General Mills, Inc. (NYSE: GIS) is an American Fortune 500 corporation, primarily concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's, Pillsbury, Green Giant, Old El Paso, Häagen-Dazs, Cheerios, Lucky Charms and Wanchai Ferry. Their brand portfolio includes more than 100 leading U.S. brands and numerous category leaders around the world.[2]

While the UK aerospace industry is characterized by a large number of SMEs, the sector is ultimately dominated by supplier relationships with BAE Systems, Rolls Royce, and Airbus. Although there has been significant coverage of the difficulties encountered by Airbus recently, the UK government and regional bodies have been very active in striving to maintain Airbus operations in the United Kingdom. This is despite the fact that BAE Systems no longer owns a 20% stake in the company. The Airbus UK workforce is highly skilled and specialized, and the firm maintains capabilities, including composites, which are considered vital to the United Kingdom’s future development as an aerospace center. As a consequence of the ‘Power 8’ reforms, Airbus has announced that it will sell a number of plants across Europe, including Filton in southwest England. GKN was selected as the winning bidder for the Filton site, ahead of U.S.-owned Spirit AeroSystems, which owns facilities at Prestwick and Samlesbury. The sole remaining Airbus plant in the United Kingdom is located at Broughton, in north Wales.

In both the civil and defense sectors, U.S. manufacturers are well represented in the United Kingdom. Honeywell, Raytheon, Rockwell Collins, Lockheed Martin and Goodrich all have major operations in the United Kingdom, either through subsidiaries or directly managed facilities. Transatlantic relations are critically important to the UK aerospace sector. According to the Society of British Aerospace Companies (SBAC), UK aerospace companies employ nearly 35,000 people in the U.S. and are responsible for creating over $9.2 billion in revenue annually.

Similarly, a wide range of U.S. firms are well established in the UK market. Around one-fifth of the SBAC’s members are U.S.-owned, and the Society is developing ever-closer ties to the Aerospace Industries Association of America (AIA). BAE Systems remains one of the world’s largest defense companies, and has a leading role on a range of projects that include the F35 Joint Strike Fighter, the Hawk 128 trainer, the Eurofighter Typhoon, and the upgrade of the Nimrod MRA4 reconnaissance aircraft. In addition to BAE Systems, Airbus, and Rolls Royce, the United Kingdom is home to a wide variety of well-established tier one suppliers. Leading firms are listed in the table below. Some, such as GKN, Cobham and Ultra Electronics, have strong transatlantic ties and sizeable operations in North America. U.S. suppliers should consider each of these firms as a prospective buyer interested in the UK market.

Leading UK-Based Aerospace Companies (2006, by Revenue)

2006 Turnover ($ million) Sales Growth 2005-2006 Global Rank*

BAE Systems 27,530 9% 5
Rolls-Royce 10,688 7% 14
Smiths Group 7,046 15% 27
Cobham 2,030 -9% 36
GKN 1,390 9% 45
Meggitt 1,340 7% 48
Ultra Electronics 754 8% 68
Note: Position in the Flight International Aerospace Top 100, August 2006 Smiths Aerospace was acquired by GE in January 2007

Source: Flight International, SBAC, company information

One challenge to the U.S. position in the UK market comes from the world’s emerging markets, which are increasingly well represented as low-cost suppliers to the larger UK aerospace companies. A March 2005 report by the House of Commons Trade and Industry Committee repeated an earlier warning from the Farnborough Aerospace Consortium that “between 30% and 50% of the UK aerospace industry’s smaller suppliers could close due to competition from low-cost economies”. Despite the warnings, this is an area that is yet to be fully examined by the UK aerospace industry, and the timescale for such apparently dramatic change remains unclear.

Prospective Buyers
Much of the aerospace industry is engaged in the supply chain for major manufacturers, with government procurement a rather less significant source of business. The SBAC reports that sales to UK government, worth $7.3 billion in 2006, represented just 18% of total turnover in the industry. By contrast, the figure is typically closer to 26% elsewhere in the EU, and around 51% in the U.S. Of all prospective buyers, the maintenance, repair and overhaul (MRO) sector continues to present some of the most valuable opportunities. MRO revenues increased 8% to $12.3 billion in 2006, of which aircraft and engine manufacturers now account for over two-thirds of the total, up from around half in 2001. Moreover, UK companies today claim a 17% share of the worldwide MRO market, and several of the major airlines have sizeable maintenance operations, particularly British Airways Engineering, Monarch, and Virgin Atlantic. Each of the major airlines, as well as rapidly-emerging low cost and regional airlines including FlyBe and Eastern Airways also present opportunities in other areas, as buyers of in-flight entertainment, flight safety, in-flight catering, and a variety of other equipment.

Top 10 UK Airlines by Available Capacity (October 2007)

Output in Available Seat Percentage of All UK Airline
Seat Kilometers ('000.000) Available Seat Kilometres

British Airways 147,804 37.2
Virgin Atlantic Airways 52,455 13.2
Easyjet 36,771 9.3
Thomsonfly 26,874 6.8
First Choice Airways 18,023 4.5
Monarch Airlines 17,956 4.5
Thomas Cook Airlines 17,818 4.5
Mytravel Airways 13,514 3.4
BMI Group 13,442 3.4
XL Airways UK Ltd. 12,289 3.1
Source: Civil Aviation Authority (CAA)

Market Entry
Consolidation within the supply chain has had a major impact on UK distributors, a trend reinforced by the adoption of online procurement portals by prime contractors such as BAE Systems and Rolls Royce. In addition, trade shows such as the Farnborough International Airshow (FIA) and the Airline Purchasing Expo (held in London), remain an excellent means by which to meet potential distributors and by which the distributors themselves seek new leads. However, U.S. companies should familiarize themselves with leading online procurement portals, including:

AirbusSupply.
BAA plc’s AMA-net and airportsmart.com.
Third-party procurement portals, such as Exostar, an open Internet trading exchange founded in 1999
by BAE Systems, Boeing, Lockheed Martin and Raytheon. Rolls Royce is also a partner in the scheme.

For defense:
The MoD’s Defence Contracts Bulletin, available at www.contracts.mod.uk
The European Defence Agency’s (EDA) Electronic Bulletin Board, which lists government
tenders as well as contract and sub-contract opportunities with some of Europe’s largest defense companies. Available online at www.eda.europa.eu/ebbweb

Within the United Kingdom, companies might also consider an approach based around participation in a cluster of suppliers organized by regional trade bodies, such as the Midlands Aerospace Alliance, the Farnborough Aerospace Consortium, Northern Defence Industries or the North West Aerospace Alliance. These selective teaming arrangements are increasingly important and are recognized by industry and government alike. Networking opportunities within the supply chain also arise from initiatives of the Society of British Aerospace Companies (SBAC), such as Supply Chain 21 (SC21). For smaller U.S. companies, however, the initial route to market will still typically involve the appointment of a suitably qualified agent, representative or distributor.

Market Issues and Obstacles

In civil aerospace, the regulatory environment has been transformed in recent years, with European organizations having taking over responsibilities from individual national authorities. The European Aviation Safety Agency (EASA), based in Cologne, Germany, today has responsibility for aircraft and product certification as well as for rules related to the design and maintenance of aircraft products and parts. In addition, EASA sets the standards for organizations involved in the design, production and maintenance of aircraft products and parts.

In the United Kingdom, the Civil Aviation Authority’s (CAA) Safety Regulation Group acts as the executive arm of EASA, and additionally serves to develop and uphold national regulations in areas where EASA does not yet have full oversight, such as flight crew licensing and air traffic management. The Safety Regulation Group can be contacted at:

Safety Regulation Group Civil Aviation Authority Aviation House Gatwick Airport South West Sussex RH6 0YR Tel.: +44 (0) 1293 567171

For airworthiness issues, enquiries should be directed to the CAA’s Flight Operations and Airworthiness team. Companies also must be aware of a European Commission requirement, implemented by EASA, that all design organizations must be certified under their Design Organization Approval (DOA) rules. Approvals of minor and major aircraft modifications are directly affected by this process, and more detailed advice for U.S. firms and aircraft owners should be sought through the CAA.

For manufacturers of large civil aircraft, and their engines, the aircraft subsidy issue has proven a major source of debate and concern. Despite protracted and continuing U.S.-EU negotiations in this area, Airbus proceeded in 2006 to request further financial launch aid assistance for the A350 from the French government, while in the United Kingdom, the Labour Government has publicly indicated its willingness to render aid in support of UK-based component manufacture for the development of this aircraft.

With regard to defense aerospace, in addition to U.S. export licensing requirements, such as ITAR and EAR, companies should also be aware of the UK licensing regime, overseen by the Department of Business, Environment and Regulatory Reform (BERR) and enforced by HM Revenue and Customs (HMRC). Import regulations are harmonized with those of the EU, and relate specifically to firearms, nuclear materials, and antipersonnel landmines (contact the Import Licensing Branch for further information). This UK export licensing policy, particularly the Export Control Act of 2002, is of significant importance for most U.S. defense companies. This places controls not only on the export of goods, but also on the transfer of technology and on trafficking and brokering activity. U.S. firms need to be aware of these provisions as they can cover negotiations with any party from a third-country held in the UK, including discussions at trade shows. The Export Control Organisation, another department within BERR, offers a comprehensive resource online.

In bidding for work, firms should note that the MoD contracts to the Quality Assurance Requirements of the NATO Allied Quality Assurance Publications (AQAP) 2000 series. As a consequence, Invitations to Tender often (but not always) include a requirement for companies to have in place a certificated management system – that is, ISO 9001:2000, obtained from a third-party certification body approved by the UK Accreditation Service (UKAS) or a signatory to the International Accreditation Forum – Multi Lateral Agreement (IAF-MLA). As a further consideration, for larger programs, the United Kingdom has a published Industrial Participation (IP) policy, currently implemented by the Defence Export Services Organisation (DESO). The issue of IP arises where the offshore content of any work exceeds $20 million in value. IP proposals are submitted along with a company’s response to a specific Invitation to Tender (ITT), and are confirmed in a Letter of Agreement (LoA) negotiated with DESO. IP policy is typically applicable only to larger U.S. contractors involved in major projects, for whom the resulting need to engage with a variety of UK companies, often SMEs, represents a good opportunity to demonstrate commitment to the UK market. This can be valuable when competing for subsequent work. Please note that the functions of DESO will be transferred in mid 2008 to a new Defence and Security Group within UK Trade & Investment, an agency of BERR.
 
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General Mills, Inc. (NYSE: GIS) is an American Fortune 500 corporation, primarily concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's, Pillsbury, Green Giant, Old El Paso, Häagen-Dazs, Cheerios, Lucky Charms and Wanchai Ferry. Their brand portfolio includes more than 100 leading U.S. brands and numerous category leaders around the world.[2]

While the UK aerospace industry is characterized by a large number of SMEs, the sector is ultimately dominated by supplier relationships with BAE Systems, Rolls Royce, and Airbus. Although there has been significant coverage of the difficulties encountered by Airbus recently, the UK government and regional bodies have been very active in striving to maintain Airbus operations in the United Kingdom. This is despite the fact that BAE Systems no longer owns a 20% stake in the company. The Airbus UK workforce is highly skilled and specialized, and the firm maintains capabilities, including composites, which are considered vital to the United Kingdom’s future development as an aerospace center. As a consequence of the ‘Power 8’ reforms, Airbus has announced that it will sell a number of plants across Europe, including Filton in southwest England. GKN was selected as the winning bidder for the Filton site, ahead of U.S.-owned Spirit AeroSystems, which owns facilities at Prestwick and Samlesbury. The sole remaining Airbus plant in the United Kingdom is located at Broughton, in north Wales.

In both the civil and defense sectors, U.S. manufacturers are well represented in the United Kingdom. Honeywell, Raytheon, Rockwell Collins, Lockheed Martin and Goodrich all have major operations in the United Kingdom, either through subsidiaries or directly managed facilities. Transatlantic relations are critically important to the UK aerospace sector. According to the Society of British Aerospace Companies (SBAC), UK aerospace companies employ nearly 35,000 people in the U.S. and are responsible for creating over $9.2 billion in revenue annually.

Similarly, a wide range of U.S. firms are well established in the UK market. Around one-fifth of the SBAC’s members are U.S.-owned, and the Society is developing ever-closer ties to the Aerospace Industries Association of America (AIA). BAE Systems remains one of the world’s largest defense companies, and has a leading role on a range of projects that include the F35 Joint Strike Fighter, the Hawk 128 trainer, the Eurofighter Typhoon, and the upgrade of the Nimrod MRA4 reconnaissance aircraft. In addition to BAE Systems, Airbus, and Rolls Royce, the United Kingdom is home to a wide variety of well-established tier one suppliers. Leading firms are listed in the table below. Some, such as GKN, Cobham and Ultra Electronics, have strong transatlantic ties and sizeable operations in North America. U.S. suppliers should consider each of these firms as a prospective buyer interested in the UK market.

Leading UK-Based Aerospace Companies (2006, by Revenue)

2006 Turnover ($ million) Sales Growth 2005-2006 Global Rank*

BAE Systems 27,530 9% 5
Rolls-Royce 10,688 7% 14
Smiths Group 7,046 15% 27
Cobham 2,030 -9% 36
GKN 1,390 9% 45
Meggitt 1,340 7% 48
Ultra Electronics 754 8% 68
Note: Position in the Flight International Aerospace Top 100, August 2006 Smiths Aerospace was acquired by GE in January 2007

Source: Flight International, SBAC, company information

One challenge to the U.S. position in the UK market comes from the world’s emerging markets, which are increasingly well represented as low-cost suppliers to the larger UK aerospace companies. A March 2005 report by the House of Commons Trade and Industry Committee repeated an earlier warning from the Farnborough Aerospace Consortium that “between 30% and 50% of the UK aerospace industry’s smaller suppliers could close due to competition from low-cost economies”. Despite the warnings, this is an area that is yet to be fully examined by the UK aerospace industry, and the timescale for such apparently dramatic change remains unclear.

Prospective Buyers
Much of the aerospace industry is engaged in the supply chain for major manufacturers, with government procurement a rather less significant source of business. The SBAC reports that sales to UK government, worth $7.3 billion in 2006, represented just 18% of total turnover in the industry. By contrast, the figure is typically closer to 26% elsewhere in the EU, and around 51% in the U.S. Of all prospective buyers, the maintenance, repair and overhaul (MRO) sector continues to present some of the most valuable opportunities. MRO revenues increased 8% to $12.3 billion in 2006, of which aircraft and engine manufacturers now account for over two-thirds of the total, up from around half in 2001. Moreover, UK companies today claim a 17% share of the worldwide MRO market, and several of the major airlines have sizeable maintenance operations, particularly British Airways Engineering, Monarch, and Virgin Atlantic. Each of the major airlines, as well as rapidly-emerging low cost and regional airlines including FlyBe and Eastern Airways also present opportunities in other areas, as buyers of in-flight entertainment, flight safety, in-flight catering, and a variety of other equipment.

Top 10 UK Airlines by Available Capacity (October 2007)

Output in Available Seat Percentage of All UK Airline
Seat Kilometers ('000.000) Available Seat Kilometres

British Airways 147,804 37.2
Virgin Atlantic Airways 52,455 13.2
Easyjet 36,771 9.3
Thomsonfly 26,874 6.8
First Choice Airways 18,023 4.5
Monarch Airlines 17,956 4.5
Thomas Cook Airlines 17,818 4.5
Mytravel Airways 13,514 3.4
BMI Group 13,442 3.4
XL Airways UK Ltd. 12,289 3.1
Source: Civil Aviation Authority (CAA)

Market Entry
Consolidation within the supply chain has had a major impact on UK distributors, a trend reinforced by the adoption of online procurement portals by prime contractors such as BAE Systems and Rolls Royce. In addition, trade shows such as the Farnborough International Airshow (FIA) and the Airline Purchasing Expo (held in London), remain an excellent means by which to meet potential distributors and by which the distributors themselves seek new leads. However, U.S. companies should familiarize themselves with leading online procurement portals, including:

AirbusSupply.
BAA plc’s AMA-net and airportsmart.com.
Third-party procurement portals, such as Exostar, an open Internet trading exchange founded in 1999
by BAE Systems, Boeing, Lockheed Martin and Raytheon. Rolls Royce is also a partner in the scheme.

For defense:
The MoD’s Defence Contracts Bulletin, available at www.contracts.mod.uk
The European Defence Agency’s (EDA) Electronic Bulletin Board, which lists government
tenders as well as contract and sub-contract opportunities with some of Europe’s largest defense companies. Available online at Procurement Gateway

Within the United Kingdom, companies might also consider an approach based around participation in a cluster of suppliers organized by regional trade bodies, such as the Midlands Aerospace Alliance, the Farnborough Aerospace Consortium, Northern Defence Industries or the North West Aerospace Alliance. These selective teaming arrangements are increasingly important and are recognized by industry and government alike. Networking opportunities within the supply chain also arise from initiatives of the Society of British Aerospace Companies (SBAC), such as Supply Chain 21 (SC21). For smaller U.S. companies, however, the initial route to market will still typically involve the appointment of a suitably qualified agent, representative or distributor.

Market Issues and Obstacles

In civil aerospace, the regulatory environment has been transformed in recent years, with European organizations having taking over responsibilities from individual national authorities. The European Aviation Safety Agency (EASA), based in Cologne, Germany, today has responsibility for aircraft and product certification as well as for rules related to the design and maintenance of aircraft products and parts. In addition, EASA sets the standards for organizations involved in the design, production and maintenance of aircraft products and parts.

In the United Kingdom, the Civil Aviation Authority’s (CAA) Safety Regulation Group acts as the executive arm of EASA, and additionally serves to develop and uphold national regulations in areas where EASA does not yet have full oversight, such as flight crew licensing and air traffic management. The Safety Regulation Group can be contacted at:

Safety Regulation Group Civil Aviation Authority Aviation House Gatwick Airport South West Sussex RH6 0YR Tel.: +44 (0) 1293 567171

For airworthiness issues, enquiries should be directed to the CAA’s Flight Operations and Airworthiness team. Companies also must be aware of a European Commission requirement, implemented by EASA, that all design organizations must be certified under their Design Organization Approval (DOA) rules. Approvals of minor and major aircraft modifications are directly affected by this process, and more detailed advice for U.S. firms and aircraft owners should be sought through the CAA.

For manufacturers of large civil aircraft, and their engines, the aircraft subsidy issue has proven a major source of debate and concern. Despite protracted and continuing U.S.-EU negotiations in this area, Airbus proceeded in 2006 to request further financial launch aid assistance for the A350 from the French government, while in the United Kingdom, the Labour Government has publicly indicated its willingness to render aid in support of UK-based component manufacture for the development of this aircraft.

With regard to defense aerospace, in addition to U.S. export licensing requirements, such as ITAR and EAR, companies should also be aware of the UK licensing regime, overseen by the Department of Business, Environment and Regulatory Reform (BERR) and enforced by HM Revenue and Customs (HMRC). Import regulations are harmonized with those of the EU, and relate specifically to firearms, nuclear materials, and antipersonnel landmines (contact the Import Licensing Branch for further information). This UK export licensing policy, particularly the Export Control Act of 2002, is of significant importance for most U.S. defense companies. This places controls not only on the export of goods, but also on the transfer of technology and on trafficking and brokering activity. U.S. firms need to be aware of these provisions as they can cover negotiations with any party from a third-country held in the UK, including discussions at trade shows. The Export Control Organisation, another department within BERR, offers a comprehensive resource online.

In bidding for work, firms should note that the MoD contracts to the Quality Assurance Requirements of the NATO Allied Quality Assurance Publications (AQAP) 2000 series. As a consequence, Invitations to Tender often (but not always) include a requirement for companies to have in place a certificated management system – that is, ISO 9001:2000, obtained from a third-party certification body approved by the UK Accreditation Service (UKAS) or a signatory to the International Accreditation Forum – Multi Lateral Agreement (IAF-MLA). As a further consideration, for larger programs, the United Kingdom has a published Industrial Participation (IP) policy, currently implemented by the Defence Export Services Organisation (DESO). The issue of IP arises where the offshore content of any work exceeds $20 million in value. IP proposals are submitted along with a company’s response to a specific Invitation to Tender (ITT), and are confirmed in a Letter of Agreement (LoA) negotiated with DESO. IP policy is typically applicable only to larger U.S. contractors involved in major projects, for whom the resulting need to engage with a variety of UK companies, often SMEs, represents a good opportunity to demonstrate commitment to the UK market. This can be valuable when competing for subsequent work. Please note that the functions of DESO will be transferred in mid 2008 to a new Defence and Security Group within UK Trade & Investment, an agency of BERR.

Hey netra, i am really glad to see that people like you are sharing such a nice information and helping people. Well, i have also got some important information on General Mills and would like to share it with you so that it may help more and more people.
 

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