Voluntary restructuring : The case of General Mills

Abstract This paper presents a detailed case history of voluntary restructuring by General Mills. During the 1980s the company reversed the extensive diversification of the two preceding decades by returning to its traditional core of packaged foods and food-related services. Drawing extensively on field interviews with the parties directly involved in the decision process, the paper explains the rationale behind both the structuring and the restructuring process. It highlights the role of the internal corporate governance process, the internal and external forces for change, and the consequences for financial performance and shareholder value.