Modern Workplace Analysis: A Case Study of Kellogg's Business

This report provides a comprehensive analysis of Kellogg's modern workplace, examining its strategies, structure, culture, and financial performance. It begins with an introduction to Kellogg's, including its history, mission, vision, and values. The report then delves into Kellogg's strategic planning, focusing on its marketing mix (product, price, place, and promotion) and the Ansoff Matrix (market penetration, market development, product development, and diversification). The analysis continues with an examination of Kellogg's organizational structure, chain of command, and span of control. The report also includes an analysis of Kellogg's financial performance, including income statements and balance sheets for 2017 and 2018. Finally, the report concludes with a summary of the key findings and recommendations for Kellogg's future development. The report leverages secondary data and provides insights into Kellogg's operations within the context of the modern workplace.

Introducing the
Modern Workplace

Table of Contents
INTRODUCTION...........................................................................................................................1
Strategy of Kellogg..........................................................................................................................4
Structure of Kellogg ........................................................................................................................7
Culture............................................................................................................................................10
Leadership......................................................................................................................................12
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................18

INTRODUCTION
In an organisation, modern workplace used where a company launched their new
products or services. This assignment is based on Kellogg's which is a public limited company
and belongs to food processing industry. This company was founded by Will Keith Kellogg in
year 1906. Its headquarter is located in Battle Creek, Michigan, US. Respective company deals
with the products such as cereals, cookies, crackers, frozen waffles and many more. Kellogg's
serve their products and services at global level so that they can reach wide range of customers.
It also consists of several brands such as Eggo, Pringles and so on. It also have subsidiaries i.e.
Kashi, Keebler Company, Bear Naked Inc and Rxber.
History of Kellogg
This organisation adopted Kellogg's name in year 1922 when they started making cereals
others than cornflakes (Kellogg Company, 2019). Respective organisation also acquired many
companies such as Fean International who produce soup, sauces and many more in 1970. Along
with this, it also acquires Mrs. Smith Pie company in 1976 and many other organisation.
Kellogg's cover North America, Europe, Latin America, Asia as well as Australia for making
their sales.
Mission
The mission of the company is to be a global company determined to build a long term
growth in sales as well as profit in order to enhance its worldwide leadership status by providing
nutritious food goods of premium value.
Vision
Organisation vision is to improve as well as delight the global through foods and brands
that matter (Kellogg Mission, Vision & Values, 2019).
Values
Respective company contains certain values such as integrity, accountability, passion,
humility, simplicity and many more. The purpose of Kellogg's is to nourish families in order to
flourish and thrive.
Financial Performance
Income Statement for 2017-2018:
Income Statement
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All numbers in thousands
Revenue 12/29/2018 12/30/2017
Total Revenue 13547000 12854000
Cost of Revenue 8722000 8040000
Gross Profit 4825000 4814000
Operating Expenses
Research Development - -
Selling General and Administrative 2936000 3017000
Non Recurring - -
Others - -
Total Operating Expenses 11658000 11057000
Operating Income or Loss 1889000 1797000
Income from Continuing Operations
Total Other Income/Expenses Net -364000 -133000
Earnings Before Interest and Taxes 1889000 1797000
Interest Expense -287000 -256000
Income Before Tax 1525000 1664000
Income Tax Expense 181000 410000
Minority Interest 558000 16000
Net Income From Continuing Ops 1344000 1254000
Non-recurring Events
Discontinued Operations - -
Extraordinary Items - -
Effect Of Accounting Changes - -
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Other Items - -
Net Income
Net Income 1336000 1254000
Preferred Stock And Other Adjustments - -
Net Income Applicable To Common Shares 1336000 1254000
Balance Sheet for 2017-2018:
Balance Sheet
All numbers in thousands
Period Ending 12/29/2018 12/30/2017
Current Assets
Cash And Cash Equivalents 321000 281000
Short Term Investments - -
Net Receivables 1375000 1410000
Inventory 1330000 1217000
Other Current Assets 131000 128000
Total Current Assets 3157000 3036000
Long Term Investments 430000 429000
Property, plant and equipment 3731000 3716000
Goodwill 6050000 5504000
Intangible Assets 3361000 2639000
Accumulated Amortization - -
Other Assets 1051000 1027000
Deferred Long Term Asset Charges 246000 246000
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Total Assets 17780000 16351000
Current Liabilities
Accounts Payable 2427000 2269000
Short/Current Long Term Debt 510000 409000
Other Current Liabilities 550000 581000
Total Current Liabilities 4529000 4522000
Long Term Debt 8207000 7836000
Other Liabilities 1885000 1799000
Deferred Long Term Liability Charges - -
Minority Interest 558000 16000
Negative Goodwill - -
Total Liabilities 14621000 14157000
Stockholders' Equity
Misc. Stocks Options Warrants - -
Redeemable Preferred Stock - -
Preferred Stock - -
Common Stock 105000 105000
Retained Earnings 7652000 7069000
Treasury Stock -6051000 -5874000
Capital Surplus 895000 878000
Other Stockholder Equity -1500000 -1457000
Total stockholders' equity 2601000 2178000
Net Tangible Assets -6810000 -5965000
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Strategy of Kellogg
There are various strategies that is adopted by Kellogg company in order to attain their
desired goals and objectives in effective manner (Angouri and Miglbauer, 2014). These strategic
planning of firm are determine below as:
Marketing Mix
Kellogg belongs to an American public limited organisation that deals in manufacturing
of food production. At present Kellogg is one of the second largest company of the world in
terms of snacks food. As per the mission of the company is to provide healthy food to their
customers, respective organisation decided to adopt strategy of marketing mix. This marketing
mix of Kellogg is based on 4P's i.e. product, price, promotion as well as place. These 4P's is
explained as follows:
Product
Kellogg deals in various products such as vegetarian food, cookies, frozen waffles,
toaster pastries and many more. The company mainly focus on production of cereals because
they have its vast market share at global level. The aim of this strategy is to provide quality as
well as better products to customers so that they can retain them for long duration. Along with
this, the main benefit of cereals is to maintain fitness which becomes as lunch option for various
customers. This cereal produces more than $400 billion of sales for respective firm (Kellogg’s
Marketing Mix (4Ps) Strategy, 2019). In addition to this, $230 billion is also generated from
production of snacks. Kellogg largest brand in cereals category is Pringles which was introduced
with the motive to increase sales. The company put more emphasis on its new products as well as
its variants such as Cheez-It Crunch'd, Kellogg's Raisin Bran with Cranberries and many more.
Respective company keep into concern customer taste and preferences before producing or
launching any new product.
Price
The pricing strategy which is being used by respective company is competitive pricing
strategy. The motive to adopt respective strategy is to provide their products at reasonable price
to their customers (Angouri, 2012). Kellogg also provide offers as well as discounts schemes to
its potential customers. In order to increase sales as well as profits of the company, Kellogg keep
price of their products flexible so that consumers can easily afford them. There is varying in
pricing policies because there is different manufacturing price at different location. As respective
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company is producing more cereals products in its market, they are more bending towards the
usage of competitive pricing.
Place
Kellogg has its largest market in four countries which is U.S, Canada, U.K and Australia.
This company focuses more on these countries as from here they are able to generate more
revenue as well as sales (Appelbaum, 2013). Respective organisation has various distribution
channels such as vending, convenience and so on. They also take help of brokers for their
distribution system of specific products. They also provide door to door delivery system of some
of its brand to supermarkets. Kellogg has its large manufacturing factory in European branch
which is located in Trafford Park in Manchester, England. In order to reach wide range of
customers, company has opened its warehouse from where consumers can easily get their
preferred commodities. In order to determine the sales figure of the respective organisation it is
necessary for Kellogg to provide customers products as per their needs and requirements. By
adopting such strategies, respective organisation will make convenient for their customers to
reach them so that they can buy their commodities easily.
Promotion
Kellogg make effective use of marketing strategy so that they can aware customers about
their brand as well as products. The company use several promotional strategies such as they use
prizes in cereal box as their promotional tool in order to target children, sponsored of USA
gymnastics and launched series for kids such as dragon tales and many more. They took
different promotional move by launching a PC game named Mission Nutrition which used to
release some special pack of cereals. Respective company has become #41 Chevrolets in auto
racing field (Marketing mix of Kelloggs – Kelloggs Marketing mix, 2019). In order to increase
sales as well as growth of snacks, Kellogg has targeted emerging market so that they can expand
awareness of products to their consumers in effective as well as better manner.
Ansoff Matrix
By using the ansoff matrix model, respective company will be effective determine its
strategies through which they will able to achieve their goals and objectives in better and
productive manner. The model consists of four components i.e. market development, market
penetration, product development and diversification. These components in respect of Kellogg
company is described below:
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Market Penetration
In this stage of ansoff model, company focuses on enhancing their existing product in
existing market. This is because market penetration consists of low risk but due to this,
marketplace becomes unattractive for competitors (Bennett, Pitt and Price, 2012). In respect of
Kellogg, if organisation adopt this strategy then they will able to focus on other customers who
buy similar products as Kellogg from their substitutes. In order to retain their customers for long
duration, they need to promote their product with extra worth. This will aid them to build strong
bond with customers as well as they will also able to acquire new as well as existing consumers.
Market Development
At this stage business aim at launching their existing products in new market. Market
development has medium risk as well as they create new market segment. In reference of
Kellogg's, by applying this strategy, respective organisation can explore their existing goods in
new market and target their potential customers which will aid them to enhance their sales and
revenue.
Product Development
It is defining as a process in which business produces their new products in existing
segment of market. For this, company have to conduct effective market research which will help
them to gain competitive advantage. In context of Kellogg's, with the help of this strategy,
organisation can modify their product and add extra worth to it so that they can sustain their
product for long time period.. This will aid them to increase their sales as well as profitability
ratio.
Diversification
It means that business produces their new product in new market segment. As for this
they have to formulate effective marketing strategy so that they can sustain their product for long
period of time (Bloch and Richmond, 2015). In context of Kellogg, if the company launches its
new product such as Nutri Gain Bar chocolate, so for this they have to make a different strategy.
Introducing new product at new market segment will help company to build their customer base
stronger.
By analysing above mentioned strategies, Kellogg must adopt strategy of diversification
is effective for the organisation. This is because, through this, they will get the opportunity to
explore new market segment where they can target their customers. This will aid them to expand
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their business at international level which will enhance their brand image as well as their
goodwill.
Structure of Kellogg
Chain of command
Kellogg company has a corporate structure of decision making authority. It is the
centralised structure in which employees have to obey the instruction given by their superiors
(Bucher, Fieseler and Suphan2013). The decision made by the superior along with their
subordinates have to be match with the strategy, mission and vision that is framed by top
management of respective company. The organisation structure of Kellogg company is multi-
divisional which means employees of organisation has to coordinate the activities in order to sell
their goods and services across several cities, regions or countries. Following such type chain of
command, respective firm is able to achieve its goals and objective in a given period of time.
Span of control
It is define as number of employees which are in direct control of manager in an
organisational structure. With the organisation structure, its span of control is determined such as
flat organisational structure has wide span of control whereas tall organisational structure has
narrow span of control. In respect of Kellogg Company, it has tall organisational which indicates
that it has narrow span of control. Through this, subordinates is able to have effective
communication with other members of the team. Along with this, it will become easy for
manager to handle small group of employees. In addition to this, it will also open opportunities
for staff to get promotion.
Fatehi classification by Product
The classification of product in marketing is done on in order to determine buying
behaviour of customers. It consist of four components which is explained as follows:
 Goods for convenience:It refers to those products which customer buy without any
thought or planning (Dias and et.al., 2013). These products may be soap, toothpaste and
many more. Customer only differentiate their product on the basis of brand and make it
as a preference while purchasing. In context of Kellogg organisation, products like
cornflakes, cereals and many more are necessary for customers for maintaining health.
These products are nutrition as well as are also available at reasonable price.
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 Shopping goods:It is define as those commodities in which customer makes decision
before buying and take price, quality and other factors into consideration. It is because
they prefer to buy those which are necessary at current period. The products can be
clothing, car and many more. In reference to Kellogg, its premium products like Special
Kellogg Nourish products which is expensive and can only be bough when it is
necessary.
 Product classified as specialist:Products and services offer by a company is divided into
two category which i.e. general products as well as specialities products (Kellogg's,
2019). These will help an organization in attracting customers and encourage them to
purchase, this will also help in promoting particular brand. Along with this buyer or
customer are always ready to pay high amount for speciality product. In respect of
Kellogg's, products offer by respective company are effect and full of nutritions.
Moreover it is also consider as source of several nutritions which must include in child
diets such as Vitamins A, B6, B12 and D which make their breakfast healthy and provide
full energy.
 Goods often unsought:These products are classified under those categories in which
customer has to but goods in which they does not focus are not intended to buy such as
life insurance. In respect of Kellogg, there are some goods which customer but only to
maintain their health and reduce their fat. Along with this, while purchasing unsought
goods, becomes necessary for consumers rather than waiting to buy it.
Geography
Kellogg is a food company which produces its commodities in 20 countries and has
beyond 180 stores across the world. In US, respective company generate around 65% of revenue
(Kellogg Company, 2019). This organisation has manufacturing facilities in US which consist of
four cereal plants as well as warehouse in Battle Creek, Lanchester, Memphis and Omaha. Rest
of the facilities are situated in Georgia, Kentucky, Michigan, Ohio. In international countries
other than United States, it has additional manufacturing facilities as well as warehouse in
around 20 countries in Europe, Asia, Africa and South America. In addition to this, respective
company also has its joint ventures in China, Nigeria as well as Turkey.
Functions
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There are various health benefits from products of Kellogg's such as Cornflakes, cereals
and many more. These benefits are described as follows:
 Nutrition Packed:Products like cornflakes are highly nutrition consist vitamins,
minerals, protein, carbohydrate and so on. These source help in preventing heart ailment
as well as cancer.
 Prevent from heart disease:Food with low fat help in keeping stomach full and also
reduces intake of unhealthy food. These products of Kellogg helps in preventing heart
diseases (Dixon, 2016).
 Weight loss:Cornflakes is one of the effective product that helps in reducing weight
because it contain low fat as well as more protein. This aid in maintaining diet of an
individual.
Culture
Hofstede Culture Dimensions Theory
This model was introduced by Geert Hofstede in order to understand variation in culture
among countries as well as recognize the method that business is done across various culture.
This model was launched in year 1980 with the goal to ascertain dimensions in which culture
differ (Hofstede’s Cultural Dimensions Theory, 2019). Respective model has five dimensions
which is explained as follows:
 Power Distance Index:It is define as a power index in which power as well as inequality
is beared. This inequality is mainly viewed from the viewpoint of lower level of
management. In a firm high power distance index is indicated that in an organisational
culture, employees are not treated equally as well it also develops bureaucracy. On the
other hand low power distance index, culture encourages structure of organisation that
are flat and also decentralise decision making authority. This develops healthy and
positive environment in company.
Kellogg:As respective organisation consist of matrix organisational structure, it has high power
distance index. Due to this, management delegated responsibilities to specific superiors without
taking into concern other employees of the organisation. This created a negative impact in mind
of staff which can affect the effectiveness of company.
Unilever:On the other hand, this organisation has a divisional structure which consist of low
power distance index. In respective company, organisation is divided into different department
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