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United Cereal: Lora Brills Eurobrand Challenge

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Master of Finance ________________ Principles of Management ________________ Principles of Management Lecturers: Carsten Brodt/ Andrea Raab United Cereal Laura Brill?s Eurobrand Challenge 4858318: Yan Gu 4841426: Zhaoxi Wang 4840554: Wenjiao Cao 4847300: Mengfan Liu 4848152: Ritu Pathak 4838304: Chuxian Wang 4843927: Sanyog Yadov 4836586: Yuwan Zha ________________ Content I. The positioning of United Cereal (UC) a. The vision of United Cereal b. Generic strategies analysis of UC c. The implementation of ?UC way? II. The European Market a. The SWOT analysis of UC?s environment in Europe b. The Porter?s Five Forces analysis of UC?s environment in Europe c. The standard expanding way of UC?s business in Europe III. Strategic Choice: Launch of Healthy Berry Crunch in France a. To launch or not to launch b. How would the launch reflect the UC way IV. Strategic Choice: Should Healthy Berry Crunch become UC?s First Eurobrand a. The concept of ?Eurobrands? b. The analysis of the establishment of Eurobrands V. Organizational Structure to Support effective implementation of Eurobrand a. The relationship between a structure and a strategy b. The analysis of Laura Brill?s structure Reference I. The positioning of United Cereal (UC) a. The vision of United Cereal We accompany you to embrace every delicious and hopeful morning. You inspire us to pursue forever innovative and vigorous winning. ------- United Cereal In a study (James C. Collins, Jerry I. Porras, 1996), James C. Collins and Jerry I. Porras proposed that a well-conceived vision consists of two major components: core ideology and envisioned future. Core ideology defines what we stand for and why we exist. The envisioned future is what we aspire to become, to achieve, to create-something that will require significant change and progress to attain. 1. Core ideology Core ideology consists of two distinct parts: core values and core purpose. While the strategies and practices will adapt to the changing environment endlessly, core values and core purposes remain fixed in the companies which enjoy enduring success. ...read more.


This actually increases the bargaining power of customers and put pressure on UC. 4. Threat of substitute products. Substitute products usually limited the capability of a firm to earn more profit by placing a ceiling on the price. In order to keep the customers or even draw back customers, updated products should be available. In European market, there is a variety of national traditional for breakfast. Customers are easily and frequently eat different foods for breakfast other than cereals. Keep on developing new products to meet the customers? need is important for UC to maintain its market share. 5. Competition in industry. In a highly competition industry, its difficult for a firm to earn abnormal profit and rapid growth rate. Low price, high quality or differentiation products help a firm to compete with other players. In UC?s case, the two biggest firms UC and Kellogg control a total of 46% market shares, with the biggest four make of 70% market share and numerous smaller firms divided the remaining 30%. The cereal market in Europa is a highly competitive market. c. The standard expanding way of UC?s business in Europe When a firm decides to expand to international markets, there are several ways to choose. Export, franchising/licensing/contract, joint venture, foreign branch, private equity investment, and wholly owned subsidiary are of commonly used approaches (Pearce, J.A. Robinson, 2009). In 1952, UC first entering European market by acquiring an established company located in UK. In the following 30 years, UC used the approach, wholly owned subsidiary, to expand its operation in European. First acquiring an established local firm, then introducing products of US lines to grow it. Through the stand way of expand, up to 2009, 20% of global sales of UC are contributed by European market. By wholly owned the foreign subsidiary, a firm is flexible to introducing new products from matured market into the new market. ...read more.


Laura?s Eurobrand strategy is committed to push French Healthy Berry to the whole Europe. Obviously UC?s current structure is not proper for this strategy, since in every country CMs are making decision on their own product marketing and development without reporting to a single person in charge of Eurobrand, and this may make Eurobrand seem like several other brands and lead chaos if Eurobrand really comes into being; while Laura?s proposal structure implicates a European products manager system, which integrates the market operations in different countries and this benefits the Eurobrand by forcing different subsidiaries acting collaboratively. Though Laura?s proposal structure is appropriate in some sense for both UC?s generic and Eurobrand strategy, the structure can be improved in a few aspects for her inconsideration of some potential problems. For instance, the implementation of new strategy can be effective only when employees within the structure are able to work together and communicate easily. When restructured, the organization should focus on lines of communication. Besides, as division VP evolved in brand management, the hierarchy of UC will become more complex, which will result in a longer information chain; hence, Laura should make sure that hierarchical structure is clear and efficient, and that every employee feel they are evolved in the decision-making process. Reference 1. James C. Collins, Jerry I. Porras (1996). Building Your Company?s Vision. Harvard Business Review. 1. M. Pretorius (2008). When Porter?s generic strategies are not enough: complementary strategies for turnaround situations. Journal of Business Strategy. Vol. 29, No. 6, pp. 19-28. 1. Ovidiu N. Bordean, Anca I. Borza, alt (2010). The Use of Michael Porter?s Generic Strategies in the Romanian Hotel Industry. International Journal of Trade, Economics and Finance. Vol. 1, No. 2. 1. Micheal E. Porter (1979). How Competitive Forces Shape Strategy. Harvard Business Review, pp.102-117. 1. Pearce, J.A. Robinson (2009). Formulation, Implementation and Control of Competitive Strategy. 11th editon McGraw-Hill. 1. Joseph R. Cerami (2000). Research in Organizational Design: The Capacity for Innovation in Large, Complex Organizations. The Innovation Journal. 1. Jones (2010). Organizational Theory, Design and Change. 6th edition. Pearson. ...read more.

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