Business Strategy: Environmental Analysis and Strategic Growth Management Plan of Kellogg's

BUSINESS STRATEGY

CONTENTS
INTRODUCTION.................................................................................................................................1
TASK – 1 (EXTERNAL ANALYSIS)..................................................................................................1
PESTLE analysis of Kellogg’s..........................................................................................................1
Conclusion.........................................................................................................................................2
TASK – 2 (INTERNAL ANALYSIS)...................................................................................................2
SWOT analysis..................................................................................................................................2
Resource based analysis....................................................................................................................3
Conclusion.........................................................................................................................................3
TASK – 3 (COMPETITIVE FORCES & STRATEGIC DIRECTION)................................................4
Porter’s five force analysis................................................................................................................4
TASK – 4 (STRATEGIC MANAGEMENT PLAN).............................................................................5
Porter’s generic strategies..................................................................................................................5
Strategic management plan................................................................................................................5
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Speaking in regards with the business methodology, it alludes to planning as well as
execution of procedure to accomplish the objectives and goals. The prominent association are
creating and executing methodologies by examining the market patterns and exercises, as it
have noteworthy effect on the business system and on its development (Aaker and
McLoughlin, 2010). The current research study focuses on producing an environmental
analysis and strategic growth management plan on the basis of the renowned internal and
external analytical tools of Kellogg’s, an American owned organisation. As a corporate
strategy manager of the company the main task is to evaluate the impact and the influence of
macro-environment on the strategies of Kellogg’s. Further, the internal analysis and
capabilities of the firm will also be assessed. Strategic management plan will be prepared in
the final parts of the report.
TASK – 1 (EXTERNAL ANALYSIS)
PESTLE analysis of Kellogg’s
Political
Focusing in relation with the political environment of United Kingdom, it
is quite stable. Laws and regulations imposed by the government are
quite strict and even private organizations are more encouraged. In UK,
Kellogg’s is quite well-known brand and thus, the government is quite
supportive to it. However, the politicized marketplace at the time election
severely impacts the business (Zoe, 2017).
Economical
The employment rate of UK is quite high i.e. 9 percent. There is a high
level of competition amid the breakfast as well as snack brands. Since,
Kellogg is famous as breakfast cereal in UK, its demand never get
affected during recession as well. But, the volatile movements of the
currency rates impacts the demand of the product.
Social
In IUK, people are becoming more conscious in regards with their health
and thus, Kellogg’s is their preferred choice. Further, there is growing
acceptance of private labels by the customers in the nation.
Technological
In regards with the technological aspects, UK is quite high in this sense
as huge investment is made by the government in the areas of research
and development and the same is being performed by Kellogg.
Additionally, mobile applications are being used widely in the market for
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sales collaboration (Hendersonand Venkatraman, 2009).
Legal
In relation with the legal aspects, UK government is quite supportive of
Kellogg’s. Further, there is strong compliance standards for the suppliers.
There is a lawsuits for any sort of misleading description of the product
as well as advertisements (Taylor, 2015).
Environmental
Concerning about the current situation of the environment, it is important
for the company to develop ecological & recyclable packaging for
avoiding any waste. The company is also being accused for utilizing
genetically engineered ingredients.
Conclusion
From the above analysis of the macro-environmental factors of Kellogg’s, it can be
said that all these factors significantly have one or the other impacts on the strategic
management decisions of the firm. Consequently, the future methodology for Kellogg ought
to be that they should focus on carrying more assortment and little modification in contrast to
their items in light of the fact that the client has a fluctuating decision regarding this. Next
day, there will be some other choice in the field of grain and individuals will shift towards
that particular product. Cereals have the degree to improve a ton and there can be parcel
numerous preferences which can be created in this field (Trott, 2010). Additionally, the
organization should forcefully advance and partner with more well-being as well as care
related exercises so individuals remember it as a healthy nourishment.
TASK – 2 (INTERNAL ANALYSIS)
SWOT analysis
Strength
 Kellogg’s has strong positioning
between the customers
 Re-engineered marketing strategy
 Strong level of commitment towards
nutrition
 Supply chain management is very
efficient (Newsroom Kellogg
Company, 2014)
 Presence in the multinational markets
Weakness
 There is lack of segregation in the
portfolio of product
 Limited research and development
centres to some particular areas only
 Most of the products in the portfolio of
Kellogg are being sold in the markets
of North America
Opportunities Threats
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