Comment to Peer Response DQ1DA and DQ2 KD Essay Example | Topics and Well Written Essays - 250 words

Comment to Peer Response DQ1DA and DQ2 KD - Essay Example When this other companies joined the cereal production the company realized a shortfall in its earnings with a drop of about 6% sales due to continued competitive pressures in the ready to eat cold cereal market, and the reduced sales. Customers have also faced a short based on the value and nutrition. This also creates competition to the companies due to deal-seeking on finding the largest market (Michaels, 2011). Addressing the issue of fresh entrants into this kind of market calls for critical managerial skills with critical analysis is the present market (White, 2008). The managers should anticipate the actions of others (Shubik, 2009). An increase in price by other companies especially top dogs will lead to the company also adjusting its market price. In the cereals industry General mills announced a price increase in the price by +4% on 25% to 33% of its products. Kellogg’s is likely to respond the same way. The strategies set to put the sales back on track will ensure the reinvestment into the business, with the lowering of the up-front cost of shares to 12 cents; the internal growth will be expected to rise with the general improvement in category trends such as product promotions to the outside world. This will ensure that the 4.5% fall in customer demand is raised for the company to begin making profit (Friedman,