Strategics Management Research Paper Example | Topics and Well Written Essays - 1500 words

Strategics Management - Research Paper ExampleThe following table presents SWOT analysis of Kellogg in the competitive environment Considering the Strength, Kellogg has its figurehead in 17 countries and its product is being marketed across the globe. Since the company has established esteemed international operations, it evoke enjoy the cost and tax incentives of the other countries. In addition, the company also displays distinguished financial credibility and its shares are listed on one of the biggest stock exchanges of the world. A sound financial outlook always attracts sitors to invest in the operations of an organization. Kellogg cannister easily raise capital by issuing new shares in the stock market and it can certainly be expected that the issue would be completely subscribed. Another source through which the company can raise finance for the expansion of its operation is through debt. Banks and financial institutions are likely to sanctions credit facilities to compa nies having credible financial outlook. The only weakness that is apparent from the ongoing operations of the company is that Kellogg has not updated its product line with the passing play of time. Its production line still contains items that were originally developed over 50 years ago. Regarding the threats, the company faces fierce competition from several firms in the pabulum attention who possess the volume and potential to outcast the company by introducing more sophisticated products and ingenious production strategies. Apart from that, the company also faces threats from store cross off products which are cheaper to sell for the retailers. In addition to the discussed, it appears that the company has placed too much reliance on the discount merchandisers. These giant stores have the potential of exerting rack on the companys margin and forcing them to sale their products on lower prices. In the recent past, the company has started incurring expenditure in making its foo d items more nutritious and healthy. Kellogg is one of the first one to use the oil to lower levels of trans fat and unsaturated fats in its products. This venture can prove to be full of opportunities for the company. The company earns 66% of its revenue from the North America, and since the recent demographic studies suggests that people are becoming more diet conscious due to the rife obesity related disease, Kelloggs investment in the modified and nutrition enriched food products is likely to reaps positive results. (b) Porters five forces model is an trenchant tool in exploring the competitive forces of the environment in which the organization operates. It allows the business to critically analyze its current business strategy and formulate one which can allow it to achieve a competitive position in the market. The first competitive force according to the model is the entry of new competitors into the market. New entrants big businessman be able to capture some of the marke t share of Kellogg and will adversely affect the profitability. With the implementation of sophisticated data gathering software, Kellogg can drive back this threat to its business. The sales department can maintain a database of the orders which can significantly assist in identifying which product is most popular among the customers. This information can