The Financial Performance of Kraft and General Mills Essays

INTRODUCTION TO ACCOUNTING amp; FINANCE In this report, we will analyze the financial performance of two companies: Kraft and General Mills. They are global consumer foods companies that develop different packaged food products. The main goals of these companies are to meet consumers’ needs and preferences while generating superior returns by delivering consistent growth in sales and earnings, coupled with an attractive dividend yield. This report shows how each company meets their goals and which one is in better standing. nbsp;nbsp;nbsp;nbsp;nbsp;The report will give an overview of each company, an explanation of what type of companies we are analyzing, the purpose of each company in terms of its goals and objectives, the†¦show more content†¦Kraft Foods has 197 manufacturing facilities worldwide. Kraft Foods has several strategies for long-term success: building superior brand value, transforming their portfolio, expanding the global scale of the business, and driving out cost and assets. More product benefits means innovative packaging, consistent high quality, wide availability, and strong brand images. This way they can shift their product portfolio accordingly. In terms of global expansion, Kraft Foods is developing business in many international markets while concentrating especially on the fastest growing developing market around the world. General Mills is an international company, similar to Kraft, in the food processing industry. The brands General Mills sells include Betty Crocker, Haagen Dazs, Nestle, Yoplait, and Pillsbury. In 1990, Cereal Partners Worldwide was started by General Mills and Nestle as a joint venture to market breakfast cereals for Europe and America. The cereals that are distributed by Cereal Partners Worldwide are manufactured by both companies under the Nestle brand. General Mills merged with Pillsbury in 2001 so General Mills now manufactures many of the products that carry the Pillsbury name. In analyzing each company in itself, and against the other, we would most instantly benefit from acknowledging trends. These trends can be found on the left side of the attached list of calculated ratios. The terms â€Å"peak† and â€Å"dip† refer to ratios that noticeably peaked orShow MoreRelatedAnalysis of Kraft Foods Inc.4016 Words   |  17 PagesAnalysis of Kraft Foods Inc. Executive Summary The following report is an evaluation of Kraft Foods Inc. from both an internal and external perspective using fundamental and technical analysis. Kraft Foods Inc. is a worldwide food company operating within the Packaged Foods industry. 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COMPETITIVE REACTION TO MARKET With major players at the top of the consumer packaged foods industry, the threat of new product entrants is relatively high across major competitors (Kraft Foods Group, Inc., Campbell Soup Co., Kellogg Co., ConAgra Foods, Inc. and PepsiCo Inc.). It is assumed that these top-earning competitors will continue to diversify their product offering to various organic products. Additionally, pressure from consumersRead MoreUse Of Strategic Risk Management Procedures Essay1252 Words   |  6 Pages2 FOCUS ON THE STUDY The aim of this study is to investigate if the use of strategic Risk Management procedures can assist to minimise the impact of FinTech in financial services practices? Technology is ever changing and adapting, we have sped past Moore’s Law which stated â€Å"That the number of transistors in a dense integrated circuit doubles approximately every two years† that technology is be ever evolving (Brock and Moore, 2006). 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(ExactRead MoreÔà ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºGeneral  ¬Ã¢â‚¬  Mills‚Äà ´  ¬Ã¢â‚¬   Acquisition of Pillsbury from Diageo Plc7222 Words   |  29 Pagesï ¿ ¼Ã¯ ¿ ¼Ã¯ ¿ ¼Ã¯ ¿ ¼General   Mills’    Acquisition of Pillsbury from Diageo PLC Lauren Sherlock Jason Park JP Zendman 12/9/2009 ï ¿ ¼ ï ¿ ¼General   Mills’   Acquisition   of   Pillsbury   from   Diageo   PLC Situation Analysis: In December 2000, management at General Mills (GM) proposed a plan to acquire Pillsbury, a baked- goods producer, in a stock-for-stock exchange. Pillsbury is currently controlled by Diageo PLC, one of the world’s leading consumer–goods companies. The deal specifies that General Mills is to create