This report provides an in-depth analysis of Kellogg Company's operations management. It begins with an introduction to the company, its mission, vision, and values, as well as its operating principles. The core of the report focuses on the main cost components, including Cost of Goods Sold (COGS), Selling, General, and Administrative Expenses (SAG), capital expenditures, and salaries and related fringe benefits. Each component is defined and quantified based on the 2018 annual report. Furthermore, the report offers several suggestions for cost reduction, such as implementing input machines, reducing printing, powering down nonessential equipment, leveraging social media advertising, harnessing virtual technology, cutting production costs, and hiring graduates while maximizing employee skills. The report aims to provide insights into Kellogg's financial structure and offer actionable strategies for improving its operational efficiency and profitability.
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