Breakfast Cereals in United Kingdom 2007
Introduction:
Aim:
The aim of this report is to discuss whether
The change of macroeconomic situation is an opportunity or threat for United Kingdom’s breakfast cereal industry.
Compare the external microenvironment that affects firms in which breakfast cereal industry operates with the help of PEST analysis.
To evaluate the operational strategy that affects the level of competitive environment in an industry using Porter’s five force model.
Why I chose this industry:
Cereals are a great start to the day.
“Breakfast like a king, lunch like a prince and dine like a pauper." By Adelle Davis
Like most proverb says, this one hold more than a gram of truth. Breakfast cereals are certainly the most important meal of the day. It is a time when we ‘Break the Fast’ of the night, which can be anything up to 10 or 12 hours. The nutritional benefits of breakfast, facts suggest that this important meal provide a number of other benefits to give us the best start of the day. Breakfast cereals industry is diverse and has come up with new exciting flavors. There is an increase in the market with consumption of oats, muesli and high- fiber cereals, since 2002. Without doubt, health is the key factor that drives the expansion of the industry and consumption. This is one of the most growing industries despite the market is saturated and that cereals have been facing increasingly fierce pressure from alternatives, such as cereals bars and croissants.
The breakfast cereal in United Kingdom has also grown in value terms increasing by an estimated 9.5% between 2002 and 2006, to £1.23bn at retail selling prices (RSP) reflecting the growth in volume and the shift towards premium – price ...