Harvard Case - Growing Better Together: General Mills Considers Pre-Competitive Collaboration to Advance Sustainable Supply Chains
"Growing Better Together: General Mills Considers Pre-Competitive Collaboration to Advance Sustainable Supply Chains" Harvard business case study is written by Andrew Hoffman. It deals with the challenges in the field of Strategy. The case study is 14 page(s) long and it was first published on : Apr 24, 2020
At Fern Fort University, we recommend General Mills pursue a pre-competitive collaboration strategy to advance sustainable supply chains. This approach involves partnering with key stakeholders, including competitors, suppliers, NGOs, and research institutions, to address shared challenges and develop innovative solutions. This strategy will leverage the collective expertise and resources of all participants, enabling General Mills to achieve greater impact and drive positive change in the agricultural and food systems.
2. Background
General Mills, a global food company, faces mounting pressure to improve its environmental and social impact. The company recognizes the need to transform its supply chains to address sustainability challenges, including climate change, resource depletion, and social equity. The case study highlights the company's exploration of pre-competitive collaboration as a potential solution.
The main protagonists in this case study are:
- General Mills: The company seeking to improve its sustainability performance.
- Competitors: Other food companies facing similar challenges and potential partners in collaboration.
- Suppliers: Agricultural producers and other businesses in the supply chain.
- NGOs: Non-profit organizations working on sustainability issues.
- Research institutions: Universities and other organizations conducting research on agriculture and sustainability.
3. Analysis of the Case Study
To analyze the case, we'll utilize several frameworks:
- Porter's Five Forces: This framework helps assess the competitive landscape and identify opportunities for collaboration. The food industry is characterized by strong competition, high bargaining power of buyers, and a growing threat of substitutes. This environment underscores the need for collaboration to address shared challenges and create a more sustainable future.
- Value Chain Analysis: Examining the value chain reveals opportunities for collaboration across different stages, from sourcing raw materials to product development and distribution. By working together, companies can optimize processes, reduce costs, and improve environmental and social outcomes.
- SWOT Analysis: This framework helps identify General Mills' strengths, weaknesses, opportunities, and threats. Strengths include brand recognition, strong financial resources, and a commitment to sustainability. Weaknesses include reliance on traditional agricultural practices and potential vulnerability to supply chain disruptions. Opportunities include the growing consumer demand for sustainable products and the emergence of innovative technologies. Threats include climate change, resource scarcity, and regulatory pressure.
- Business Model Innovation: Pre-competitive collaboration can drive business model innovation by enabling the development of new solutions and value propositions. This can lead to cost reduction, increased efficiency, and enhanced customer value.
4. Recommendations
General Mills should implement the following steps to successfully pursue pre-competitive collaboration:
- Identify Key Partners: Identify potential partners with shared interests and complementary expertise, including competitors, suppliers, NGOs, and research institutions. This can be achieved through market research, industry events, and networking.
- Define Clear Goals and Objectives: Establish specific, measurable, achievable, relevant, and time-bound goals for the collaboration. This will ensure that all partners are aligned on the desired outcomes and can track progress effectively.
- Develop a Collaborative Framework: Establish a clear governance structure, communication protocols, and decision-making processes to ensure smooth collaboration and minimize conflicts.
- Invest in Shared Resources: Allocate resources for joint research, technology development, and capacity building initiatives. This could involve funding, personnel, and infrastructure.
- Promote Open Innovation: Encourage the sharing of knowledge, data, and best practices among partners. This will foster innovation and accelerate progress towards achieving common goals.
- Monitor and Evaluate Progress: Regularly assess the effectiveness of the collaboration and identify areas for improvement. This will ensure that the initiative remains aligned with strategic goals and delivers tangible results.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The pre-competitive collaboration strategy aligns with General Mills' core competencies in supply chain management, product development, and brand building. It also supports the company's mission to nourish people and the planet.
- External Customers and Internal Clients: The collaboration will benefit external customers by providing access to more sustainable products. It will also benefit internal clients by improving supply chain efficiency and reducing risk.
- Competitors: The collaborative approach recognizes that competitors face similar challenges and can benefit from working together. It promotes a win-win scenario where all participants contribute to a more sustainable food system.
- Attractiveness: The potential benefits of pre-competitive collaboration include:
- Reduced costs: By sharing resources and expertise, companies can reduce costs associated with research, development, and implementation of sustainable practices.
- Improved efficiency: Collaboration can lead to more efficient supply chains and improved resource utilization.
- Enhanced innovation: Joint efforts can accelerate the development of new technologies and solutions for sustainable agriculture and food production.
- Increased brand value: Participating in collaborative initiatives can enhance brand reputation and attract environmentally conscious consumers.
- Reduced regulatory risk: Working together to address sustainability challenges can help companies stay ahead of regulations and avoid potential penalties.
6. Conclusion
Pre-competitive collaboration offers a powerful approach for General Mills to advance sustainable supply chains. By working with key stakeholders, the company can leverage collective expertise, resources, and innovation to drive positive change in the agricultural and food systems. This strategy aligns with General Mills' core competencies, supports its mission, and presents significant opportunities for cost reduction, efficiency gains, and brand enhancement.
7. Discussion
Alternative approaches to achieving sustainability goals include:
- Independent action: General Mills could pursue sustainability initiatives independently, but this approach would be slower and less impactful.
- Mergers and acquisitions: Acquiring companies with strong sustainability practices could accelerate progress, but this strategy carries significant financial and operational risks.
Key risks associated with pre-competitive collaboration include:
- Coordination challenges: Managing complex partnerships and ensuring alignment among diverse stakeholders can be challenging.
- Intellectual property protection: Sharing sensitive information with competitors requires careful consideration of intellectual property rights.
- Trust and transparency: Building trust and ensuring transparency among partners is crucial for successful collaboration.
8. Next Steps
General Mills should implement the following steps to initiate and manage the pre-competitive collaboration:
- Phase 1 (Year 1): Develop a strategic plan, identify key partners, and establish a collaborative framework.
- Phase 2 (Year 2-3): Pilot collaborative projects, share resources, and monitor progress.
- Phase 3 (Year 4+): Scale up successful initiatives, expand partnerships, and measure impact.
By taking these steps, General Mills can successfully leverage pre-competitive collaboration to advance sustainable supply chains, create a more sustainable food system, and enhance its competitive advantage in the long term.
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Case Description
It was mid-March 2019 and General Mills had just announced its commitment to advance regenerative agriculture practices on one million acres of farmland by 2030. It was an ambitious initiative but Kevin O'Donnell, General Mills' global director for sourcing & operations sustainability, was focused on advancing this holistic method of farming in order to protect and enhance the world's natural resources. Still, he wondered if his company could do more. He kept thinking about the 2018 Responsible Business Summit in New York City where he heard former Unilever CEO Paul Polman speak about a novel concept called pre-competitive collaboration. O'Donnell thought this notion had the potential to enable an even more sustainable agricultural supply chain, not only for General Mills, but the entire cereal industry. Could he and his team successfully integrate pre-competitive collaboration into the regenerative agriculture initiative?
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