Business Strategy Report: Kellogg's - Macro and Internal Analysis

This report provides a comprehensive analysis of Kellogg's business strategy. It begins by examining the impact of the macro environment, including political, economic, social, technological, legal, and environmental factors, on Kellogg's performance. The report then delves into an analysis of Kellogg's internal environment using a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Next, it applies Porter's Five Forces to evaluate the competitive forces within the market sector. Finally, the report outlines strategic planning for the organization, including the application of various strategic concepts and models to improve competitive edge and market position. The report emphasizes the importance of adapting to the macro environment, leveraging internal capabilities, and understanding competitive dynamics to ensure Kellogg's continued success in the food industry. The analysis includes specific strategies for improving the company's competitive position and market share, culminating in a strategic management plan with tangible objectives.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
P1) Impact and influence of the macro environment on the organization..................................4
M1) Analyze the macro environment.........................................................................................5
LO2..................................................................................................................................................5
P2) Analyses the internal environment and capabilities of the organization..............................5
M2) Evaluate the internal environment to access the strengths and the weaknesses of the
organization.................................................................................................................................6
LO3..................................................................................................................................................7
P3) Apply porters five and evaluate the competitive forces to the given market sector.............7
M3) appropriate strategies to improve the competitive edge and market position.....................8
LO4..................................................................................................................................................8
P4) range of the theories concepts and models and also devise the strategic planning for the
organization.................................................................................................................................8
M4) Strategic management plan with the tangible and tactical strategic priorities and
objectives...................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Kellogg is the American owned organization which is dealing in the providing the packed
food to the customers. Company is running the business in North America and Asia and Europe
and middle est as well. The report consist of the impact and the factors which are influencing the
macro environment of the company. It also includes the internal environment and also the
capabilities of the company as well. Report consist of the porters five forces which is doing the
industry analysis and also the report consist of the strategic management plan. The company is
focusing on promoting the products and also the need of the customers is specified and Known to
the company so the products are prepared according to the customers as well.
LO1
P1) Impact and influence of the macro environment on the organization
Macro environment consist of the political, sociological and technological factors which
are affecting the performance of the organization in the market. The Kellogg need to work on the
macro environment factors to improve the performance in the market. The pestle factors are
influencing the macro environment of the organization.
Political factors are influencing the Kellogg which will have the impact on the long term
growth of the organization. Kellogg is selling the packaged goods which is affecting the
customers and the quality of the food as well. Due to the increase in the level of the corruption in
the food sector the organization must look after the factors which will improve the product
quality and the customers reviews as well.
Economic environment of the country is affecting and it is having the impact on the
performance of the product in the market. Labor cost and the productivity of the economy and
also unemployment rates and inflation rates are influencing the decisions of the customers and
the organization as well (Giniuniene, and Jurksiene, 2015).
Social factors include the population and the culture of the country and the attitude like
the health and the environmental factors are having the impact on the organization as well. The
organization is trying to improve the performance of the products in the market and also innovate
the product according to the customers and their culture as well.
Technology is increasing in every sector, the organization would do the technological
analysis and also use the technology on improvising the product. The competitors are using their
latest technologies due to competition in the market the Kellogg have to use these latest

technologies as well which Will help the company to survive in the competition as well.
Technology would also have impact on the product and the performance of the product in the
market.
Legal factors include the rules and the regulation levied by the government on the
organization. These laws include the employment law consumer protection laws and also health
and the safety laws as well. The organization has to look after the quality of the packed goods
which would not affect the health of the customers as well. Packed good have to follow the
different laws and regulation which includes the anti trust laws in processed and packed goods.
The laws consist of the rules for packed goods which would not affect the quality of the products
(Pezzutto, Fazeli, De Felice and Sparber 2016).
Environmental factors are the factors of the environment which are having the impact
on the product. Weather, waste management and also air and water pollution while preparing the
products as well. The Kellogg have entered the market but has to follow the rules which are
made by the government for the environment protection as well. Organization has to look after
the laws made for the environment protection and also try to make the innovative products which
would also attract the customers (Kennedy 2019).
The organization Kellogg product and the sales is affected by the macro environment
factors. These factors are affecting the performance of the organization and also the performance
of the product in the market.
M1) Analyze the macro environment
The pestle analysis is affecting the long term objectives of the organization. Macro
environment of the organization would affect the sales of the company. The political factors and
the economic factors are influencing the strategic management decision of the organization.
Through the technological factors the company would use the mobile app for the sales of the
products and also the competitors are using the technology for promoting the products. In some
cases these factors are affecting the company but in the positive ways which includes the
decrease in the inflation rate will decrease the cost of the product and also decrease the cost of
the labor on the product as well.

LO2
P2) Analyses the internal environment and capabilities of the organization
The internal environment of the organization is affecting the performance of the
employees of the organization. The organization has look after the strengths and the weaknesses
of the organization as well. Kellogg has to also look after the opportunities and the threats of the
organization, so the company have to analyze the internal environment by the swot analyze.
Strengths
The organization has build the string position of the company in the front of the
customers. Products are focusing on the nutrition and these are attracting the customers. The
company is doing the marketing campaign and the effective supply chain is making the work of
the company easier. The organization is making the products on the global level and also
marketing capabilities of the company are strong due to which the company has build the strong
image in the global market. Kellogg is also focusing on the employees which will help the
company to achieve the long term goals.
Weaknesses
The company has build the image of the breakfast cereal and also the majority of the
products of the company are sold in the North America. Research and development centers are
limited through which the employees would not work on the product and innovate the products
as well. The products are not segregated according to the sales and the need of the customers as
well. Kellogg is global organization which is working on the large scale but only some products
in the portfolio are sold in the global countries.
Opportunities
The organization is venturing with the other companies in the market which will help the
company to survive in the market and also fight the competition in the market. The market is
increasing accordingly and also the company is growing because of the product in ready to eat
cereal. These factors are improving the performance of the company in the market. Kellogg is
trying to expand the products according to the customers need and also in the global market. The
organization is also improvising the product according to the need of the customers.
Threats
The organization is facing the threats like the intense competition in the market and also
rules and the regulation of the government is increasing by the time which is affecting the

product and the sales of the product. The needs of the customers are changing in the term of the
break fast and the processed foods which include the quality of the packed food. New entries of
the company in the market is increasing the competition in the market for the old companies
which are already in the market (Gonzalez and et.al., 2019).
The organization Kellogg must work on the weaknesses and use the strengths for the
products and sales. Organization must grab the opportunities and try to fight the threats which
are affecting the sales of the products of the company.
M2) Evaluate the internal environment to access the strengths and the weaknesses of the
organization
The organization is utilizing the strengths for the products. The internal environment of
the organization is affecting the capabilities and the skills of the organization as well. Product of
the company are made according to the customers need which include the minerals and the
nutrition need to the body. Company has build the brand image and also positive image of the
company is built in the front of the customers. The weaknesses are decrease in the research and
the development centers which would not improvise the product according to the need. Majority
of the Kellogg products are sold in the North America only which is not good for the company.
LO3
P3) Apply porters five and evaluate the competitive forces to the given market sector
Porters five forces is the strategic management tool which is analyzing the industry and
also increases the profitability of the organization. Kellogg is implementing on the porters five
forces which would do the industry analysis.
Bargaining power of the buyers
Buyers want every thing form the organization, the product of the organization must
include the things which the customers are demanding and also at the low prices as well. The
company must provide the power to the customers and also provide the discounts and the offers
on the products which would attract the customers towards the company. The company must
come up with the new and the innovative products. New products of the company would attract
the customers.
Bargaining power of the suppliers
The companies which are manufacturing the products has to buy the raw material for the
products in bulk. So the suppliers which are supplying the products to the company can decrease

the margin of the profits on the raw material, through which the company would earn huge
profits. Suppliers can also increase the prices of the raw material through which the company
would increase the products price and also the company had to bear losses. The supplier is
having the huge impact on the products and the price of the product.
Threats of the substitutes
Company is facing the threats from the substitute products of the product through which
the company had to suffer in the way of the profits. Organization could try to improve the
services of the products sand aware the customers about the substitute products of the product in
the market which would result in the customers would not buy the substitute products.
Organization must also focus on the understanding the need of the customers rather than the
customers are buying the product or not.
Threats of the new entrants
Market is welcoming the new entries in the market through which the organization is
facing the competition in the market. The competitors would also reduce the cost of the products
and also provide the products according to the need of the customer. So the organization has to
work effectively and improvise the products or come up with the new products in the market.
Kellogg need to build the capacities and also invest in research and development of the products.
Rivalry among the competitors which are already in the market
Kellogg is also facing the strong competition of the existing competitors in the market
which are affecting the performance of the company. The organization is dealing in the packed
goods because of the types of the products the customers are easily influenced by the other
factors. So the company has to compete with the competitors in the market effectively
(Bresciani, Ferraris, and Del Giudice 2018).
M3) appropriate strategies to improve the competitive edge and market position
The company had to use the porters generic strategies which include the cost leadership,
differentiation, cost focus and differentiation focus. The organization had to deal with the
implement on the cost leadership and provide the products to the customers at the low prices.
Differentiation strategy is focusing on the unique features and the technology used in preparing
the products. Cost focus is organization just focus on the cost price and differentiation strategy is
concentrating on the market and the products features.

LO4
P4) range of the theories concepts and models and also devise the strategic planning for the
organization
Strategic planning is focusing on the products and the organization. It consists of the
mission and vision statements. The company is also focusing to achieve the long term goals of
the company.
Mission statements
The company aims of achieving the growth bin the market and generate the profits by providing
the quality of the nutritious food to the customers (Ansoff, and et.al., 2018).
Vision statements
The vision includes the stakeholders of organization which are concentrating on achieving the
sustainable growth and also to utilize the company towards the social responsibility.
Objectives and long term goals
Organization aims to provide the healthy and Good quality of the packed food to the customers.
The company is making the strategic plan for the new products which is entering the
market and also the industry analysis as well. The product is made according to the need of the
customers (Safari Farhang. and Rajabzadehyazdi 2016).
Swot analysis
the product need to be made according to the customer and also the product had to fight
the strong competition in the market. The product has the unique features which will attract the
customers. Weakness of the products is that the products have to face the competition with the
own company products for achieving the success in the market. The product had unique features
through which the product would attract the customers. Increase in the competition in the market
is a big threat for the product.
Pestle analysis
The product had to go through the pestle analysis as well. The company had to make the
product according to the macro environment of the business which would have effect on the
product. Product had to enter the market and also face the environment which includes the
political factors, economic factors, legal factors, and technological factors. It also includes the
product features band the factors which would affect the sales of the product and also the success
of the product of the market.

Market evaluation
Market evaluation is must for the company because the company had to know about the market
and the conditions of the products in the markets. The customers need are deciding the market
and also the economy as well (Adi,2015). Company must focus on fulfilling the needs of the
customers and not on the competitors in the market which are affecting the products. The
products must be prepared according to the market and the customers. The company is focusing
on following the strategy which would improve the food labeling and also the company need to
focus effectively and also the company is sponsoring the swimming programs which would also
promote the products of the company. Kellogg is introducing the guideline daily amounts which
will clearly mention the brand products and the details of the products. This strategy is also used
by the Tesco.
The company is promoting the exercise and also the company is moving towards the
community help and focusing on communicating with the people which will increase the profits
of the company. Company is also focusing on promoting the communication between the
employers and employees and build the strong communication between the customers and the
employees so that the employees of the company would solve the problems of the customers as
well.
M4) Strategic management plan with the tangible and tactical strategic priorities and objectives
Strategic plan consist of the factors used for evaluating the industry and the product
according to the market. Strategic management plan includes the mission and the vision
statement and the goals of the company as well. The organization is focusing on the products
which are already in the market and also in the other new products which are going to enter the
market. The company must focus on the mission and vision statement and evaluate the market
for the products as well (Zhanglan, Awino, and Ogolla, 2019).
CONCLUSION
From the report provided above the company Kellogg is concentrating on the pestle and
the swot analysis of the company which is affecting the performance of the company.
Organization need to work effectively and also gain the profits accordingly which is improving
the performance of the company in the market. Pestle analysis involves the factors which are
affecting the product and the sales of the products in the market. The pestle factors are economic
factors, technological factors and many more which are affecting the performance of the product.

The company is focusing on utilizing the strengths and grab the opportunities for the company.
Company need to focus on the branding and the quality of the product which would attract the
customers. The company is focusing on the improvising the food labeling and also the company
is focusing on the sponsoring the swimming programs which includes the promotion of the
products as well.

REFERENCES
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