AFM333 Lecture Notes - Lecture 18: Decision Matrix, Niche Market, Brand Management

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM333
• Professor: Mark Anarson

Document Summary

United cereal: global grocery food company, 1/3 of their revenue comes from breakfast food, 9billion in revenues in total 3billion comes from cereal. Market place globally is 21 billion so uc has 1/7 globally. Global growth in the market is flat (less than 1% per year) need to take profits from competitors. Cost structure is higher because of cost of european structure (look at org chart!) each country has a manager! (20 countries in europe vs. 3 in states!) Cogs will change but sga doesn"t change with revenue. Every manager is making decisions about how to market, etc. --> unnecessary) Strong sense of company culture uc way, time tested policies, processes, practices belief of listening to the customer spot the trend, make the market (market testing before launching products) honor past, embrace future. R&d labs more product and process patents than any other competitor brand management system in the food industry (cross- functional teams with manufacturing, marketing, etc. )