Kellogg's Swot Analysis

Introduction

Kellogg Company of Great Britain Ltd

Kellogg Company of Great Britain Ltd is a wholly-owned subsidiary of Kellogg Company of Michigan, of the US, and remains the dominant brand in the UK breakfast cereals market. The company has a large portfolio of well-established cereal brands, seven of which were in the top ten RTE (ready to eat) cereal brands in the grocery trade in 2006. Kellogg's operates mainly in the RTE sector, with a range of 34 products, and is most famous for its Corn Flakes product. Other popular brands include Frosties, Crunchy Nut Corn Flakes, Rice Krispies, Special K, Coco Pops, Bran Flakes, All-Bran, Frosted Wheat and Fruit `n Fibre.

A few years ago, Kellogg Company changed the way it operated its business (Annual Report 2006). They adopted a simple strategy that focused on three main priorities. They also adopted a business model that provided for realistic targets and the investment necessary to achieve those targets over the long term. Finally, they incorporated three operating principles that drive profitable revenue growth, keep them focused on the generation of cash, and reinforce the importance of having the right people in the right jobs.

Main Priorities

Ð'„Ð'« Grow the Cereal Business

Ð'„Ð'« Expand the Snacks Business

Ð'„Ð'« Pursue Selected Growth Opportunities

These three main priorities are very broad and the industry as a whole needs to be analysed to find the best possible way for these priorities to be fulfilled in the best possible way for the business.

S.W.O.T. Analysis

A S.W.O.T analysis is a scan of the internal and external environment and is an important part of the strategic planning process. Environmental factors internal to the company are classified as Strengths and Weaknesses and external as Opportunities or Threats.

Strengths

The company has many resources and capabilities that will give them competitive advantages, these are:-

Ð'„Ð'« Good solid brand names

Ð'„Ð'« Reliable reputation

Ð'„Ð'« History and expertise

Ð'„Ð'« Global

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