P 2. Analyse the internal environment and capabilities of a given organisation

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
LO 1.................................................................................................................................................3
P 1. Applying appropriate frameworks analyse the impact and influence of the macro environ
ment on a given organisation and its strategies...........................................................................3
LO 2.................................................................................................................................................5
P 2. Analyse the internal environment and capabilities of a given organisation using appropria
te frameworks..............................................................................................................................5
LO3..................................................................................................................................................7
P 3 Apply Porter’s Five forces model.........................................................................................7
LO 4.................................................................................................................................................9
P 4 Range of theories, concepts and models...............................................................................9
CONCLUSION..............................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Business strategy is a set of actions and decisions which have to be taken to achieve a par
ticular objective or aim in the business. For a long run of the organisation this strategy has to be
made so that they have a destination and a direction to achieve. There has to be a study of the ext
ernal and internal factors which are supposed to be systematically managed otherwise the organis
ation can not work efficiently.
Kellogg’s is a multinational organisation which is producing healthy and safe food for its
customers. The headquarter of this company is in United States, Michigan. The production of co
mpany is convenience food and cereals. This company has several well-known products and bran
d under it which are Pringles, Eggo, Corn Flakes, Cheez-It and Frosted Flakes. The mission of th
is company is to provide its customers with nourishing food so that it can lead to the customers t
hrive and flourishment.
Main Body
LO 1
P 1. Applying appropriate frameworks analyse the impact and influence of the macro environme
nt on a given organisation and its strategies.
Pestal analysis is political, economic, social, technological, environmental and legal facto
rs. For any company’s long run there has to be a detail study of these factors so that they can gro
w faster and can make profit for a long run without any other disturbances. The company must k
now these factors so that they can make the company work more efficiently and this way they ca
n take decisions for the company. These factors are the analysis of the external factors of the com
pany. With these factors the company can know the reasons for their growth or decline in the ma
rket.
Political Factor-
There is stability in the company’s political factor and the company is trying to keep it th
at way. But the change in the political leaders the company, Kellogg’s will not be able to maximi
ze their profit level because of the taxation which is increasing recently. The countries which hav

e no IP protection policies will not be invest in the company which means that will be another los
s for the organisation. The political factor influences the company very much and because of that
factor the company has to give the employees the wages they deserve and can not minimize on th
at factor. The level of corruption is very high because where ever the political party is involved t
here is going to be corruption.
Economic Factor-
There is a high level of unemployment in the country where this product is produced whi
ch means people will want to work with lower wages and that means that the company will be ab
le to make profit in the market. There will be a lack of experience in the employees which the co
mpany has to take care of otherwise the company can face a lot of issues in the future. The raw
material they get in the company can also become a lot of problem for the organisation which the
company has to take care of. The employees they hire have a good education level then that will
also get the wage higher for the employees and their wants will also increase. The packaging the
y use is of a good quality and that is effecting the company’s economy.
Social Factor-
The factors of gender, race, sex, culture, religion, etc does not come into consideration an
d all the employees of the company are treated equally and fairly. The attitude they have towards
the social or society is very good and well maintained so that they can get a higher selling rate an
d can make greater profits in the market
(Ghemawat 2016). Kellogg’s tries to hire people who have good qualification and knowledge ab
out the organisation so that they can continue remaining stable in the market. The customers are
accepting the label and the company’s objective socially so that they can gain the profit in the ma
rket and the organisation remains to grow over all.
Technological Factor-
There has been a decrease in the efficiency and productivity of the organisation because t
he competitors have developed themselves in the field of technology. The company has now real
ised there drawbacks and are working towards improvisation for achieving their goals and object

ives
(Strategy,2017). The technology is helping the company to grow for a longer stability in the mar
ket. The company has started putting discounts and sales on their products which is being promot
ed by the means of technology.
Legal Factor-
The company is very particular about the discrimination law and makes sure that they are
being fair to all the customers and employees
(Teh and Corbitt, 2015). All the employees need protection and safety when they are working in
any organisation and Kellogg’s makes sure that the employees get what they want otherwise ther
e will be an overturn of employees in the company. Technology makes the work easier and faster
for the organisation which the company is taking full advantage of so that they can grow.
Environmental Factor-
The climate or the weather of a place can affect any organisation or company. The transp
ortation of the products depends on the weather and if the weather does not support the transport
ation then that will become a great problem for them to sell their products. The company is maki
ng sure that they are not causing any problem for the environment in any way possible.
LO 2
P 2. Analyse the internal environment and capabilities of a given organisation using appropriate f
rameworks.
Swot analysis is the detail study of the external and internal factors of a company or an or
ganisation so that they can work efficiently and make profits. This can help them with decision
making and can also help them for a long run so that they can remain stable. Swot stands for Stre
ngth, weakness, opportunity and threat. SWOT analysis can only be done when all the departmen
ts are working together in the organisation be it finance, marketing, operations, strategic or mana
gement information system. This is the detail study of the company Kellogg’s.
Strength-

● The products Kellogg’s has under it are highly recommended to go for the market strategic
because the products which are being served by the company are very healthy.
● Kellogg’s has a good history with innovation of products and there portfolio is very strong
in this field.
● There is a high turnover of employees because there is a lack of employment in the country
and the people want this job. The company is spending a lot on the training of the employ
ees so that they can give a standard service to the customers.
● Kellogg’s has invested a lot in building up their portfolio and that has made the company w
hat it is today. Kellogg’s has built up a good portfolio of them and now if they want to sta
rt any new product category then they easily can.
● Kellogg’s can afford to invest in launching and making new products because there is a str
ong flow of cash always.
● Over so many years Kellogg’s has built a strong network for itself and the connections they
have all around the world no one will have that many networks.
Weakness-
● Kellogg’s is not being able to grow because whenever it invests in any other product becau
se they face a challenge by shifting into another product with the same culture.
● The products are not easily available and that can turn out to be great loss for the company.
The competitors can easily take over the business and market of Kellogg’s.
● The company needs to spend a lot on their technology because the company is not being ab
le to produce according to the customer’s needs and not even they are able to invent some
thing of their own (Apenko, 2017).
● The employees is weakness for the company because they are being able to serve the custo
mers with what they need and are not being able to reach the company’s maximization to
sell their product.
● The segment that this company is following is for today’s world and is not applicable for th
e future and this is limiting the company to grow.
Opportunity-

● The products which are somewhat similar to Kellogg’s company can be invested upon beca
use the cash flow of the money is very good in this organisation
(Dranove and et.al., 2016). The company can also invest in the technologies of the industr
y because that can help the company to innovate new products.
● The new taxation policies are always an importance for the company because they will be
now exporting more to make more profit of the company Kellogg’s.
● The number of customers has increased because there is a sum of amount which has been i
nvested in the advertisement on online platforms so that the company can get in more loy
al customers to their brands.
● Kellogg’s is one of those few companies which do not harm the environment in the product
ion of this brands product. This gives this company another advantage to make the compa
ny even more loyal to the world and let the company add more points to its strong portfol
io.
Threats-
● There is a steady growth in the companies and the company is not being able to make profi
ts because the skills which are supposed to be present in the labor is not there because of t
he lack of qualification and employment. The company takes such people because they ca
n pay less to the labor and they can gain a profit from that (Baraibar‐
Diez, Odriozola and Fernández Sánchez, 2017).
● It has been seen that over the last 2 years the competition in this market is growing up beca
use grow in the company’s profitability is stable and the other companies are taking full a
dvantage of this situation.
● The other companies are coming out with innovative ideas around this field and Kellogg’s
is not inventing anything special in the market which can make Kellogg’s lose on a lot of
customers. Even the Stable customers will prefer to leave after a point of time.
LO3
P 3 Apply Porter’s Five forces model.
Porter’s five forces are the told to find out the lever under profitability of the company w
hich analysis the strategy management of the company. The manager of the company, Kellogg’s

can use the model to find out ways to achieve more profitability of the company and how they sh
ould take measure to not let the competitors come slower to them. Porter five forces model inclu
des threat from substitute products, bargaining power of supplier, threat of new entrants, bargaini
ng power of buyers and rivalry among the existing player.
Substitute products-
There is a lack of employees in America where this company is well established
(Balon and et.al., 2019). The company is investing a lot on the skills training of the employees th
at the company is only being able to make a stable growth in the market in the last 2 years theref
ore now there are other companies which are coming out with substitute products which are very
similar to Kellogg’s company. Kellogg’s is in this market from a very long time therefore the oth
er companies are still not in the same category as Kellogg’s is and they will take a lot of time to r
each where Kellogg’s has in today’s world.
Bargaining power of supplier
Kellogg’s never have just one supplier who is supplying them raw material and has many
suppliers for them
(Soltanizadeh and et.al., 2016). Kellogg’s never depends on anyone for raw material and whenev
er the suppliers tend to ask for more money the company refuses to take the raw material. The co
mpany does not depend on a supplier who is dependent from this company only to survive becau
se they tend to ask for more sometimes.
Threat of new entrants
The company is not being able to grow because they did not have a skilled employees wo
rking for them so they had a stable growth in the market. The company is trying to make as much
as profit as possible by getting in unskilled employee and paying them less wages. The innovatio
n in the company is not present because the company has no skilled employees
(Buckley, Burton and Mirza, 2016). The company is now putting in money for innovation and pr
oduction of new products but the competitors have already got better ideas and Kellogg’s is not b

eing able to grow because of that fact but Kellogg’s is now working over it and soon will be back
to its original.
Bargaining power of buyers
The customers always want a discount on everything possible and Kellogg’s is already gi
ving its products for such a low rate that the company will not have to put in a lot of discounts an
d offer on their products
(Zakaria, Hashim and Ahmad, 2016). But even after this the company does put some discounts a
nd offers to attract more customers and this is a way Kellogg’s company is making profit. Since
Kellogg’s is slow with innovations and there innovations are not really appreciated by the custo
mers therefore they need to give discounts and offer to keep the customers happy and satisfied.
Rivalry among the existing player
Kellogg’s has not have had any problems with the competition in the market because the
company has so many years of experience in the market that no other company wants to go again
st this company (Bentley-
Goode, Omer and Twedt, 2017). The company needs to come up with different and innovated id
eas otherwise sometime else will overtake Kellogg’s company. Kellogg’s must start having a sca
le of work which needs to complete and tasks they need to complete.
LO 4
P 4 Range of theories, concepts and models.
Mission
Kellogg’s is a brand that matters through providing its customers food and the visions of
Kellogg’s is to delight and enrich the customers. Thrive and flourish the customers who consume
Kellogg’s is the purpose of this company. The history of Kellogg’s drives the company to look f
orward to tomorrow.
Vision-

Delight and enrich this entire world with the food products this company is selling and th
e brands that matter as well.
Core-
The core values of Kellogg’s company are passion, results, integrity, accountability, simplicity a
nd humility.
Objectives-
● To increase sales of the new product Kellogg’s by 10% till the end of year 2020.
● To increase the market, share by 30% till the end of year 2022.
● To enhance consumer experience by 10% in upcoming 6 months.
Ansoff Matrix-
This matrix is a framework which will help the senior managers, market devise strategies
and executives for strategic planning tools
(Marx, 2015). There are four important sub divisions which are diversification, market developm
ent, product development and market penetration.
Diversification-
There are many new products which are brought in by Kellogg’s but none of them were a
ble to survive in the market for long. The company was not being able to promote the new produ
ct so well and the employees they have who are not skilled are not that efficient with their work
(Pisano, 2015). The company is focused on the old products which they still have and are not inv
esting so much in the innovation team.
Market development-
The market of Kellogg’s is already too well established and this is so because the compan
y has been in this market from a long time. The motive and aim of this company is very good wh
ich is being supported by the consumers. The media has a lot of questions for the company and t

hose need to be answered otherwise that can create bigger problems for the company to develop i
n the market further and will be difficult to manage their stable portfolio.
Product development
The company has to work on it spreading the innovation team of the products they are co
ming up with because those products do not last in the market for a very long time. The company
will have to invest a lot in there innovation team otherwise the competitors will take over there pl
ace in the market
(Akter and et.al., 2016). Just because Kellogg’s has been in this industry from a long time theref
ore the company is not facing any issues related to competitors and their networks in the market
are very strong and therefore the company is where it is in today’s world.
Market penetration
No other competitor of Kellogg’s would know better to penetrate into the market like Kel
logg’s does because they have experience which the other companies do not have. The company
should try their best to improve themselves otherwise someday someone else will take over there
place and the company will be in great lose.
Marketing Tactics
Place-
The company is well established in America and because of the law policies the company
is not having any effect in the production of the product. The raw material is easily available and
the products are then transported to different countries which are easily done by the company wit
hout any much effort (Scholes, 2015).
Price-
The price of Kellogg’s is not so high that the customers can not afford it. The prices are k
ept such so that anyone can afford it and Kellogg’s will be able to achieve its goals and aims fast
er this way. The wages they pay to the employee is also not much so they can not increase the pri

ces of the product. Even a middle class can see dreams of having a healthy food diet for their fam
ily.
Product-
The quality of the product is very good because the main aim of this company is to provi
de its consumers with good and healthy food therefore they make sure that the product they are s
erving to the customers is very good. The raw material quality is never compromised upon and th
e products they service have the ingredients and all the details about the product on the package.
Kellogg’s was the first one do take this initiative to share their detail with everyone.
Promotion-
The company has promoted themselves through campaigns the most and the campaigns h
ave really been a success for them. The company has really struggled to promote their product in
the early days and now they are at this level in the market because they promoted themselves in t
he right way. The company made the people aware of the product and the nutrition’s and the heal
thy diet idea they had come up with.
CONCLUSION
This report had brief information about the different factors which would affect the growt
h of Kellogg’s, the factors on which the company has no control on it are external factors and the
factors which are within the organization are internal factors. These helped the organization to
analyze the market factors to develop the effective strategies so that the organization can increase
their productivity with the opportunities the company had taken. The analyses of external
environment are also essential as it allow Kellogg’s to examine the threats and opportunities
which the company could gave. Political, economical, social, technological, environmental, legal
factors are the external forces which the efficient analyst to evaluate to design the better strategy
of the company. Kellogg’s also had faced many internal problems which the company had
resolved with internal analysis of evaluating the strengths, weaknesses, opportunities and threats.
The company had also analyses the importance of training and developing their employees as the
employees are the lifeline of the organization and weaker the workforce of the organization more
inefficient will be the organizational structure. Kellogg’s have analyzed some factors which

would change their market position which the company resolved by proving customer
satisfaction and also increasing the product quality and also by innovating the products by this
the company had made an effective strategy which had solved the threat of new entrants, supplier
bargaining power and buyer bargaining power and competition by the rivalry which is also very
essential to innovate and also increase the effective planning to increase the profits and sales of
the company.

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