Internal and external analysis of Kelloggs

Internal and external digest of KelloggsIn this assignment Im going to make an external abridgment and an internal outline of the Kelloggs phoner. Im going to choose four tools to make the any analysis. For the external analysis I pull up stakes do PESTEL and ostiarys five force models and for the internal analysis I will do the Value chain and a benchmarking on Cereal SBUPresentation of the organizationKellogg Company is the United States largest texture-Maker.In 1898, leave behind Keith and John Harvey give birth to the famous breakfast cereal Kelloggs lemon yellow Flakes. Thanks to the success of the products Will Keith create in 1906 the Battle creek Toasted Corn Flake Company. Kellogg is the leading producer of breakfast cereals in the military personnel. It takes places in 18 countries and sells it products in more than 180 countries.Between 1938 and the pass day Kellogg opened manufacturing plants in the UK, Canada, Australia, Latin America and Asia.Kellogg produ ce a wide range of cereal product including the well-know brand of Kelloggs corn flakes, strain krispies, special K , fruit n fibre, as well as the nuti-grain cereal bars.The philosophy was remedyd diet leads to improved healthKellogg company mission statementKellogg is a Global Company Committed to twist Long-Term Growth in Volume and Profit and to Enhancing its Worldwide leading Position by Providing Nutritious Food Products of Superior Value epitome of Kelloggs external env contractmentAnalysis of Macro-environment influences through the PESTEL modelThe headquarter of Kellogg company is before long base in Battle Creek in the Michigan. I will base my PESTEL analysis in the country of the USAPolitical Reforms for the line of work of obesity in USA (wide problem)US focus on cereal products in the level of 17% of the food commercialize(2000)Economical The deterioration of universal economic activity and the contraction of the food market have non been without consequences f or the food industry .Faced with financial difficulties and difficulties of access people doesnt have cash to buy expressive food because of the decrease of salary.High unemployment rate 9,00%( january 2011)gross domestic product in 200914266milliards of $Curent Deft 6% of GDP attach of the puffiness rate1,5%Decrease of the money , low rate of the dollar operose competition amidst the breakfast and snack brandsDecrease of all the gross revenue in cereal market (began in 2005 with less 0, 4%) kind Population of USA 312.061.000 people step-up of obesity rate so the cereal market break-dance the sector of light food neglect of time to take a breakfast American people would deal some easy to transport at work or at school to eat.The increase in the Third Age population free radical (due to better living conditions and better health cargon) will decrease the gross sales of Kellogg children product and down growth for adult products.Importance of the health, safetyPeople want to b e inform on what people itTechnological mental hospital on the cereal market different piece of ground, small bar (snack), resealable package (or close package)Recycling packageInnovation in communion and publicizing levelScientific progress on the health- diet foodIncrease the cost of RDKelloggs did a matrix Sustainability ingredientsEnvironmental Development of the biologic and rude(a) foodDevelopment of ecologic packaging, and recyclable packaging to avoid the bobbleLegal environnemental charterHealth claims is becoming more prevalent with the increase of the authority of American heath associations.Globalization creates homogeneity of consumer behaviour. Globalization is a key driver for standardization. This sector of tourism has to take into account the requirements of fieldwide customers. (Standardize the food, the drink, the activities). Because of this standardization competition increases between firms within the tourism sector. This footing warfare will lead to decrease price.The five porters force Analysis constancy competitor In the market industry four large companies are dominant (Kellogg, Nestl, MDD and Jordans). Its an oligopolistic situation (a small spot of sellers and a large number of applicants). The competition between the organizations is lavishly and intense because of the price principally. holy terror of a Substitution there are many substitutes because of private labelThreat of entry The cereal industry is oligopolistic, so is very difficult for some other firm to enter in this sector. If firm want to penetrate this market he has to have competitive prices, and has to make marketing communication and forwarding to attract consumersBargaining power of buyers the power of buyer is low in the cereal industry consumers dont have a deep impact.Bargaining power of suppliers the power of suppliers is low because the importance of the market shares of private labels. They do barely the products in cheaper prices. Suppliers ca n buy product independently.Source Adapted from Porter M (1998, cited by Johnson G al, 2008)Analysis of Kelloggs internal environment (internal strategy)The Kelloggs abide by chainSupport ActivitiesFirm infrastructureIn order to curb a good satisfaction level from its clients, Kellogg uses several service and the inbuilt organisation is flexible.Quality ControlFinance AccountingInformation system(internal communication) high levelKelloggs has an intranet to expose the information of the firmLegal service the righteousness concerning the output of the productLogistical support (restoration)Planning Provide a planning to clients and Anticipate customers needsHuman Resources ManagementThe company allows a dynamic of man resources management policy.For doing that well, Kellogg establish a model manage name is Kellogg patronage leaders model (KBLM).It is the base of everyone in Kellogg industry, it improves the competencies of apiece works and allow to progress in the compa ny. This model is one of the closely important competitive advantage, it allow adding value to the firm.Recruitment policyKellogg is looking at for talent doers to develop new products and give freedom to do innovation. It does recruitment on international dimension.TrainingKellogg establishes the standing coaching to help workers to improve future operations and profitability.Kellogg is developingplanforindividual career to resolve to the workers needs (new skills)The innovation is one of the most important sectors that Kellogg develops it gives time to worker just to think about innovation.Performance measureKellogg measuring effect and make feedback to add valueAdd valueKellogg motivates employees in swelled merit reward when they perform.Technology DevelopmentRD for productsThe innovation is a weaken of Kelloggs culture, it is the most important cereal heathcare companyThe development of products aimed at impact consumers health and nutrition needs.The development of pr oducts packaging to ameliorate the communication for consumer and his relieve (when he use the product)Innovation on the image of health cereal cereal for men target.Innovation the type of product(museli, cereal)Innovation to keep the iron in the cereal cultureInnovation to give notoriety and profile of the product The company has announced that it is testing the possibility of using lasers to engrave the companysname into corn flakes to let customers know they are eating a genuine Kellogs product(geek.com)Innovation in communication all around the worldProcurementTo achieve economies of scale, purchasing division negotiate with suppliers to obtain group rates to reduce reduce cost and save time on delivery.Inbound LogisticsKellogg calls the best suppliers and partners in term of cost efficiency, maintain the spirit of the products. The suppliers are responsible (deal with) all the tasks upstream.( packaging, manufacturing, transportation management services, logistics managemen t services and supplier management/procurement)the inbound logistic is automatic , evry part of the production is automated.OperationsKellogg has un structure for all operation system very flexible.Kellogg curing up On office in each country of the world. So Kellogg can manage the transformation between the raw material and the utmost productOutbound logisticsThe distribution of the products to consumers (end user) is doing via a multi-layers pedigree system.The different channel of distribution allows comforting the consumers during the purchase.(distribution on retail, hypermarket and supermarket in general)Marketing and sales exclusively the consumers are familiar with the Kelloggs brand and Kellogg cereal.Kellogg company make sponsorships locally to efflorescence brand awareness.Thank to that Kellogg cereal are famous in all around the world.Kelloggs cereal use sometime promotion to reduce the price and increase the purchase.Kellogghas managedtoestablish itselfinalmostallsupe rmarketsandhypermarketsin the worldServicesKelloggoffersseveralservicesthatcanenhancetheseproduct totheconsumer.Kellogg oblation outstanding customer services( promotion to attract people and to loyaty the consumer with a comparativecommunication programacross allbrandsfor adults and children,built around amini-consumerPrimary ActivitiesBenchmarkingTo do this benchmark we are going to take the Kelloggs human resources sector and we will compare with Nestl human resource (Nestl is the principal competitor).KelloggsNestlHR culture Goal add value thanks to innovation HR program Kellogg business leaders model Kellogg join the high ethical standards-Freedom in the post HR programPrinciplesofConduct Nestls business relationships between employees Communication is the principal factor of the HR policy. Equity between employees has to be respected. Give responsibility to employees Non freedom in the post plectron recruitment Kellogg is looking for talent workers Human Diversity attract and dedication future employees(long term contract) Recruitment on the personality and professional skills develop a long term relationship.Training and Development Trainee program ain development and team development Tainting program-Personal developmentPay receipts employee rewarding benefit adaptation of working hours Employees social security. wage level( low-level to superior) Equity Financial compensation allows motivating employees.Participation/employee relation/communication-Power of employees unions-participation in important decisions. Every employee has got a personal responsibility in the company.-Importance of employee association.