United Cereal: Lora Brill's Euro brand challenge
EXECUTIVE SUMMARY:
The company is well expanded all over Europe and so is its business structure. The business structure of the organization is very segregated and distributed. The trends of the market that the company operates in has changed over the time and the old, historical and cultural foods and products are no more a priority of customers and population all over Europe. The product base of the company and the variety also differ from country to country as these managers pursue the tastes of the markets they operate in.
The market has become quite health conscious and prefers products based on these characteristics. Also due to the recession and increase in the competitors in the market the company is finding hard to cope up and maintain its traditional policies and strategies. The business structure that the business currently operates on is a very segregated and de-centralized structure. It is more like separate divisions that operate largely independently in every country as they are solely responsible for their costs, revenues, profits and marketing and advertisement campaigns.
The changing trend of the market has now evolved to health based products and the management of the company is at odds to decide to what would be the new product that the company offers. The Health Berry Crunch has potential to attract new customers in France and few other countries but the organization is at a cross roads to decide whether to launch the product as per their new strategy of Euro Brand or pursue some other product with this approach.
INTRODUCTION:
The case study is about a breakfast company United Cereal (UC) that specializes and serves breakfast food products based on roasted grains to its customers at its chains and outlets all over Europe. The company is well established and expanded today, since it`s foundations were laid in early 1900`s by Jed Thomas. The company initially started as sort of a grocery store but the services and products of the company have evolved over the time with its growth and expansion.
It now deals with a wide variety of products like snacks, dairy products and baked products for its customers other than serving breakfasts to them.
The trends of the market that the company operates in has changed over the time and the old, historical and cultural foods and products are no more a priority of customers and population all over Europe.The societies and population of the market is very conscious and it is now shifting to health based products and this is a major shift because the traditional products of the company have large quantities of sugar. This is a serious development and the management of the company has to adapt to it to sustain its profits and market demand.
The company is well expanded all over Europe and so is its business structure. The business structure of the organization is very segregated and distributed as the country managers are appointed by the company for every market they operate in. these managers are quite authoritative and responsible for product offerings, market surveys, advertisement and marketing campaigns.
The product base of the company and the variety also differ from country to country as these managers pursue the tastes of the markets they operate in. Although this strategy was relevant in the past as the population preferred traditional food and products and the profits of the company was higher but, that has changed over the time as the market has become quite health conscious and prefers products based on these characteristics. Also due to the recession and increase in the competitors in the market the company is finding hard to cope up and maintain its traditional policies and strategies.
It is due to this reason that the new leader of the company is keen on revisiting the business strategy to attend this new shift and revise the company`s financial performance. The gap and taste of the market is fast eroding and an increasing population of Europe is based on health conscious products. The new initiative the she is proposing will enable the company to centralize its business in some ways and enable the company to attend the changing tastes of the customers...................
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