Business Analysis Kelloggs Company

Topics: Mutual fund, Will Keith Kellogg, John Harvey Kellogg Pages: 4 (1240 words) Published: October 21, 2012
Kellogg Company Environment
Denjah Harte
September 10, 2012
Dr. John Grabarczyk

Kellogg Company Environment
Analyzing a company is one function a mutual fund manager performs when deciding to invest. The organization should conform to a strategic goal, evaluate new product developments, and have an increased market potential. Kellogg Company is a multinational, diversified, food manufacturing company producing cereals, snacks, and other foods. A mutual fund manager would recommend investing in the Kellogg Company based on long-term profitability and financial stability. Originally named The Battle Creek Toasted Corn Flake Company in 1906, in 1922 W.K. Kellogg renamed it Kellogg Company. According to Kellogg Company (2012), “Kellogg Company is the world’s leading producer of cereal, second largest producer of cookies and crackers and - through the May 2012 acquisition of the iconic Pringles business – the world’s second largest savory snacks company. In addition, Kellogg is a leading producer of frozen foods” (para. 1). An analysis of Kellogg Company reveals strengths, weakness, opportunities, and threats that single out some key issues within the company. As a company, Kellogg has several strengths: it is a widely known brand name, the advertising campaign slogans are famous, and the company holds the largest global market share for pre-sweetened cereal. Every company has weaknesses as well - Kellogg has not developed many new cereal lines, their market share in the United States is declining, and the pricing approach is out-of-date. Kellogg Company has grown in the international market, making strides by acquiring the Pringles Brand in May 2012 (Kellogg Company News Room: In the News, 2012). Kellogg Company expanded to Europe, South America, and Asia Pacific, observing a slow growth to keep expenses from exceeding profits. Kellogg Company must lower prices to stay competitive and cost-effective in the core areas,...
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