Impact of Macro Environment on Kellogg's Business Strategy

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.