Module 3 Week 2 Grand Strategy Selection Matrix Discussion
Using the framework discussed in the background readings, critically analyze General Mills’ strategic choices at the Corporate level (remember that “corporate” level is the very highest level of the organization, with lower levels being the “functional” and the “business” levels).
WEEK 2:
Using the Grand Strategy Selection Matrix, or GSSM (the GSSM can easily be found via a Google search), decide which one of the four quadrants General Mills fits best within? Defend your decision!
Response #1
Mod3 Week2
Contains unread posts
posted Jun 3, 2019 6:46 PM
Hello Class,
Strategy is what determines what direction a company goes in and how they will go in that direction. A Grand Strategy Selection Matrix (GSSM) is a tool companies use to assist with strategy generation. A GSSM is defined as an instrument that helps a company create different, feasible strategies. (Grand Strategy Matrix, n.d.). It is a quad chart that displays two aspects competitive position on the X-axis and market growth on the Y-axis.
General Mills would fit in the fourth quadrant which means they have a strong competitive position, but slow market growth. The approach they are taking towards product development keeps them ahead of the competition and makes them more competitive. There are many competitive categories their industry deals with. (General Mills, n.d.). Their industry has slow market growth in general. The only way to gain market share is to steal the competitions customers. The slow market growth and competitor brand loyalty affects their ability to take over the market, but it does not prevent their creativeness.
Their
References
General Mills. (n.d.). CSIMarket. Retrieved from https://csimarket.com/stocks/compet_glance.php?code=GIS
Grand Strategy Matrix. (n.d.). MBA Knowledge Base. Retrieved from https://www.mbaknol.com/strategic-management/grand-strategy-matrix/
Response #2
Module 3: Week 2- GSSM
Contains unread posts
posted Jun 1, 2019 3:57 PM
Like the SWOT matrix, the grand strategy and selection matrix (GSSM), is a strategic planning tool for business to use to gain insight into their options in the marketplace (Ingram, n.d.). The grand strategy matrix is a four-quadrant graph which lists “strategic options for companies in either strong or weak competitive positions in industries experiencing either rapid or slow growth” (Ingram, n.d., para.3). The good thing with this tool is that it can be used at any stage in an industry’s life cycle. Below is a diagram of the quadrants.
The grand strategy and selection matrix maps the competency of a company across two dimensions:
Type of market in which it is present: Fast growing or Slow growing
Competitive position: Dominant or Small player (Weak or strong)
These two dimensions are further depicted in relation to the four quadrants. On the x -axis the competitive position has been shown and on the Y axis market growth has been shown. The related strategies may be written in each quadrant.
The food processing industry continues to grow; however, the growth is also significantly impacted by multiple external factors such as “economic trends, climate change, demographic shifts, emerging power markets, new trade partnerships and world population growth predictions” (“Food processing”, n.d., para.3). Other areas that are consumer driven is transparency from the manufacturers, health and wellness and a continuing awareness among the masses in the developing countries (Olayanju, 2019). While it is true that the population growth in developed countries is fairly stagnated and the market is matured and relatively saturated, there is still tremendous potential in the developing countries. It can be concluded that the market is a high growth market with principal drivers.
General Mills is a huge player in the food and nutrition industry with a market presence in North America, Latin America, several emerging economies as well as different parts of the world.
Although General Mills operates in a highly competitive industry, its abundant brands and their position in the market is fairly well established across product categories. They are also constantly looking to acquire, merge or produce new products to help hold their competitive edge. Based upon this, General Mills scores relatively high in the competitive dimension of the quadrant. With these parameters, General Mills would be placed in quadrant 1 of the GSSM. The first quadrant of GSSM indicates that a company has a strong strategic position, and the company has a strong competitive advantage that they can use to grow (Farooq, 2016). Farooq also goes on to say that the strategies in the first quadrant are: market development, product development, market penetration, backward integration, forward integration, horizontal integration, and concentric diversification (2016).
Tammy
Reference
Farooq, U. (2016, May 3). Discuss the grand
