Kellogg's Report

This report analyzes Kellogg's, a leading breakfast cereal manufacturer, covering its structure, culture, leadership, and management. It includes a SWOT analysis, Maslow's hierarchy of needs, and Porter's five forces model to understand the company's strengths, weaknesses, opportunities, and threats in the market.

Kellogg's

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Aims and objectives...............................................................................................................1
Kellogg's structure, culture, leadership and management role...............................................2
SWOT analysis.......................................................................................................................4
Maslow's model......................................................................................................................5
Porter five force model...........................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
An organization needs to allocate, coordinate and supervise its resources towards
achievement of organizational goal. This study will cover aims and objective of Kellogg's. It is
the largest breakfast cereal-maker brand. Company aims at creating a healthy environment by
production of convenience food and cereals. This organization have been a leading producer of
convenience food like cookies, pastries, snacks, cereals and other food products. Their products
are manufactured in more than 18 countries and sells products in 180 countries all over the
world.
It will identify strength and weakness which are internal to organization and opportunities
and threat which are external. Big companies invest a lot of amounts in marketing their products
and establishing an image of products in customers’ mind. Furthermore, it will discuss about
Kellogg's organizational structure, their culture, role of management and leadership.
Main body
Aims and objectives
Having set mission and aim helps managers to take decisions in planned and correct
manner. Some objectives of company are:
 To communicate people about importance of balanced lifestyle.
 To optimize use of resources and sponsor programs for public.
 Use of packaging which shows ingredients in order to communicate a positive message to
customers.
 To become world's leading producer for cereal and other food products.
 To become number one snack organization and cookie & cracker business in US market.
 To protect and conserve natural resources, set standards for employees.
 To produce products that meet different taste and preference of consumers.
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Kellogg's structure, culture, leadership and management role
Kellogg's is a famous brand of breakfast in UK. They have market share of 42% which
makes them a leader. It is among the biggest grocery selling brand with sales of 12 billion
pounds in global market and 550 million in UK market. Their products are manufactured and
marketed to more than 180 countries. Company produces products such as cereal, waffles,
pastries, snacks.
Kellogg's is leading the market and they have created an environment which is moving in
right direction. There K values shape their culture and behavior which helps them to run their
business in effective way (Baron, Brouwer and Garbayo, 2014). Entity is a leader and have a
strong position in market which help them to enjoy the strongest identity among food sector in
terms of breakfast. Organization has a strong customer relationship, who will not switch to other
competitors even if price hikes. Employees in organization are well integrated.
There top management and lower staff work with strategic planning. They are so well
coordinated which results in effective and efficient communication. The democratic system helps
management to take decisions quickly and correctly (Ha and et.al., 2017). This helps them to
maintain a good relationship with customers. Employees are encouraged to speak openly about
one another strengths and weaknesses. It includes participation of everyone, their right to give
views are also accepted in the organization which further helps to take decisions. Staff are
encouraged to share their views and workers are inspired to make their significant contribution at
the time of decision making.
Organization structure of Kellogg's is geographical-divisional structure. Company
operates on large scale and in different geographical areas, so uses this kind of model. Under this
structure, all the employees are divided in a form of hierarchy who are further bifurcated into
departments operating in various parts of world. Staff is grouped according to their skills,
knowledge and potential to perform a task. They have employed more than 32000 employees.
They have a structural hierarchy where commands flow from higher authorities to lower one.
Kellogg's follows this type of strategy because their foreign sale has a big contribution in their
total sales. They also invest a lot of amounts in research and development. Company is present in
many parts of world, so there is a need of flexibility. Firm produces products according to taste
and preference of customers (Hudis, 2017.). Firm listen to their customers and also conduct
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surveys to know what they prefer and want. They produce products which fits to different
culture.
The company was founded in 1906 by WK Kellogg. Strong commitment of founder
towards health and nutrition is the major reason of success. Some products are so nutritious that
families prefer to consume in their breakfast. They produce products for all ages of people.
Products are designed in such a way which helps them to win customer loyalty. Visions, aims
and objective are effecectively conveyed to employees and motivated them to move forward to
achieve them. Their purpose was nourishment of families and communities by serving them
according to their wants. They empower their staff at workplace as they help firm in gaining
competitive advantage for company. The culture of organization is created in such a way that
employees are motivated for success and growth of business. A company will win only when
their employees will succeed. They empower and motivate employees by awarding for their
performance in form of any incentive or recognition on higher post. Knowledge is shared
throughout the organization (Gowdy and Winston, 2016). Employees enjoy working with such
organizations as they get chance to be employed in cross functional teams and network. This
helps them to easily adopt and share information and all of them works for achievement of
common objective.
Organizational design of entity is in such a way that they can operate all the international
business. Some contingencies that affect structure of Kellogg's like type of strategy that drive
their operations in foreign countries, product diversity and dependency on foreign sales.
Company adapts the culture of country in which they function. Firm have wide variety of
miscellaneous products such as cereal pop, breakfast bars, chips, beverages, pop tarts etc. The
company earns higher revenue mainly by supplying their products or services in international
market which has boosted gross sales percentage.
Kellogg's follows many marketing strategies and various promotional tools. Their 'free in
the box' strategy includes coupons which are attached with marked box. These coupons can be
used to take discounts on company's products. Firm have introduced various campaigns which
includes a game for kids. And the winners of game are awarded with gift hampers. Kellogs have
positioned themselves in different parts of world. It does not provide discount at those places
where they have strong brand image and charge them at original price. And where products are
newly launched then they usually keep prices low (Schröder and et.al., 2014). Their target is
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based on geographical segmentation and focuses on requirements of people present globally.
Company target on mainly kids and families and promote their product with a message begin
your day with healthy and nutritious Kellogg's. Itfocus mainly on people who prefer to stay fit,
shaped and healthy.
SWOT analysis
 Strength- Kellogg's brand has a worldwide presence. It is a brand which produces
products to get rid of hunger and has become major part of breakfast. Their products are
manufactured in 18 countries and are marketed over more than 180 countries. They are
among the largest food companies (Zoe, 2017). In 2012 they have acquired Pringles
potato chips brand which made them more powerful. They have acquired many other
known brands such as Murray, Austin cookies, Bear naked, Natural touch etc. to increase
their global presence and optimize use of resources. They are world's largest cereal maker
and spend a lot on advertising and marketing. Entity is sponsor of US Olympic and
Paralympic teams.
 Weakness- There are many cultures where cereals have low acceptance. When company
entered into markets of India and China they were not accepted. Only by investing in
promotion they could teach people about product and build its image in their mind.
Sometimes brand is being pinpointed that their image is different from what they show.
Their marketing message does not match with what they advertise. Company was
questioned on use of high fructose corn syrup and high sugar content. They are slow in
innovating contents of cereals.
 Opportunities- People are changing their taste and preference. Customers are shifting
towards western culture and they have started adding corn flakes, bread, butter into their
breakfast. Due to changing style, culture and increased workload, people try to find meals
which can easily satisfy hunger and save time. This is a growth opportunity for company.
 Threat- They face an intense competition from industries selling ready-made food, other
food counters and restaurants. Government interventions relating to ingredients is major
hurdle. Their major competitor are Bags, Soulful, Quaker. Due to less entry barrier many
new competitors are entering into market.
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Maslow's model
This is a motivational theory which relates to hierarchy of needs. At Kellogg's people are
motivated towards their work at every level, taking into account each factor of this theory. As
needs get satisfied people get motivated and move to one level up in model. The model starts
from psychological needs and ends at self-actualization needs.
 Physiological needs- It involves the basic needs which are essential for living. At
Kellogg's employees are offered competitive salaries which help them to meet their basic
needs (Geppert, 2018). They also offer flexible benefit program which give choice to
choose what they like. Programs such as childcare, cash alternatives and life insurance
programs are offered to employees. All these schemes help them to save some amount
and motivates them.
 Safety needs- It involves an environment which is free from threats. It aims to provide
safety and security of job with good working conditions. At Kellogg's safety and security
of workers are kept in mind. Company aims to provide healthy working culture which is
free from threats and accidents. They also offer flexible working hours’ pattern to their
employees who want to work part-time, night shifts, work from home and also allow
career breaks.
 Social needs- It includes satisfaction of needs such as love, friendship, belonging, social
groups etc. which are driving force of human nature and are required to perform a job.
Like a strong bond with colleagues who motivates you, communicate and supports you.
At Kellogg's they organize weekly huddles which gives opportunities to employees to
question on any part of business where they face difficulty. This helps to make strong
bonds and enhance belonging. Business have a decentralized system which helps
everyone to take part in decision making process and actively participate in everything.
They are more focused on aims and objective of company (Stobart and et.al., 2015). 'K
values' included in organization are being positive, see best in people and recognize more
customers globally. Organization reward their best employees for their performance in
order to keep them motivated.
 Self-actualization need- They provide challenging task and stimulate responsibilities in
their employees to find out their potential and abilities. Providing an opportunity to take
upon a project as a leader helps them to increase their morale and confidence.
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Porter five force model
Threat of new entrants
The competition has increased and many new companies are entering into this market.
Many new companies have come over with low price, reduced cost to attract customers.
Kellogg's will have to look out this and face these challenges (Diaz-Montano, Campbell, Flinn,
and Throne, 2014). Firm is required to build effective barriers to secure their position in
competitive world. Business entity can invest in making innovative products and services.
Bargaining power of suppliers
The company has centralized manufacturing unit in UK and other units across the globe.
They source raw material from local market and numerous other suppliers. If supplier power is
high, then they can sell raw material at a high price which will decrease revenue of company.
They can improve this by building efficient supply chain management.
Bargaining power of buyer
Often it is seen that buyers are demanding. A buyer always wants to buy the best product
at lower market price. They get attracted by offers and low price. This affects profits of company
in long run. By retaining old customers, company will be able to reduce bargaining power.
Threats of new substitutes
There are many packaged products which are popular in market and can become a strong
substitute of Kellogg's. When any new and similar product enters into market, profits of a firm
gets affected. Kellogg's should be more service oriented than product oriented to attract more
customers.
Rivalry among existing competitors
If there is intense rivalry among existing companies, then this will bring down the prices
and will lower down overall profits of industry (Desai, 2017). Kellogg's face a stiff competition
from many existing firms in national and international market. Switching cost is minimal.
Consumers regard this as profitable as they get premium quality of products at low price.
CONCLUSION
From the above report it is concluded that, company has a democratic system and involve
people in decision making process. Kellogg's has been in market for more than a century. They
have quality and tasty product which help them to secure a safe position in market. It is difficult
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for any new companies to enter into this market and give competition to them. Company focus
on motivating their employees at workplace and reward them for good performance. The life of
organisation is customers who help firm to reach their objective and make profits. They should
increase global presence and target people of different culture by organizing events.
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REFERENCES
Books and Journals
Baron, S.D., Brouwer, C. and Garbayo, A., 2014. A Model for Delivering Branding Value
Through High-Impact Digital Advertising: How High-Impact Digital Media Created
A Stronger Connection to Kellogg's Special K®. Journal of Advertising Research.
54(3). pp.286-291.
Desai, R., 2017. Canada as an Ordinary Imperialist Country: Comments on Paul Kellogg’s
Escape from the Staple Trap: Canadian Political Economy after Left Nationalism.
Socialist Studies/Études Socialistes. 12(1). p.137.
Diaz-Montano, J., Campbell, J.F., Flinn, P.W. and Throne, J.E., 2014. Distribution of three
psocid species (Psocoptera: Liposcelididae) in different moisture gradients in wheat.
Journal of stored products research. 59. pp.172-177.
Geppert, M., 2018. Neighborhood Perception Data and Needs Analysis: Tools for Small
Business Site Selection and Retail Mix in the Discovery District in Downtown
Columbus, Ohio, USA (Doctoral dissertation, The Ohio State University).
Gowdy, J. and Winston, A., 2016. Evaluation of General Mills’ and Kellogg’s GHG Emissions
Targets and Plans: Independent Assessment conducted by Winston Eco-Strategies
for Oxfam’s Behind the Brands Initiative.
Ha, V. and et.al., 2017. Effect of a low glycemic index diet versus a high-cereal fibre diet on
markers of subclinical cardiac injury in healthy individuals with type 2 diabetes
mellitus: An exploratory analysis of a randomized dietary trial. Clinical
biochemistry. 50(18). pp.1104-1109.
Hudis, P., 2017. Rethinking Marx for Today: A Response to Paul Kellogg’s and Ian Angus’s
reviews of Marx’s Concept of the Alternative to Capitalism. Socialist Studies/Études
Socialistes. 12(1). p.181.
Schröder, H. and et.al., 2014. Prevalence of abdominal obesity in Spanish children and
adolescents. Do we need waist circumference measurements in pediatric practice?.
PLoS One. 9(1). p.e87549.
Stobart, R. and et.al., 2015. Developing the use of cover crops on farm through the Kellogg’s
Origins grower programme. Aspects of Applied Biology. (129). pp.27-33.
Online
Zoe E., 2017, “Kellogg SWOT Analysis 2017” [online] Available through:
<https://medium.com/@emma24zoe/kellogg-swot-analysis-2017-8cf3cc6c6800>.
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