A Cost Analysis of General Mills Essay

1974 Words Nov 25th, 2012 8 Pages
GENERAL MILLS, INCORPORATED
A Cost Accounting Analysis

COMPANY BACKGROUND
General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best
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The Bakeries and Foodservice segment includes cereals, snacks, yogurt, unbaked and fully baked frozen dough products, baking mixes, and flour. These products are branded to the customers (stores). These are the store brand products seen on the shelf of almost every grocery and convenience store. An example of such a product would be “Giant Food” brand chocolate chip cookie dough.

COMPETITORS – Kellogg and Kraft
Kraft is one of the largest food manufacturing companies in the world-manufacturing brand. Eleven of the brands Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia and Trident, generate more than $1 billion dollars of revenue annually.

Kellogg Company, also one of the largest food manufacturing companies in the world manufactures a variety of cereals and snacks to include Kashi go lean, Rice Crispies, Fruit Loops and Special K, Keebler brand cookies and Pop-Tarts to name a few. That is just a small sampling of their vast products. Kellogg’s sales for 2011 were more than $13 billion.

INCREASE IN TOTAL NET SALES

In fiscal year 2011 The US Retail segment of GSI had net sales decreased by less than a percentage point compared the sectors net sales in 2010 though the overall company net sales increased from 2010 by 2%. The reason for the flat net sales in the US Retail segment was explained to be the result of a cautious consumer market in uncertain economic times. To offset this the company increased

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