product. Making sure General mills isn’t infringing on patents or copyrighted products, while being ethical in their…...

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