Business Strategy of Kellogg company
Analyse the impact and influence of the macro environment on an organization, assess the internal environment and capabilities of an organization, evaluate and apply the outcomes of an analysis using Porter's Five Forces model to a given market sector.
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Added on 2021-02-21
Business Strategy of Kellogg company
Analyse the impact and influence of the macro environment on an organization, assess the internal environment and capabilities of an organization, evaluate and apply the outcomes of an analysis using Porter's Five Forces model to a given market sector.
Added on 2021-02-21
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Business Strategy
Table of ContentsINTRODUCTION................................................................................................................................3LO1 PESTEL analysis of Kellogg company....................................................................................3LO2 SWOT analysis of the Kellogg Company...............................................................................5LO3 The Porters five force framework for Kellogg company........................................................6LO4 Detailed strategic management plan for Kellogg...................................................................8CONCLUSION..................................................................................................................................10REFERENCES...................................................................................................................................11
INTRODUCTIONA set of actions or competitive moves that a business takes to attract consumers, competesuccessfully for achieving organization goals & strengthening of the performances is calledbusiness strategy. Thus, the business strategy is the process how the business must be carried out toachieve the desired goals of the business. In this report we will discuss the impact & influence ofthe macro environment on Kellogg company, the internal environment and capabilities of Kelloggcompany to determine the various strength, weaknesses, opportunities & threats associated with thecompany. Moreover, we will apply the porters five forces model to the Kellogg company toevaluate competitive forces of Kellogg in the market sector (Scholes, 2015),LO1 PESTEL analysis of Kellogg company.Political factorsFor the long-term profitability of the Kellogg company in various countries political factors aredetermined. The product of this company is mainly sold in boxes and transferred to differentpolitical systems & environment. For achieving success in exporting this good in various countriesrequires systematic risk of political environment. Thus, before entering any market Kellogg undergofollowing political analysis of the PESTEL : labelling of the product & various other requirementsof the processing & packaging of the goods, in the sector of consumer goods proper industrialsafety regulations, mandatory benefits to the workers, laws related to wages i.e. minimum wage &overtime, regulations related to pricing of the commodity, favouring trade partners, intellectualproperty protections, for contract enforcement there should be legal framework, governmentengaging interference in processing and packaging of the goods, level of corruption, risk militaryinvasion & political stability of country's economy (Johnson, 2016).Economic factorsFactors such as economic cycle, foreign exchange rate, interest rate, savings rate, inflation rates areall the macro environment factors. These factors determine the average investment & averagerequirement or the demand of the product in the countries' economy. Competitive advantage of thecompany is impacted by the competition norms. For trajecting the growth of the organization theKellogg company uses the countries economic factors i.e. consumer expenditure, growth rate ofgoods industry, industries economy, inflation rate & growth rate of the economy. For analysing theeconomic factors that affects the Kellogg company in expanding to the new market will be : rate ofinterest, rate of inflation, rate of unemployment, discretionary income, economic growth rate of thecountry, business cycle stage which includes prosperity & recovery, productivity in the economy &labour cost, level of education in the economy, workforce skill level, financial market efficiencies,exchange rates & stability of currency of host country, government intervention in free market &
type of economic system in the operation country.Social factorsThe culture of society and the way of doing various cultural practices affects the social factor of anorganization in an environment. The various shared beliefs, rituals & attitudes of the public of thecountry plays a significant role in the marketing of the Kellogg company, to understand how thedesigns of the marketing or the promotional message influence the goods' industry customers. Forexpanding into the new market the Kellogg company undergoes the following check of the socialfactors which affect in the growth of the company's progress : leisure interest of the public of thecountry, attitudes of the population towards environmental consciousness & health etc., the spirit ofentrepreneurs, broader nature of the society, entrepreneurship is encouraged by some countries &while some didn't, standard of education & level of education in the Kellogg company industry,hierarchy, class & power structure of the society & skill level of the countries' population(Thompson, Strickland and Gamble, 2015).Technological factorsDue to the advancement of technology, industries are vastly disrupting all across the board. Toillustrate this issue take in consider the transportation industry. In the last 5 years there is a rapidadvancement in the transportation industry. Transportation industry in modifying at vary fast ratevarying from normal cars to the electronic cars. A company must undergo the technologicalanalysis. It is assumed that slow speed of technological advancement will give enough time to thecompany to cope up with the technology. Thus, technological analysis involves to understand thevarious impacts : technological diffusion rate, consumer goods sector impact on value chain, coststructure impact in processed and packing good industry, impact of technology on product offering& development in Kellogg competitors in recent technologies.Environmental factorsAttitude toward the renewable energy, endangered species, green & ecological products &management of waste in consumer goods section, moreover recycling, regulations related to air &water, environmental pollution laws, change in climate & weather are the various environmentalfactors that the Kellogg company must consider before its expanding in the new environment.Perhaps, different markets have different environmental standards which could impact on theprofitability of industry. Different countries have different laws related to liability & environment.For instance as Kellogg company operates for the food industry then if it intends to expand in theEuropean states than it must consider factors such as health tax breaks to operate in this economy.Thus, before expanding to the new market the company must firmly evaluate the aboveenvironmental standards (Akter and et.al, 2016).Legal factors
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