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

Strategics Management - Research Paper ExampleThe following table presents gussy up analysis of Kellogg in the competitive environment Considering the Strength, Kellogg has its presence in 17 countries and its product is being marketplaceed crosswise the globe. Since the connection has established esteemed international operations, it place enjoy the cost and tax incentives of the other countries. In addition, the company also displays distinguished fiscal credibility and its shares are listed on one of the biggest stock exchanges of the world. A sound financial outlook always attracts investors to invest in the operations of an organization. Kellogg can easily heave 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 erect finance for the expansion of its operation is through debt. Banks and financial institutions are likely to sanctions credit facilities to companies 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 line of achievement of time. Its production line still contains items that were originally developed over 50 years ago. Regarding the threats, the company faces untrained competition from several firms in the food for thought industry 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 post 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 pressure on the companys margin and forcing them to sales event their products on lower prices. In the recent past, the company has started incurri ng expenditure in making its food 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 northbound America, and since the recent demographic studies suggests that people are becoming more diet conscious due to the paramount obesity related disease, Kelloggs investment in the modified and nutrition enriched food products is likely to reaps irresponsible results. (b) Porters five forces model is an effective 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 fit in to the model is the entry of new competitors into the market. New entrants might b e able to capture some of the market share of Kellogg and will adversely affect the profitability. With the implementation of sophisticated data gathering software, Kellogg can disgust 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