Report on Kellogg's: Structure, Culture, People, and Performance

This report analyzes the organizational structure, culture, and performance of Kellogg's. It begins with an introduction that emphasizes the importance of effective structure and culture for organizational success. The main body delves into Kellogg's structure, identifying it as a matrix structure and explaining its impact on employee relations and information flow. The report then examines Kellogg's culture through the lens of Hofstede's cultural dimensions, discussing power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and short-term vs. long-term orientations. It also considers the role of people (employees and shareholders) and their contribution to the company's performance. A SWOT analysis is used to assess Kellogg's strengths, weaknesses, opportunities, and threats, highlighting its global presence, brand recognition, and market position, as well as its marketing challenges, slow innovation rate, and competitive pressures. The report concludes by summarizing the importance of structure, culture, and people in achieving high profitability and market share, emphasizing the need for effective organizational strategies to drive success.

Structure
and
Culture –
Assessment 1

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................8

INTRODUCTION
In an organisation effective structure as well as culture is necessary because through it
they able to conduct their work in proper way. Structure is consider as a system which is used by
a firm in order to analysis hierarchy at workplace (Thornton, Ocasio and Lounsbury, 2012). On
the other hand Culture is a technique which is based on beliefs, value, assumptions and so on.
Both factors help a firm in conducting work effectively. Organisation taken for this report is
Kellogg's which is operating in food processing industry and it is founded in year 1906 by Will
Keith Kellogg. Topics included in this report are relationship among respective company culture,
structure, performance and peoples. Moreover it will also done by implementing effective
theories as well as model.
MAIN BODY
Kellogg's is a public limited company which is operating its business operations at food
processing industry. It is founded by Will Keith Kellogg in the year 1906 and its headquarter is
situated at Battle Creek, Michigan, United State as well as it offer its products and services at
worldwide level. Products offer by respective company are cookies, crackers, cereal bars, frozen
waffles, vegetarian food, toasted pastries, cereals and many more (About Kellogg Company,
2019). Along with this respective company offer their products through diverse brands Eggo,
Pringles, Sunshine Biscuits and Grardenburger. They also have several subsidiaries such as
Kashi, Rxbar, Keebler Company as well as Bear Naked Inc. The respective company conduct
analysis in order to identify relationship among organisation culture, organisation structure, its
peoples and performance.
Organization structure is define as a system which is use by a company in order to outline
the process that how they will conduct activities and process for attaining their target in
impressive manner so that they gain competitive advancement (Brown and et.al., 2019). This
process will include several factors such as role, responsibilities and rules. It mainly describe
about stage through which information or message will flow among diverse level at workplace
effectively. There are various type of organisation structure which can be adopted by a company
in order to operate their operations in properly. Such as hierarchical structure in which every
group of employees are supervise by one employer. In this group is develop on the basis of
several factors like function, products, services and geography. It is generally adopted by large
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company where there is different level of power, authority and management. Another type of
structure is flat structure which is generally consider for small firm.
At this all departments or stages are consider at same level as well as by adopting this an
organization able to eliminate several middle level management. There are several other
organisation structure which can be adopted by management according to their operating and
size of firm such as matrix, divisional, network, line organisational, team base and many more
(Fuhse, 2013). In respect of Kellogg's organisation structure adopted by them is matrix structure
which is define as structure that is reporting relation among the set as a matrix or grid. In this
style an employees need to conduct dual reporting that is to products manger as well as
functional manager. By adopting this respective company able to exchange data and message in
effective manner as well as it promotes to democratic leadership style in which every staff of a
company treated equally. This will also leads to satisfied as well as motivated employees at
respective company.
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Illustration 1: Org chart
(Source: Org chart, 2019)

From above organization chart it can be determine that at Kellogg's employees as well as
employers need to report to to their production manager and functional manager. Along with this
senior manager of respective company need to report to presidents, CFO, SVP as well as they
also need to report to CEO and Chairman of Kellogg's i.e. Steven Cahillane. The organisation
structure of respected related to its culture, peoples and performance because through proper
structure its peoples able to conduct their work impressively as well as it they also follow culture
effectively. These all will help them in accomplishing work successfully and enhance their
performance as well as profit ratio.
Organisation Culture is define as beliefs, values, ways and assumptions which is adopted
as well as developed by a company in order to maintain unique effective environment at
workplace (Gaikhorst and et.al., 2014). In respect of Kellogg's they adopt Hofstede Culture
Dimension theory in order to understand its culture effectively. The respective model is divided
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Illustration 2: Org chart
(Source: Org chart. 2019)

into five dimensions which describe about different different culture at workplace. First
dimension is power distance is define as situation which include powerful of members at a
kellogg's. At this culture at respective company power is unequally divided among the
employees. Respective company conduct their work through matrix structure due to which they
have power index of high level. In this respect manager sometime conduct delegation of
responsibility as well as authority to their employees without consulting with them which impact
on their performance (Antonczyk and Salzmann, 2014). Second is individualism and
collectivism which means respective company should adopt collectivism culture at workplace
because it will help them in accomplish work at proper time and effective manner. This is so
because if company adopt individualism dimension then employees feel demotivated which
impact on their quality and may create conflict.
Third dimensions is uncertainty avoidance index which means Kellogg's must train their
employees in effective manner so that they can adopt risk situation effectively. This will also
help them in reducing negative impact of outside presence of pressure. Through it staffs of
respective company will fell motivated and encourage to conduct work effectively in each and
every situation effectively. Fourth dimensions of Hofstede Culture Dimension theory is
femininity and masculinity (Myers, Nyce and Dekker, 2014). In this femininity is define as
culture which are more consider as well as promote female employees. On the other hand
masculinity is define as culture which prefered male employees more. But in respect of Kellogg's
company they need to adopt both the culture masculinity as well as femininity because it will
help them in developing and maintaining effective working environment. In respective theory
last dimensions is short term and long term dimensions which describe as an organisation may
adopt short-term culture in which they develop strategies for short term basis (Steinmetz, 2018).
Along with this long term culture refers to situation where manager develop each and every
decision on long term basis. In respect of kellogg's they need to adopt both kind of culture and it
must be based on situation because through it they able to develop effective strategies which
leads to effectively handling of all situation.
In an organization peoples refers to employees or staffs who conduct work at respective
place so that they firm attain high profitability ratio as well as competitive advancement.
Moreover it will also include shareholders and it refers to individual or group of peoples who
generally invest their money in business in order to gain profit. In regards of Kellogg's, there are
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approx 34,000 staffs are working in respective company till 2018 at worldwide level. These
employees are experienced and highly skilled in field of manufacturing convenience as well as
cereal food such as corn flakes, frosted flakes, pop tarts and many more. Along with this, peoples
also include shareholders who will invest its money or funds in Kellogg's company in order to
gain profits. There are various shareholder of respective company such as The Vanguard Group,
Inc., BlackRock Fund Advisors, Bank of New York Mellon Trust, Keybank, Templeton Global
Advisors Ltd. And many more (Kellogg Co., 2019). These all are consider as top ten owners or
shareholders of respective company.
Organisation Performance of a company refers to comprising actual result or outcome of
a company which is used in order to measure intended goal or target that they want to attain. It is
generally comprise of major three areas i.e. financial performance, shareholder returns and
product market performance (Leach, 2013). In respect of Kellogg's they conduct analysis of
organisation performance so that they can develop strategies as well as objective accordingly
which leads to attainment of objective effectively. For this they adopt SWOT analysis method,
that helps in determining strength, weakness, threat and opportunity according to which company
manager can develop strategies. According to which some of the major strength of Kellogg's are
it is operating at worldwide level as well as it is also consider as second largest company of
snacks food i.e. after Pepsi co. It is also consider as heart healthy selection which attract and
encourage customers to consume their products. Moreover it is also have high brand recall as the
breakfast food that is healthy at global level. Respective company have strong awareness of its
brand at worldwide level as well as for this they also spend approx $1 billion at annual basis on
their brand marketing and advertisement (SWOT analysis of Kelloggs – Kelloggs SWOT
analysis, 2019).
Along with this there are also several weakness of Kellogg's which they need to
overcome in order to gain competitive advancement at marketplace at worldwide level. For
example some of their marketing campaigns are questionable because there is mismatch among
message convey through marketing and products offer by company. Due to which food bloggers
questioned respective company marketing activities. Along with this respective company face
several controversies which impact on their brand recall and brand image. Respective company
also adopt innovation at slow rate due to which they not able to attract customers properly at
potential marketplace.
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There are also several opportunity for Kellogg's at global marketplace such as they can
adopt market development strategies in which they can expand their business at new area that
leads to increase in sales. Along with this respective company can also get tie up with
restaurants, schools, colleges and hotels that they can offer their products at their menu through
which they able to expand sales as well as customers base (Wu, Hoy and Tarter, 2013). The
respective company can also diversify their products base into other health snacks like juice and
many more because it will help them in attracting more and more potential service users. There
are also several threat which respective company face while operating their business such as
Kellogg's operating at international level due to which they also have high level of competition at
marketplace for example Cadbury, Quaker Oats, General Mills, Nestle Ltd and many more.
Moreover, government rules and regulation towards food products are very strict, which
respective company need to follow so that they can conduct work properly (Kelloggs SWOT
Analysis, Competitors & USP, 2019). Now lifestyle of peoples are getting change due to which
they prefer more take away foods in order to save time which will directly impact on sales of
kellogg's products.
By conducting all these analysis it can be determine that for Kellogg's company it is
necessary to adopt effective organisation structure so that they able to maintain culture at
workplace. Through this peoples i.e. employees and shareholder both get motivated and
encourage to conduct their work in effective as well as through this shareholder or investors of a
respective company encourage to invest more funds in company which leads to conducting work
effectively (De, 2018). Along with this for a company it is necessary to conduct analysis of their
performance because accordingly they able to develop strategies as well as plans which help in
gaining high profitability and market shares.
CONCLUSION
By analysing above mentioned topics it can be summarised or analysis that for every
company effective culture, structure and peoples are necessary because through it they able to
perform in impressively that leads to high profit and market shares. For management of company
it is necessary to identify effective structure and culture which they can implement at their
workplace. This is so because through it they able to conduct their peoples able to perform their
work in effective manner which help in enhancing profitability ratio. Along with this for a
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company it is necessary to conduct evaluation of its performance for which they can adopt
several methods and theories like SOWT analysis and many more.
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