Grand Strategy Selection Matrix (GSSM) is a viable tool utilized to identify a strategical approach regarding growth and competitive stance

1))) Grand  Strategy Selection Matrix (GSSM) is a viable tool utilized to identify a  strategical approach regarding growth and competitive stance. These  four quadrants include; strong competitive position, slow market growth,  rapid market growth and weak competitive position (Grand Strategy  Matrix, 2011). General Mills, an established diverse company that has  grown increasingly over the past 40 years by shifting strategies by  branching out to diverse markets and capitalizing on new demographics. 

Quadrant  One fits best with General Mills current market position. Companies  that fall within quadrant one has a strong competitive advantage.  General Mills is one of the largest players in the food production  industry, producing a vast array of their products which help generate  $15.78B last year and a projected 7% increase for 2019 (General Mills  Revenue, n.d.). Second their market concentration has diversified with  the natural/organic and pet food surge. Recognizing that the need  capitalizing on items other than yogurt, cereal and flour to name a few.  General Mills has shifted to new strategies for new product development  is meeting the need of the consumer base and helping to bolster their  sales. This is achieved in part for their excessive resources. A big  push for sustainable farming and responsible logistic resources is a  pressing matter that Jerry Lynch is laser focused on. He is the Chef  Sustainability Officer (CSO) for General Mills. Climate change,  ecosystems, food waste and water stewardship measures fall under his  accountable objectives. 2019 helped see a 13% drop in greenhouse  emissions, an investment of $4M in soil/health initiatives and a 85%  increase of their 10 primary ingredients being sustainably sources. The  major benefit to quadrant one organizations is their ability to take  advantage of the external opportunities and amplify capital in their  varied business transactions (Grand Strategy Matrix, 2011). 

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2.)))  The  Grand Strategy Matrix is another means of classifying a corporation’s  approach to compete within the market.  It divides the environment into  four quadrants based upon the rate of market growth, slow versus rapid,  and the corporation’s relative position, strong versus weak (Kasi,  2012).  A strong competitive advantage is one in which the company has  the means to outperform its competitors with the same amount or  resourcing.  As an organization with real competitive advantage in an  industry that is experiencing some decline, General Mills’s strategy is  currently positioned in the Quadrant IV classification.

             The cereal manufacturing industry, in which General Mills hold 22% of  the market share, is projected to suffer a general decline of 0.5% per  year over the next five years (Smith, 2019).  It is anticipated that  consumer preference will shift towards healthier alternatives and also  purchase less food for home meal preparation.  Despite a recent revenue  rate decline of 1.3%, General Mills continues to offer many strong  brands that compete well within the market (General Mills, 2018).   Consumer brand loyalty helps to give General Mills an edge.  

             Grand Strategy Quadrant IV is partially defined by corporations that  need to seek and or create their own growth opportunity.  Typically,  this is realized as a diversification within the market itself or  expansive diversification into related products.  General Mills is  following this tactic with a drive towards innovation with existing food  goods; which includes pushing certain product lines towards healthier  and non-sugar-based ingredients.  Additionally, the company is pressing  forth with adding new organic food lines and yogurt-based foods.   Furthermore, it is expanding its ice cream and Nature Valley lines  (Zacks Equity Research, 2017).  This robust investment into current  products plus newer goods is an indicator that General Mills is either  attempting to get ahead of the competition to match changing consumer  preferences while also building growth opportunities within a market  that is experiencing anemic growth at best.

General Mills.  (2018).  Fiscal 2018 Annual Report,  General Mills, Inc.  Retrieved from

Kasi, A.  (2012).  Grand Strategy Matrix.  MBA-Tutorials. Retrieved from

Smith, S. IV.  (2019).  Cereal Production in the U.S.  IBISWorld Industry Report 31123, Retrieved from IBISWorld.

Zacks Equity Research.  (2017).  General Mills’ Fiscal 2018 Global Strategies to Drive Growth,  Zacks Equity Research.  Retrieved from

3.)))  The  Grand Strategy matrix formulates two dimensions creating alternative  strategies between strong and weak competitive positions and rapid and  slow market growth on four different quadrants (Francis, 2014). Each  quadrant contains different sets of strategies to maintain a competitive  edge, and a set of actions intended to gain the best position i.e.  quadrant I. In terms of where General Mills business fits between the  four quadrants of the GSSM, we can determine that the firms fall in  Quadrant II. In this quadrant, businesses exploit rapid growth  strategies when they have a weak competitive position versus other  competitors in their industry (Johnston, 2019). Based on their 2018  initiatives of competing across all geographies, differential growth and  reshaping their portfolio, General Mills has taken a more aggressive  approach to achieve competitive advantage despite headwinds affecting  their sector. Their latest quarterly report shows they have remained  strong with a 7 percent increase in net sales for the fiscal year 2019  however, their organic net sales have remain flats since 2018. In  addition, their North America segment organic net sales decreased by 1  percent.  Although trends seem to be repeating their past year with  slight improvement, General Mills has taken action demonstrating growth  on other segments. General Mills acquired Blue Buffalo Pet Products to  leverage its scale and expand distribution of pet food business.  Additionally, they divested their Green Giant brands to increase their  profit margin (General Mills, 2019). Even though General Mills faces an  uphill challenge, the company’s outlook shows steady growth long term as  they develop means to effectively target the North American segment and  boost their organic sales.



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