Impact of Macro Environment on Kellogg's Business Strategy

This report analyzes the impact of macro environment on Kellogg's business strategy and evaluates the internal environment and capabilities of the organization. It also discusses Porter's five forces model and strategies to improve competitive edge. Additionally, it explores various theories, concepts, and models for strategic planning.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
P1) The impact and the influence of the macro environment ....................................................4
M1) Analyze the macro environment.........................................................................................5
LO2..................................................................................................................................................5
P2) Internal environment and capabilities ..................................................................................5
M2) evaluate the internal environment of the organization........................................................7
LO3..................................................................................................................................................7
P3) Porters five forces model and evaluate the competitive forces............................................7
M3) Strategies which would improve the competitive edge.......................................................8
LO4..................................................................................................................................................8
P4) Range of theories concepts and models and also devise the strategic planning for
company......................................................................................................................................8
M4) strategic management plan with the tangible and tactical strategic priorities and
objectives.....................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Kellogg is an American organization which is providing the products to the customer. It is
dealing with the products like the corn flakes which can be used by the customers for breakfast.
Kellogg is dealing in various global countries which include the North America and Europe as
well. The company is also focusing on improving the brand image of the company and also
investing in fulfilling the needs of the employees, and they would give the efficient services..
The report is focusing on impact and the influence of the macro environment on the business.
Organization internal are also discussed in the report. Porters five forces is implemented and
analyzed as well. Strategic plans are evaluated and manipulated accordingly.
LO1
P1) The impact and the influence of the macro environment
Kellogg need to do the pestle analysis so that it would evaluate the impact of the macro
environment on the business.
Political factors
Elections are having the impact on the business and the business is affected by the
political environment of the country. The political environment include the politics which is
running in the environment and also the work of the employees is affected by the environment.
Through these elections the company business is affected due to politics. Kellogg was also
working with the other companies for the event of the elections and the company also had the
affected the customers loyalty (Rothaermel 2017).
Economic factors
Due to strong GDP growth in the market the performance of the company is affected but
in the positive way GDP growth is increasing the sales of the company and the currency
movements in the economy is also affecting the business environment and company environment
as well.
Social factors
Growing of the private labels which are affecting the business environment. Customers
are also accepting the private companies products and due to that the competition is being rising
in the market. Society and the culture and the standard of the living is affecting the sales of the
company.
Technological factors

Technology is increasing day by day and the mobile apps are also used for the selling the
products in the market. Sales is increasing because of the customers which would order the
products online and the company would also invest in the technology of improvising the
products. Mobiles are also providing the latest updates and the company would provide the
report which would analyze the sales of the company. Profit margins are quite low in the
providing the packed food to the customer so the company. Company is also using the sap
services and the other software which will reduce the cost of the company on the trade.
Legal factors
company would be facing the strong rules and the regulations which are formed by the
government for suppliers and the customers. The laws regarding the products must be used at the
time of the advertisements and descriptions as well. The company must look after that the rules
and regulations which must be followed by the employees and the company as well.
Environmental factors
The company is dealing in the breakfast products and providing the products in the form
of the packed food. The ingredients which are used in preparing the products must be pure and of
good quality. Deforestation is affecting the environment and the ingredients which are used in
preparing the products must be environment friendly. The technology used in the company while
preparing the food must be environment friendly as well.
The pestle analysis of the company is must because the company must be known about
the factors which are affecting the performance of the company in the market and also the brand
of the company is affected due to that these factors.
M1) Analyze the macro environment
Macro environment is affecting the performance of the company and the employees of
the company. The company need to use the latest technology and use the positive impacts of the
macro environment. The company is following the initiative of feeding the hunger than the
company must look after fulfilling the environment. Macro environment consist of the political,
economic, environmental, and technological factors as well. These factors are affecting the
company in the market and also the brand image of the company is decreasing effectively.
Company has to deal with the packing and the dealing of the products. So the company must
look after the factors which would affect the sales of the product in the negative way.

LO2
P2) Internal environment and capabilities
Internal environment consist of the strength and the weaknesses of the company and also
include the opportunities and threats of the company. Internal environment is affecting the
company and the productivity of the customers.
Strengths
Kellogg has concentrated and has made the strong position of the company in front of the
customers. Employees of the company have focused on the product quality and also provide the
customers with the nutrition in the product. Effective marketing campaigns are attracting the
customer towards the company. The company has entered the global market and also the
company is focusing on the global manufacturing of the products. The company is improving the
marketing strategies and also Improvising the products as well. In order to improve the
performance of the employees the company is supporting the employees and building the strong
relations of the employees (Steiss, 2019).
Weaknesses
company is segregating the product and the company has build the image of the breakfast
cereal. Some products of the company are only sold in the North America and the those products
are not consumed by the customers of the other countries. Kellogg is having the limited research
and development centers through the which the company would not test the products
accordingly. Company need to increase the research and the development centers which would
also develop the employees and satisfy the customers. Company need to implement the new
strategies which would also increase the sales and the productivity as well (Hajizadeh, 2019).
opportunities
company must grab the opportunities and also the company need to focus on the business
venture and emerging of the products in the markets. The company is also expanding the
products and improvising the products accordingly. Market growth is also affecting the company
sales and the customers would easily accept the products. Kellogg is focusing on the business
models which include the e business models, so that it would increase the productivity. Kellogg
is investing in the market through the way of the business ventures (Sprunger, and et.al., 2018).
Threats

company must take effective measures for controlling the threat of the company. Increase
in the competition in the market is increasing accordingly and also the government has levied the
rules and the regulations on the company. Customers are changing their choices now and then so
the customers changing perception is affecting the sales of the company. Due to the increase in
the competition and the customers are changing their perspective and also customers are
attracted towards the other companies. In order to increase the sales the company need to focus
on the objectives and the needs of the customers. Processed foods and the packed foods are
changing the customers decisions due to the quality and the freshness of the products (Friedrich,
2015).
M2) evaluate the internal environment of the organization
internal environment of the country is affecting the business environment and the
company need to focus on the strengths and grab the opportunities which are helpful for the
company. The company also need to concentrate in the weakness and also be prepared for the
threats which would affect the company. Kellogg's breakfast contain of the high sugar and the
syrups which are affecting the environment. Rise of the competition in the market is affecting the
company and the performance of the company. Market growth is affecting the sales of the
company and the company need to focus on the marketing strategies which would increase the
sales of the company (Ward, and Zsolnay 2017).
LO3
P3) Porters five forces model and evaluate the competitive forces
Porters five forces model would analyze the industry and the company strategies which
would focus on the market as well.
Threats of new entrants
New entrants of the market is concentrating on the products which are processed a
packed accordingly. Kellogg would lower the prices and reduce the cost of the products which
would attract the customers towards the company. Company would make the effective measures
for fighting the competition in the market. Organization would innovate the products and provide
the best products to the customers. Company would also build the economies that it would also
lower the cost of the product on per unit. Kellogg can spend the money on the research and the
development of the product.
bargaining power of the suppliers

Company need to make the products, so the company need to buy the raw material form
the suppliers which are supplying the raw products to the company. Through these raw material
the products are made. If, the suppliers are increasing the price of the raw material and the
company need to would not increase the price of the products immediately. So it would affect the
profits of the company. Company would efficiently tackle with the problems of the supplier by
forming the strong chain management. It would have the effect on the product designs so the
prices of the raw material could be shifted form one another (Kravchenko, and et.al., 2018).
bargaining power of the buyers
customers are always demanding more form the company and also at the low prices
which would affect the company and the sales as well. Company would overcome these
problems by giving the discounts and the offers to the customers. Kellogg would also build the
strong base of the customers. Company would innovate the new products which would also not
increase the competition in the market (Eskerod. and Jepsen, 2016). Customers in the market are
provided with the best quality of the products as well. New products of the company would also
attract the customers and the customers are also waiting for the offers and discounts on the
products.
Threats of substitute the products and the services
New products and the services introduced in the market also have the threats of the
substitute products which are sold in the market on the name of the company. These factors are
affecting the sales of the company and also the goodwill of the company is affected in case of the
customers are not satisfied with the products quality. The substitute products which are sold in
the market are also sold at the low cost which is attracting the customers as well. The company
must look after the organizations which are providing these type of the products.
Rivalry among the existing competitors
Competition is increasing in the market which would also increase the problems for the
customers. Due to the rivalry among the companies the customers are provided with the best
products at the low cost. It is affecting the performance of the company in the market. Company
must collaborate with the competitors for the large market and not concentrate on the small
market.

M3) Strategies which would improve the competitive edge
Kellogg must concentrate solving the problems of the customers and also got the price of
the product according to the customers so that they would buy the products. Company would try
to bring innovation in the existing products so that it would attract the customers. Organization
must look after improving the customer services (Edwards, and et.al., 2019). Company must also
form it own strategies which would increase the productivity and the profits of the company.
LO4
P4) Range of theories concepts and models and also devise the strategic planning for company.
Company is concentrating on improving the quality of the products by using the
strategies which would attract the customers as well. Strategic management plan include the
theories and the concepts which would increase the strategies.
Strategic management plan
The plan includes the vision and mission statements, swot and pestle analysis as well.
Vision statement include the vision of the company which is to provide the nutritious food to the
people which are consuming the product, mission statement is provided the satisfaction to the
stake holders of the company.
Pestle analysis consist of the factors which are affecting the sales of the company and the
productivity as well. Technological factors and environmental factors are affecting the sales of
the company. Election in the country are affecting the business of the company and the
employees of the company as well.
Swot analysis is the analysis of the company which would include the strengths and the
weakness of the company. The analysis also include the opportunities and the threats which are
affecting the sales of the company. Kellogg has to focus on the strengths and grab the
opportunities like the innovative new products and also improvising the products as well.
Company need to focus on the objectives and the decision which would affect the company
performance in the market (Cook, 2015.).
Company is also concentrating on improving the labeling of the products and also
company is sponsoring the swimming programs which would also include the promotion of the
products and the company as well. Kellogg is arranging the programs for promoting the exercise
and also company is promoting in community as well. Company need to ficus in the strategy ans
well. So, the effective communication between the employees would improve the performance of

the employees. Effective communication of the customers with the employees regarding the
complaints of the customers. These would improve the view of the customers towards the
company.
In order to improve the quality of the products and attract the customers the company is
using the strategies which are attracting the customers. The company need to work efficiently
and also improve the customers taught regarding the company (Chen, and et.al., 2015). So the
company is establishing the strong relation of the customers with the employees so that the
problem of the customers would be solved effectively and the company would effectively work
according to the customers need. Communication between the employees is also necessary
because the employees are communication the problems of the customers to the respective
department and the department would try to solve these problems.
Kellogg is investing in the companies and the company would be able to achieve the
profits and that also increase the market for selling the products as well. The company need to
work efficiently and also work according to the company. The company is also engaged in
community work and providing the help to the customers which would include the social
services and the charity done by the company. Company is also sponsoring the programs for
promoting the products and the services. Kellogg need to work efficiently and improve the
performance of the company regarding the customers and it would also improve the productivity
of the company.
M4) strategic management plan with the tangible and tactical strategic priorities and objectives
Company is using the strategies which would improve the image of the company in front
of the customers as well (Bakir, 2015). Kellogg is improving the food labeling and the company
is focusing on the guideline daily amounts which include the daily level nutrients required in the
food. Company is also sponsoring the swimming programs which are used as the promotion
from the company. It is promotion the exercises and also focusing on the communication
strategies which would improve the communication in the company. These strategies would
improve the performance of the employees which are working in the company.
CONCLUSION
The report is stating about the business strategies used by the Kellogg for improving the
performance of the company. The company need to work according to the customers and the
employees. Kellogg has done the pestle and the swot analysis and also the factors which are

affecting the performance of the company are evaluated as well. The company need to work
efficiently and also the company is using the strategies to attract the customers. Due to increase
in the competition in the market the company need to work efficiently and perform the work
accordingly. Company is using the strategy to improve the brand image company to the
customers as well. The company is also focusing on building the strong relation between the
employees and the customers and also between the employee and the employees which would
improve the performance of the employee working for the company. The report consist of the
factors and the services which would improve the performance of the company.
REFERENCES
Books and journals
Bakir, B., 2015. Kellogg's" To Go" Breakfast-Shake at the Danish Market.
Chen, and et.al., 2015. Oxygen-deficient BaTiO3− x perovskite as an efficient bifunctional
oxygen electrocatalyst. Nano Energy, 13, pp.423-432.
Cook, N.D., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Edwards, and et.al., 2019. A single-enzyme system for starch digestibility screening and its
relevance to understanding and predicting the glycaemic index of food products. Food
& function. 10(8). pp.4751-4760.
Eskerod, P. and Jepsen, A.L., 2016. Project stakeholder management. Routledge.
Friedrich, L.M., 2015. Improving Patient Care Outcomes to Reduce Recurrent Admissions of
Patients with Chronic Obstructive Pulmonary Disease.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Kravchenko, and et.al., 2018. Water absorption capacity of soil-incorporated plant leaves can
affect N2O emissions and soil inorganic N concentrations. Soil Biology and
Biochemistry. 121. pp.113-119.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Sprunger, and et.al., 2018. Perennial grain on a Midwest Alfisol shows no sign of early soil
carbon gain. Renewable Agriculture and Food Systems. 33(4). pp.360-372.
Steiss, A.W., 2019. Strategic management for public and nonprofit organizations. Routledge.

Ward, J.L. and Zsolnay, C.A., 2017. Keddeg Company (C): March–December 2008: From Go-
Go Succession to Non-Family Sale. Kellogg School of Management Cases. pp.1-3.