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222 Chapter 3 Developing Transnational Strategies: Building Layers of Competitive Advantage of cross-functie Turing, market was managed measured aga Case 3-2 United Cereal: Lora Brill's Eurobrand Challenge Kalamazoo, Michigan, grocery store. UC, as it was known in the industry, eventual diversified into snack foods, dairy products, drink and beverages, frozen foods, and baked goods.2010 UC was a $9 billion business, but break; cereals still ac- counted for one-third of its revenue and even more also competer resources, Although nication, ver top manage mundane br ing copy ar of its profits. Christopher A. Bartlett and Carole Carlson Lora Brill. United Cereal's European vice presi- dent, was alone in her office early on a cold March morning in 2010. I've given approval to a dozen big product launches in my career,” she thought. "But the implications that this one has for our European strategy and organization make it by far the most difficult I've had to make." The decision related to Healthy Berry Crunch, a new breakfast cereal that the French subsidiary wanted to launch. But Europe's changing market and competitive conditions had led Brill to con- sider making this the company's first coordinated multimarket Eurobrand launch. It was a possibility that had surfaced some equally challenging orga- nizational questions. "Well it's only 7 AM,” Brill thought to herself, smiling. “I have until my lunch appointment to decide!" UC's Corporate Values, Policies and Practices Thomas grew the company with strong set of val- ues that endured through its history and "commit- ment, diligence, and loyalty" were watchwords in UC. As a result, it attracted people who wanted to make a career with the company, and it promoted dozen sign the corpora we attacht senior exe brand mar While the could co anced de invest in petitors away, managers from within. that wh The B was in grew tion wher tem indt United Cereal: Breakfast Cereal Pioneer In 2010, United Cereal celebrated its 100th birth- day. Established in 1910 by Jed Thomas, an im- migrant grocer from England, the company's first product was a packaged mix of cracked wheat, rolled oats, and malt flakes that Thomas sold in his exc inc an Among its managers United Cereal instilled a strong commitment to "The UC Way, a set of time-tested policies, processes, and practices em bedded in iconic company phrases. For example, "Listen to the customer" was a deeply rooted be lief that led UC to become a pioneer in the use of consumer research and focus groups. "Spot the trend, make the market" was another iconic phrase reflecting the high value placed on extensive mar- ket testing prior to launching new products. Finally, the value of “Honoring the past while embrac- ing the future” led UC to reject the conventional wisdom that processed food brands had fixed life cycles. Through continuous innovation in market- ing and product development, many of its products remained market leaders despite being more than half a century old. United Cereal had a well-earned reputation as an innovator. During its 100-year history, its R&D labs had secured more product and process patents than any other competitor. The company had also pioneered the "brand management” system in the food industry, giving brand managers leadership ac С. HBS Professor Christopher A. Bartlett and writer Carole Carlson prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. ca 222 Chapter 3 Developing Transnational Strategies: Building Layers of Competitive Advantage of cross-functie Turing, market was managed measured aga Case 3-2 United Cereal: Lora Brill's Eurobrand Challenge Kalamazoo, Michigan, grocery store. UC, as it was known in the industry, eventual diversified into snack foods, dairy products, drink and beverages, frozen foods, and baked goods.2010 UC was a $9 billion business, but break; cereals still ac- counted for one-third of its revenue and even more also competer resources, Although nication, ver top manage mundane br ing copy ar of its profits. Christopher A. Bartlett and Carole Carlson Lora Brill. United Cereal's European vice presi- dent, was alone in her office early on a cold March morning in 2010. I've given approval to a dozen big product launches in my career,” she thought. "But the implications that this one has for our European strategy and organization make it by far the most difficult I've had to make." The decision related to Healthy Berry Crunch, a new breakfast cereal that the French subsidiary wanted to launch. But Europe's changing market and competitive conditions had led Brill to con- sider making this the company's first coordinated multimarket Eurobrand launch. It was a possibility that had surfaced some equally challenging orga- nizational questions. "Well it's only 7 AM,” Brill thought to herself, smiling. “I have until my lunch appointment to decide!" UC's Corporate Values, Policies and Practices Thomas grew the company with strong set of val- ues that endured through its history and "commit- ment, diligence, and loyalty" were watchwords in UC. As a result, it attracted people who wanted to make a career with the company, and it promoted dozen sign the corpora we attacht senior exe brand mar While the could co anced de invest in petitors away, managers from within. that wh The B was in grew tion wher tem indt United Cereal: Breakfast Cereal Pioneer In 2010, United Cereal celebrated its 100th birth- day. Established in 1910 by Jed Thomas, an im- migrant grocer from England, the company's first product was a packaged mix of cracked wheat, rolled oats, and malt flakes that Thomas sold in his exc inc an Among its managers United Cereal instilled a strong commitment to "The UC Way, a set of time-tested policies, processes, and practices em bedded in iconic company phrases. For example, "Listen to the customer" was a deeply rooted be lief that led UC to become a pioneer in the use of consumer research and focus groups. "Spot the trend, make the market" was another iconic phrase reflecting the high value placed on extensive mar- ket testing prior to launching new products. Finally, the value of “Honoring the past while embrac- ing the future” led UC to reject the conventional wisdom that processed food brands had fixed life cycles. Through continuous innovation in market- ing and product development, many of its products remained market leaders despite being more than half a century old. United Cereal had a well-earned reputation as an innovator. During its 100-year history, its R&D labs had secured more product and process patents than any other competitor. The company had also pioneered the "brand management” system in the food industry, giving brand managers leadership ac С. HBS Professor Christopher A. Bartlett and writer Carole Carlson prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. ca
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