KELLOGG'S STRATEGIC PLANNING

Kellogg's Strategic Planning

Kellogg's Strategic Planning

Key Terms

Kellogg's

Mission Statement

Kellogg's mission incorporates creating growth opportunities and generating profits in the long term that can enhance its position as a global leader by offering quality nutritious food.

Visions

The vision of the company includes the entire stakeholders of the company, focusing on sustainable growth and utilizing the competencies of the company to contribute toward social responsibility.

Objectives

Kellogg's aims to focus on activities pertaining to the consumers and general public by supporting their physical activities and offering consumers healthy and quality food in the form of packaged cereals.

Goals

Kellogg's has goals of sustaining its position as a market leader in the global breakfast industry and maximizing its profits.

Core Competence

The core competencies of Kellogg's include its R&D, innovation, technology, human resource and marketing.

Question 1

Question 2

One of the common problems of strategic planning is short-term orientation. This can lead to short-term profits and may cause the company significant losses in the long-term. Kellogg's need to utilize its competencies and develop innovative products that are customized according to the changing needs of the market. This may include new tastes, features or packaging (Nestle 2007, Pp. 441-486). The company should also consider looking at diversified options, as the industry has reached its maturity.

Question 3

BCG matrix is a tool for strategic analysis and planning in marketing. It was created by the founder of Boston Consulting Group Bruce D. Hendersenom to analyze the relevance of the company's products, based on their position in the market regarding the growth of market, and occupied by the company selected for the analysis of market share (Parasuraman 2006, Pp. 613-638). It builds on the two concepts: the product life cycle (vertical axis) and the effect of scale or learning curve (horizontal axis).

Stars

High sales growth and high market share: Market share should be maintained and increased. "Stars" bring a very large income. However, despite the attractiveness of the product, its net cash flow is low, as it requires substantial investment to ensure a high growth rate.

Cash Cows

High market share but low growth rate of sales: It is essential to protect and maximize control of the "Cows". Their appeal is because they do not require additional investments and provide themselves with a good cash income. Proceeds from sales can be directed to the development of "problem children" and to support the "Stars."

Dogs

The growth rate is low along with low market share: the product is generally a low level of profitability and requires a lot of attention from the manager. Organizations need to get rid of “Dogs" (Mattern 2011, Pp. 5-32).

Question Mark

Low market share but high growth rate: Question marks should be studied as they can become stars as well as dogs. If there is a possibility of transferring them into stars, then organizations need to invest in them.

Fruit Winder

As Kellogg's launched Fruit Winder, it will initially be in the position of question marks. The position of Fruit Winder will depend as its sales and market position unfolds in the ...