Strategic Management Plan for Kellogg's: Analysis of Business Environment and Porter's Five Forces

Strategic management
plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Define business environment, explain macro environmental...........................................1
TASK 2............................................................................................................................................3
P2. Explain the internal micro environment...........................................................................3
TASK 3............................................................................................................................................5
P3. Explain the porters five forces of organization and explain how is influence the company 5
TASK4.............................................................................................................................................7
P4. Porters generic theory.......................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management plan is defined as the firm's procedures of describing their strategy
or direction and formulating decision upon allocating their resources for pursuing this strategy.
Moreover, this is vital for firm as it assists a sense of direction as well as outlines measurable
objectives. It is the tool which is utilised to guide day to day decisions as well as also to evaluate
progress and changing approaches (Ansoff and et. al., 2018). As per the scenario, the chosen
company for this report is Kellogg's, which is an American multinational food production firm.
Its headquarters is in Battle Creek, Michigan. U.S. This report covers application of appropriate
frameworks to analyse impact of macro environment, internal environment and capabilities,
application of porter's five forces model. Apart from this, application of porter's generic theory
for interpreting and devising strategic planning are also discussed in this report.
TASK 1
P1.Define business environment, explain macro environmental
Business environment is defined as the sum or accumulation of overall external as well as
internal factors which impacts the organisational functions as well as how a firm performs
directly or indirectly. Moreover, few of these factors influences the organisations situation and
atmosphere as well. Macro environment is considered as the condition which exits into economy
as a whole instead of into specific region or industry. This involves trends within inflation,
employment, gross domestic products and many others (Cook2015). So, it is vital for Kellogg's
to examine as well as evaluate the macro environmental factors in order to develop appropriate
decisions. It assists them to get knowledge about the several external factors for formulating
effective business strategies for firm. For macro environmental, PESTEL analysis have to
perform through respective company for formulating business strategy are discussed below:
 Political factors: It is considered as government intervenes into economy that involves
instability, labour law trade barriers and many others. The UK operates under the
parliament system. It have a higher taxation level and is stable as well as facilitate an
business opportunity to expand its business. Within respective country, the Kellogg is
quite popular as well as individuals generally eat Kellogg into its breakfast. Therefore,
the government is quite supportive of this.
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 Economic factors: It is considered as the economic performance that consider economic
development, inflation rates, interest rates and many others. The economic position of the
UK is refers as the strong in comparison to another. Due to recession the demands of the
consumers is impacted hugely. In respect of Kellogg, they are not so much impacted as
they are the very popular into breakfast within UK.
 Social factors: It is defined as the factors which involves populations, demographic
features, customs and others, as per which the business is performing its functions. This
includes growth rate, income distribution safety and many more (Crawford2014). As UK
have high social standards and health conscious that leads the business like Kellogg's
which is known for its breakfast meal. In context to Kellogg's, which is so much famous
as well as demand for this is very high as several citizen of UK like to eat cereal into
morning as breakfast which will helpful for enhancing production and profitability.
 Technological factors: This is considered as innovation into technology that impacts the
business activities of sector. This includes technical changes innovation level, automation
and many others. UK is known as the MEDC which is more economically developed
country that do not has great entry for new innovation application. In respect of
Kellogg's, they launched the mobile apps in Flowfinity that aids sales executives to
evaluate the condition of retail outlets. So, accordingly they can able to formulate the
business strategy in effective and efficient manner.
 Environmental factors: This is defined as the factors that are vital due to carbon
footprint, enhancing scarcity of raw material. The UK have performed some development
within environmental factors in order to minimise the pessimistic effects to business.
Kellogg's is facing issues in respect of weather condition. As, due to this their product
items get destroy which will outcomes in lower profitability.
 Legal factors: This considered as factors which involves copyrights, employment, health
and safety laws and many others. It assists in operating enterprises as well as its activities
ethically and legally (David and David, 2013). There are several legislation that have
effected through United Kingdom government in order to perform their business
effectively at market area. This impact the Kellogg's business as Health and safety law of
UK supports respective organisation as it permit them to perform into health industry.
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