Internal and external analysis of Kelloggs

Internal and external synopsis of KelloggsIn this assignment Im going to make an external analysis and an inner analysis of the Kelloggs company. Im going to choose four tools to make the all analysis. For the external analysis I pass on do PESTEL and Porters five force models and for the internal analysis I will do the assess chain and a benchmarking on Cereal SBUPresentation of the organizationKellogg companionship is the United States largest metric grain-Maker.In 1898, Will Keith and canful Harvey give birth to the famous breakfast cereal Kelloggs corn Flakes. Thanks to the success of the harvests Will Keith create in 1906 the Battle Creek Toasted Corn Flake Company. Kellogg is the leading producer of breakfast cereals in the world. It condenses places in 18 countries and sells it ingatherings in more than 180 countries.Between 1938 and the present day Kellogg opened manufacturing plants in the UK, Canada, Australia, Latin America and Asia.Kellogg produce a wide range o f cereal product including the well-know brand of Kelloggs corn flakes, rice krispies, special K , fruit n fibre, as well as the nuti-grain cereal bars.The philosophy was improved diet leads to improved healthKellogg company mission statementKellogg is a Global Company Committed to Building Long-Term Growth in Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value analysis of Kelloggs external environmentAnalysis of Macro-environment influences through the PESTEL modelThe headquarter of Kellogg company is currently base in Battle Creek in the Michigan. I will base my PESTEL analysis in the country of the USAPolitical Reforms for the problem of obesity in USA (wide problem)US focus on cereal products in the level of 17% of the food market(2000)Economical The deterioration of general economic activity and the contraction of the food market curb not been without consequences for the food intentness .Faced with fina ncial difficulties and difficulties of access People doesnt be possessed of money to buy expressive food because of the decrease of salary.High unemployment rate 9,00%( january 2011)GDP in 200914266milliards of $Curent adroit 6% of GDPIncrease of the inflation rate1,5%Decrease of the money , low rate of the dollarHard competition between the breakfast and nosh brandsDecrease of all the sales in cereal market (began in 2005 with less 0, 4%)Social Population of USA 312.061.000 mountainincrease of obesity rate so the cereal market develop the sector of light foodLack of time to take a breakfast American people would like some easy to transport at work or at school to eat.The increase in the Third Age population conference (due to better living conditions and better health care) will decrease the sales of Kellogg children product and down growth for adult products.Importance of the health, safetyPeople sine qua non to be inform on what people itTechnological grounding on the cer eal market different package, small bar (snack), resealable package (or close package) cycle packageInnovation in communication and advertising levelScientific progress on the health- diet foodIncrease the cost of RDKelloggs did a intercellular substance Sustainability ingredientsEnvironmental Development of the biologic and natural foodDevelopment of ecologic packaging, and recyclable packaging to avoid the wasteLegal environnemental charterHealth claims is enough more prevalent with the increase of the power 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 global customers. (Standardize the food, the drink, the activities). Because of this standardization competition increases between firms within the tourism sector. This price war will lead to decrease price.The five porters force AnalysisIndustry competitor In the market i ndustry four large companies are dominant (Kellogg, Nestl, MDD and Jordans). Its an oligopolistic situation (a small physique of sellers and a large number of applicants). The competition between the organizations is high and intense because of the price principally.Threat of a Substitution there are many substitutes because of private labelThreat of accession The cereal industry is oligopolistic, so is very difficult for other firm to enter in this sector. If firm want to penetrate this market he has to have hawkish prices, and has to make marketing communication and promotion 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 exactly the products in cheaper prices. Suppliers can buy product independently.Source Adapted from Porter M (1998, cited by Johnson G al, 2008)Ana lysis of Kelloggs internal environment (internal strategy)The Kelloggs judge chainSupport ActivitiesFirm infrastructureIn order to maintain a good satisfaction level from its clients, Kellogg uses several(prenominal) services and the entire organisation is flexible.Quality ControlFinance Accounting selective information constitution(internal communication) high levelKelloggs has an intranet to expose the information of the firmLegal service the law concerning the production of the productLogistical support (restoration)Planning Provide a planning to clients and Anticipate customers needsHuman Resources ManagementThe company allows a dynamic of valet de chambre resources management policy.For doing that well, Kellogg establish a model wish gain is Kellogg business leaders model (KBLM).It is the base of everyone in Kellogg industry, it improves the competencies of each works and allow to progress in the company. This model is one of the about important competitive advantage, it allow adding value to the firm.Recruitment policyKellogg is looking for talent workers to develop new products and give freedom to do innovation. It does recruitment on international dimension. developKellogg establishes the standing coaching to help workers to improve future operations and profitability.Kellogg is developingplanforindividual career to respond 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 performance and make feedback to add valueAdd valueKellogg motivates employees in giving merit reward when they perform.Technology DevelopmentRD for productsThe innovation is a part of Kelloggs culture, it is the most important cereal heathcare companyThe outgrowth of products aimed at meeting consumers health and nutrition needs.The development of products packaging to ameliorate the communication for consumer and his comfort (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 visibility of the product The company has announced that it is testing the possibility of using lasers to etch the companysname into corn flakes to let customers know they are eating a genuine Kellogs product(geek.com)Innovation in communication all virtually the worldProcurementTo achieve economies of scale, purchasing division negotiate with suppliers to obtain group rates to thin out reduce cost and save time on delivery.Inbound LogisticsKellogg calls the best suppliers and partners in term of cost efficiency, maintain the quality of the products. The suppliers are responsible (deal with) all the tasks upstream.( packaging, manufacturing, transfer of training management services, logistics management 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 set up On office in each country of the world. So Kellogg can manage the transformation between the raw real(a) and the final productOutbound logisticsThe distribution of the products to consumers (end user) is doing via a multi-layers channel system.The different channel of distribution allows comforting the consumers during the purchase.(distribution on retail, hypermarket and supermarket in general)Marketing and sales only the consumers are familiar with the Kelloggs brand and Kellogg cereal.Kellogg company make sponsorships locally to height 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 itselfinalmostallsupermarketsandhypermarketsin the worldServicesKelloggoffersseveralservicesthatcanenhancethes eproduct totheconsumer.Kellogg offering outstanding customer services( promotion to attract people and to loyaty the consumer with a relationalcommunication program crossways 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 connect the high ethical standards-Freedom in the post HR programPrinciplesofConduct Nestls business relationships between employees Communication is the principal factor of the HR policy. justice between employees has to be respected. Give responsibility to employees Non freedom in the postSelection recruitment Kellogg is looking for talent workers Human Diversity attract and committedness future employees(long term contract) Recruitment on the personal ity and professional skills develop a long term relationship.Training and Development Trainee program Personal development and team development Tainting program-Personal developmentPay Benefit employee rewarding benefit adaptation of working hours Employees social security. wage level( inferior 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.