Business Policy

Cereal patience
Page of contents

Introduction

PESTEL analysis
Politics
Economical
Social
Technological
Environmental
Legal

Porters five forces model
Barriers for in the altogether entrants
Rivalry
Buyers power
Suppliers power
Substitute

Conclusion

References

Introduction

Breakfast metric grain manufacturing companies is an industry which makes packaged cereal such as oatmeal and farina that must be cooked prior to eat. This doesnt include manufacturing of breakfast bars or packaged cereal snacks. Although there ar about 40 companies in the cereal industry with more than 400 brands but more than 86% output is universe produced by only few major companies since 1980 (Kellogg, General Mills, nestle joint venture with general mills in 1990, supporter Oats, and Post). (Jeffrey J. Reimer and John M. Connor)

PESTEL OR EXTERNAL ANALYSIS

The external (or PESTEL) analysis is a useful strategic tool to analyse factors which are external the control of the industry itself. These factors are:

Political

There are cardinal big cereal companies (Kellogg, General Mills, Quaker Oats and post). These companies are in operation(p) with more than 86 % share of the whole market.



Different governments guide tried to break this oligopoly time to time but they failed to do so and could not break them. After 1970 industry lay out that these four companies share was increased from 40% (1940) to 90% (1970). So the critics charged them with cooperating their strategy and creating a shared monopoly.

After this FTC (Federal dispense Commission) started to investigate but these four companies successfully blocked these allegations because they had nice relations with the member of congress who helped these companies by blocking possible legislation. However government have stopped the case against these companies later spending more than 15 years and countless sum of money of money.

Opportunities:

1. With the help of the industrys congress member friends industry has created high...If you want to get a full essay, order it on our website: Ordercustompaper.com



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