Strategic Analysis Report: Kellogg's Performance and Recommendations

This report provides a comprehensive strategic analysis of Kellogg's, a leading breakfast cereal maker. It begins with an introduction to strategic management and its significance, followed by an examination of Kellogg's unique resources that contribute to its success in the nutrition marke...Read More

Strategic Management

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Meaning and significance of the strategic concept......................................................................1
TASK 2............................................................................................................................................2
Unique resources which have contributed towards the success of Kellogg’s in the nutrition
market..........................................................................................................................................2
TASK 3............................................................................................................................................2
PESTLE analysis to evaluate current position of Kellogg’s.......................................................2
TASK 4............................................................................................................................................4
Findings and recommendations...................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic management can be defined as process of formulating and implementing major
goals and objectives within organisation. These goals are set by senior managers on the behalf of
business owners. Strategic management helps in assessing internal as well external environment
of organisation. Basically, this concept provides right directions so that organisational goals can
be achieved in most effective manner. This project report is based on Kellogg’s company which
is known as United States’ biggest breakfast cereal maker. In this report, a detailed description
on strategic concept has given along with PESTLE analysis of Kellogg’s. At last some
recommended actions has been discussed which can help this company in enhancing its financial
growth.
TASK 1
Meaning and significance of the strategic concept
Strategy is that concept which helps in formulating, implementing and determining different
functional decisions which can help in accomplishing long term goals and objectives of business
enterprise. The main function of strategy is to join organisational mission and vision with
business plans and polices so that company can achieve its desired results in most effective
manner. In simple words, it involves various actions which assists in attaining organisational
desired objectives and goals. Concept of strategy largely depends upon two major procedures
which is regarded as strategic management. These are follows as under:
Formulation: This can be defined as process of analysing market condition and scheming
adequate strategic actions so that organisation can attain competitive advantage and can compete
its market competitors. While formulating new strategy company should consider various factors
which are follows as under:
 Organisational nature
 Products and services of company and its target market
 Purchasing behaviour of customers
 Geographical scope of business enterprise
 Efficiency, effectiveness and capabilities of organisation
 Future opportunities and threats of business enterprise
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All these factors play an important role in strategy formulation. Without considering these
factors company cannot formulate effective strategy for work place.
Implementation: The second major process of strategy is implementing. It helps in aligning
available resources towards organisational goals. Tis procedure depends upon the number of
factors which includes structuring of resources, leadership arrangement, effective
communication, management, performance monitoring etc. strategic management helps in
implementing right process in right situation. Also, it helps in evaluating progress of
organisation’s goals.
Hence, it can be said that strategic management plays a significant role in every business
enterprise. Without this, company cannot see its future and also cannot achieve its desired
results. It helps in developing various plans, models and strategic actions which can lead
company to high level of growth and success. In modern world, overall structure of
organisational largely depends upon identified strategies of business.
TASK 2
Unique resources which have contributed towards the success of Kellogg’s in the nutrition
market
Kellogg’s is one of the most successful company and also it is highly popular in nutrition
market. All this credit goes to its human, technical and financial resources. Without this, it
cannot accomplish its desired goals and also cannot survive in such competitive market place. I
have high skilled employees which helps it in producing health products and attracting a huge
number of customers.
TASK 3
PESTLE analysis to evaluate current position of Kellogg’s
For making good strategic planning, it is highly important for business enterprise to use
different tools and techniques. Basically it is an organisational process which helps organisation
in accomplishing effective strategy. It involves strategy plan, directing programs, policies,
decisions, allocation of resources so that company can develop a good strategy. There are various
steps involved in strategic planning which are follow as under:
 Creating of actual strategy by strategic thinking
 Determining environmental factors and other business competitors
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 Involves guiding principles to helps company in achieving its strategic intentions
 Implementation of required actions plans to accommodate with guiding principles
There are various tools and technique which is used by company for strategic planning so that
company can achieve its desired results. There are two major concepts which are SWOT analysis
which helps in identifying micro environmental factors and second one is PESTLE analysis
which helps company in identifying macro environmental factors. Kellogg’s wants to develop a
successful strategy for that it needs to analysis to eluate macro environmental factors which can
be determined by taking help of PESTLE framework.
PESTLE Analysis of Kellogg’s company
It is highly important for its managers to make clear goals while implementing new strategy
within work place. Also, they need to analyse market place so that they can fulfil market demand
in most effective and systematic manner. Also, it helps organisation in identifying actual need of
people so that it can produce quality products according to their needs. In the context of
Kellogg’s, it is highly important to produce healthy products so that its customers can live a
healthy and long life. So, this organisation should make its strategies to consider which is
associated with health and fitness organisations. Other main issue is that customer should have
knowledge about the consumption of product and also should know that how much quantity
should they take in one go. To fulfil this goal company is giving core focus to fitness activities
and also it makes efforts so that people can get involve in improving health. To resolve this,
issue this enterprise wants to develop a strategy namely guideline daily amount which helps
customers in determining that how much amount they should consume daily for their nutrition
meal. But while developing nay strategy it is highly important for company to analyse all macro
environmental factors which can affect its strategy and performance within market place. With
the help of PESTLE analysis, it can scan its business environment in which it operates its
organisational functions. It involves various components which are follows as under:
Political factors: Kellogg’s is a multinational company so it has to work under different political
environments. It has its branch in United Kingdom as well. People of that country eats its
products in big quantity as it helps them in managing their fitness level. So UK government
supports this enterprise which is a positive point for this organisation.
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Economic factors: Different companies of UK is get affected after recession but Kellogg’s is
only one company which is not effected by recession because it is known as most popular
breakfast in United Kingdom.
Social factors: Most people of UK are health conscious so they give core importance to
Kellogg’s. there is huge demand of this company. In simple words, most of the citizens of United
Kingdom eats Kellogg’s products in their breakfast.
Technological factors: United Kingdom is one of the developed country as it spends allot on
research and development. Kellogg’s is also gives its core attention to its R&D department so
that it can produce more innovative and health products which can resolve health related issues
of people and also can provide them fitness.
Legal factors: There are various legal rules and regulation in UK regarding health and safety.
But government of United Kingdome supports this company can provide it enough assistance to
work under health sector because it provides health products to customers.
Environmental factors: It involves climate and weather related issues which can affect business
organisation. But Kellogg’s is that company which can sustain in UK’s weather for long time
period.
Moreover, by evaluating above mentioned points it can be said that current position of
Kellogg’s in UK market is very strong as it produces its products and services to consider
different macro environmental factors. Also, it gives core attention to its customer’s health. So, it
can sustain in UK market for long time period. Current market situation of this organisation
represents that it is a highly developed company and also can lead to high level of success in its
upcoming years.
TASK 4
Findings and recommendations
By evaluating PESTLE analysis of Kellogg’s it can be said that it is growing into right
direction. But future strategy of this company should be that it has to concentrate more on
product’s variety. Because in present time, needs and demands of customer are continuously
changing so it has to become more flexible and also should produce quality goods so that it can
attract a huge number of customers. As, there are various cereal breakfast maker companies’ in
UK so it has to produce innovative products so that it can survive in such competitive market
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place and also can compete its various market competitors. Also, it should give importance to its
promotional activities so that it can attract a huge number of people and can cover large market
share.
CONCLUSION
By evaluating this project report, it has been concluded that strategic management is most
important concept of all business enterprise. As, it helps in developing and designing various
policies and plans which assists company in accomplishing its desired goals and objectives. With
the help of this, organisation can allocate its available resources in most effective and systematic
manner. This project report is based on Kellogg’s which is a well-known breakfast cereal maker
company. In this report, meaning and importance of strategic concept has been evaluated. Also,
some unique resources have been described which have contributed in huge success of
Kellogg’s. apart from this, PESTLE analysis has been conducted to determine current situation
of this organisation with wok place. On the basis of its current growth it can be said that it should
focus more on its strategic management so that it can accomplish its desired goals in appropriate
manner.
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REFERENCES
Books and Journals
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Hodgkinson, G.P. and Healey, M.P., 2011. Psychological foundations of dynamic capabilities:
reflexion and reflection in strategic management. Strategic Management Journal, 32(13),
pp.1500-1516.
Hair, J.F., Sarstedt, M., Pieper, T.M. and Ringle, C.M., 2012. The use of partial least squares
structural equation modeling in strategic management research: a review of past practices
and recommendations for future applications. Long range planning, 45(5), pp.320-340.
Ackermann, F. and Eden, C., 2011. Strategic management of stakeholders: Theory and
practice. Long range planning, 44(3), pp.179-196.
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