Kellogg's Company: Structure, Culture, and Hofstede's Model Analysis

This report provides a comprehensive analysis of Kellogg's, examining its organizational structure, including geographical divisions and departmental functions such as sales, marketing, and human resources. It delves into the company's culture, emphasizing its code of ethics and commitment to the environment. The report also applies Hofstede's cultural dimensions theory to understand cultural differences within the organization. Furthermore, it discusses Kellogg's product lines, market strategies, and financial performance. The analysis highlights the benefits and drawbacks of its geographical structure, the roles of different departments, and the importance of adapting to cultural nuances. The conclusion summarizes the key findings, emphasizing how Kellogg's can leverage its structure and culture for continued success in a global market.

Structure and Culture

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ......................................................................................................................................1
CONCLUSION ..............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Structure of an organization define the framework in which business activities are
carried further. Organisation culture portrait the working environment, work ethics and core
values (Kusumawaty 2018). Kellogg's is an American food manufacturing company and its
headquarter is in Battle Creek, Michigan. They have diversified product line in cereals and
convenience food. Company is doing business in 180 countries. Two brothers Dr. John Harvey
and Will Keith Kellogg's founded the company in 1898. Company is evaluating operations
activities to make living for customers. Organisation is developing new ways to improve the
performance and developing new product as per customers taste and preference. Company is
spending more on Research and development programme to minimize the future theft.
Main Body
Kellogg company is major brand in America which provide ready to eat Cereals and
other eatable items. W.K. Kellogg's had developed a technique of producing crunchy and
flavoured flakes of processed grains. Company is using innovating methods of advertising and
improving there quality of products to capture large market share. In year 1969 company began
to diversify and Salads Foods was introduce to its product line. With approximately 31,000
employees across worldwide and manufacturing plant in over 18 countries. Company is rich in
legacy, preserving the quality and trust of consumers.
Kellogg code of ethics and culture provide balance in business environment and drive
outcome in legal and responsible way. Organisation is committed and have respect of
environment(Ciccarelli, Woodward 2018). Employees are treated with respect and dignity to
make effective structure and culture. It is doing well in market and but company is still working
on major areas such as marketplace, workplace, community and future growth. Company have
core business to provide nutrition food to their respective customers and cereal is a product
which meet the nutritional needs of people across the world. The annual revenue of Kellogg's is
around $12.923 billion and net profit is around $1.269 billion as of 2017.Kellogg's become world
Second largest company after Pepsi co and acquire Pringles brand from P&G in a deal of 2.7
billion dollars.
Kellogg have vast organisation structure where top most executives make decision and
implement new policies to take company at new height. Firm have different department to carry
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out marketing and production activity. And organisation setup these department according to
geographical location and provide best possible service to their customers.
Geographical Structure:Kellogg's expanded their market in various region of world and
they have presence in north America, Europe & middle east, several parts of Asia and Africa.
Organisation become successful to reach every family across worldwide. It is a structure where
organisation structure is divided on the basis of geographic location under which company
perform their business activities and probe orders from head office. This serves the needs of
individual within and outside the country. Geographic location can solve the issue of logistic and
minimize the transportation cost which impact directly on consumers.
Benefits of geographical locations: The major plus point of geographical location is
that local people are familiar with their environment and can solve problems faced by
organisation(Maldonado, Ramos 2018). And employees have to focus on particular region rather
than involving in may locations. This will lead to profit maximization for an organisation and it
is easier to track inputs and outgoing of product, sales and profit margins due to different
locations. Department head of regional office may have knowledge about geographic division
and can mange the channel of distribution effectively. It has been identified that geographic
division is some how responsible for all the functions and business activities in a pre- determine
geographical areas. Thus it will prove to be the sustainable structure for Kellogg's to reduce
market uncertainty and future loss.
Major drawback of geographical structure : It may increase the efficiency in
productivity and profit making it may create artefact of department within organisation itself. In
may create chaos in department, manufacturing units and in logistic department which will be
challenging for the company to manage. Also it is impossible to standardise employees skills as
local persons are hired in geographical location to reduce the cost for company. Thus,Kellogg's
use geographic approach when product offering is simple and customers taste and preferences
are same.
When to use geographical division: Division are done for ease of doing business for a
particular company. Before involving in geographic activities company have to identify culture,
language and individual taste and preferences for establishing impressive division. Kellogg's can
use division if they wants to reduce the cost of transportation because it will directly minimize
the price of commodity. Another factor where organisation where organisation division can be
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suggested if company wants to set up new plant in different country it may be useful for business
venture as well as for final consumers.
By product : Company offer many products such Cereals, Nutrition grain bars and
toaster Pastries and it is one of the leading brand in particular field. Kellogg's have its largest
manufacturing unit in Trafford Park and united kingdom and which also the location of
European Headquarters. Company collaborated with Sanitas Nut food company and became
Kellogg's food company in July 1908. they diversified their product line from cereal to Nut
butter and meat. As the company began to grow, they used to acquire various small business
such as Salada foods, Feran international and pure packed foods . When Kellogg's fail to acquire
large market share they lose hold on business and their profit were down by 36.7%.
Organisation have introduced their new product line which include Crispix, Raisin square
and Nutrient grain Biscuits. In march 2001,Kellogg's made their largest merger by acquiring the
major stake of Keebler company. In the present scenario company is actively taking part in
environmental issue and became a part of World Cocoa foundation. In 2017 company
inaugurated their new corporate office in Chicago and acquire Rxbar for 600 million dollars.
Company have to communicate with different departments in order to facilitated smooth
functioning of business. Every individual department have their own roles and duties and further
explanation are given below.
Sales department: Having a effective sales force may lead the success of company
because they are only responsible for making sales and adding more customers (Kellogg 2018).
Major responsibilities of sales person is to make healthy relationship with respective customers.
Kellogg's is hiring confident and hard working sales candidates to capture large customers base
which will automatically increase profit. Company is keeping permanent contact with their
customers and take feedbacks to improve their product and services where it is required.
Sales team of Kellogg's is developing a rapport with their present and new customers to
figure out their taste and choices as well as coordination with marketing team to reach
organisation goals. Company and sales team are working hand in hand to retain their existing
customers to maximize their profit. Best part is that company have not spend their money to
attract customers and easier and less time consuming.
Marketing department : It is known as heart of company, identifying and producing all
raw material which essential to make business run. Major responsibility of marketing department
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is to carry out research, customers perspective and investors view point to represents company
positive side. Marketing team should need to identify the customer needs because it is changing
rapidly due to variety of choices preset in market. For Kellogg's it is important to do proper
research and development before entering in new market, this will reduce the risk of failure and
chances of success will be higher. Marketing team should monitor and track the current trends to
gain competitive advantages. Marketing department is responsible for image and brand value,
company can charge high price if they able to improve their quality in offering.
Kellogg's service and pricing are important aspect for future growth plan and research
should be based on market strategies not on customers. A strong marketing team helps in
maintaining balance between demand and supply. Marketing department make promotions
activities and advertisement for companies.
Human resource department : It is department of where HR are in charge of screening,
recruiting and training of employees for better performance. As to competitive with rivals, HR as
important role in helping company to deal with changing environment and fulfil the demand of
quality employees in organisation(Byrne 2019). For Kellogg's it is important to have skill
employees because they increase efficiency in operations. HR should conduct training and
development session for employees to enhance their talent. In this era of competition, it becomes
prime duty of HR department to hire the best candidate for job.
Hofstede's cultural Dimensions theory, was created by Greet Hofstede's, it is a define
structure to understand the differences in various culture in organisation and across world. In
other words it determine to get in-depth knowledge of different working group and dimension of
culture and ethics and their impact on organisation. It has six categories which Kellogg's can take
as a consideration :-
Power distance index: It is a method to calculate inequality and power difference in
organisation. If power distance index is high that clearly indicates a culture equality and
encourages regime, and have dignity of rank and authority. And low index shows that culture
indicates flat organisation structure and decision making authority are given to every department.
Kellogg's have low power index as organisation use decentralized system for business
operations.
Individualism vs. collectivism: Both dimensions are consider as grade where societies
are involve in particular group. Individualism focus on achieving personal goals where as
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collectivism indicate team work and task is completed within group. Kellogg's can use
collectivism as team work provide efficiency and quality in work which will help organisation to
achieve their goals.
Uncertainty Avoidance Index: This dimension is take as consideration where situation
are unknown. High level of avoidance index shows that there is low tolerance for uncertainty and
low risk taking. This can be reduce if organisation take effective measure and follow regulation
as per norms. In the case of low uncertainly avoidance index indicate high endurance of
uncertainty In the context of Kellogg;s company must use low avoidance index to reduce future
theft and can maximize their profitability.
Masculinity vs. Femininity: It refers attitude toward equality between gender and
individual behaviour in company. Masculinity have features such as assertive, focus on creating
organisation wealth. On other hand femininity comes with modest nature and spend quality life.
Kellogg's must promote both aspect as they perform their suited as team in organisation and this
will lead company at new level.
Long term orientation vs. Short term orientation: Long term orientation emphasis on
future and makes strategies for long run in business. Whereas short term orientation focus on
current goals and deliver short term profit. Kellogg;s must adopt long term orientation strategies
because they reduce risk factor. Result may be late in long term but it will guarantee success for
organisation.
Indulgence vs. Restraints: This kind of dimension works around societies and control
desire of achieving something. Indulgence shows societies positive side where people ae living
quality life. Restraints indicates that social rules and regulation must be change for betterment. In
the case of Kellogg's HR must restraint the culture and structure for smooth functioning of
company.
CONCLUSION
As per the above report, it has been identified that Kellogg's have wide range of product
line and have customer base worldwide. Company can adopt Hofstede's model to make effective
structure and culture environment in organisation. In this report importance and drawback of
geographical location has been portrayed for Kellogg's which will provide ease for understanding
diverse market.
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REFERENCES
Books and Journals
Byrne, J.V., 2019. Outreach, engagement, and the changing culture of the university. Building
the Field of Higher Education Engagement: Foundational Ideas and Future Directions.
Kellogg, K.C., 2018. Subordinate activation tactics: Semi-professionals and micro-level
institutional change in professional organizations. Administrative Science Quarterly,
p.0001839218804527.
Maldonado, T., Vera, D. and Ramos, N., 2018. How humble is your company culture? And, why
does it matter?. Business Horizons. 61(5), pp.745-753.
Ciccarelli, M.R. and Woodward, J., 2018. Establishing the Administrative Structure and Support
for a Healthcare Transition Program. In Health Care Transition (pp. 87-98). Springer,
Cham.
Upton, S., 2018. Overcoming Cultural Resistance to City-Regionalism: What Role for
Universities?. In Entrepreneurial Learning City Regions (pp. 249-266). Springer, Cham.
Harris, J.C., 2019. Whiteness as Structuring Property: Multiracial Women Students' Social
Interactions at a Historically White Institution. The Review of Higher Education. 42(3),
pp.1023-1050.
John, L., Developmentally Appropriate Standards: A Recommendation to Kellogg FIElD
School.
Kusumawaty, D., Suhandono, S., Aryantha, I. and Pancoro, A., 2018. The Response of TLR3
and IL-1ß Genes Following Exposure to LPS, Poly (I: C), Zymosan in Culture of
Gouramy (Osphronemus gouramy) Kidney Cells. Pertanika Journal of Tropical
Agricultural Science. 41(3).
Obaidullah, A.J., Ahmed, M.H., Kitten, T. and Kellogg, G.E., 2018. Inhibiting Pneumococcal
Surface Antigen A (PsaA) with Small Molecules Discovered through Virtual Screening:
Steps toward Validating a Potential Target for Streptococcus pneumoniae. Chemistry &
biodiversity. 15(12), p.e1800234.
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