Business Strategy: Impact of External and Internal Environment on Kellogg's

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analyse the impact of external environment on an organisation..........................................3
TASK 2............................................................................................................................................5
P2. Identify the internal environment and capability of an organization....................................5
TASK 3............................................................................................................................................7
P3. Application of Porter's Five Forces in Kellogg's..................................................................7
TASK 4............................................................................................................................................8
P4. Application of various Concepts and Theories to make Strategic plan for Organisation.....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is a high level plan which helps in achieving the business objectives,
improves the financial growth and strengthen the competitive position. It is an important function
of an organisation which helps in identifying the different activities and actions of an
organisation (Peng, 2017). Business strategies are the key element which helps in analysing the
actual position of company and also helpful in conducting the market research which shows the
strengths and weaknesses of business environment and these factors influences the growth and
success of company. This report is in the context of Kellogg's which is an American
multinational food company headquartered in Michigan, U.S. It has four divisions which covers
the North America, South & Central America, Asia Pacific and Europe. The supply chain
management of Kellogg's covers various aspects of production, manufacturing and finance which
provide substantial economies of scale. This report is going to focus on the external and internal
analysis of the business environment which influences the company in its operational activities.
Moreover, competitive forces are analysed in order to identify the various factors and for the
implementation of plans and theories porter's generic model is implemented.
TASK 1
P1. Analyse the impact of external environment on an organisation
PESTLE analysis is a framework which is used to determine the external factors for
company. It is an important aspect which contrive the effective and efficient competition of firm
which helps in gaining the sustainability and profitability. It helps in providing the valuable
vision in which Kellogg's operates and face various challenges. Company conduct this before
launching its new product or entering into new market. Kellogg's use this framework to analyse
the various barriers and issues in the market.
Political: This factor influences the profitability and various chances of company which
is important for the survival of company. To achieve the success in frequently changing business
environment company need to improve its Packaged Goods in order to diversify the risk
involved in the political environment (Leonidou and et. al., 2017). There are various factors
which influences Kellogg's before entering into new market such as the political stability in its
packaging, corruption level in the consumer sector, trade regulations which are related to the