Thursday, February 16, 2012

Kellogg's History and External Environment


Introduction to Kellogg’s

W.K. Kellogg founded Kellogg Company in 1906 in Battle Creek, Michigan. Back then, there were only 44 employees, but today they sell their products in more than 180 countries and manufacture in 18 countries across the globe. Mr. Kellogg had a firm commitment to nutrition, health and quality. These elements are the drivers for their mission statement, which is “to drive sustainable growth through the power of our people and brands by better serving the needs of our consumers, customers and communities.” Kellogg’s vision is “to be the food company of choice.” Kellogg Company has been a long-time leader in industry, innovation and marketing.

Kellogg’s has been committed to being the best in each category they compete and it has paid off. Kellogg Company is the world’s leader in producing cereal, cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. Their brands include Kellogg’s®, Keebler®, Pop-Tarts®, Eggo®, Cheez-It®, All-Bran®, Mini-Wheats®, Nutri-Grain®, Rice Krispies®, Special K®, Chips Deluxe®, Famous Amos®, Sandies®, Austin®, Club®, Murray®, Kashi®, Bear Naked®, Morningstar Farms®, Gardenburger® and Stretch Island®.

Kellogg Company’s competitive advantage is their employees. They provide an environment in which each of their employees can succeed. Mr. Kellogg knew when he started his company that employees were key and that success would not come if they did not have successful employees.


Kellogg’s External Environment

First, I would just like to say I will only be discussing cereal, since this was Kellogg’s first product. Kellogg’s constantly needs to be watching its external environment. They need to be doing some external scanning, which is looking at what their competitors are doing. Their competitors include General Mills, Kashi, Cascadian Farm’s and store brand cereals. Their biggest of their competitors is General Mills. Kellogg’s does not really have a threat of new entrants because cereal is an established product and Kellogg’s is a well-established brand. Their customers, who are wholesalers, hold a lot of power because they decide if they will sell Kellogg’s cereals. However, Kellogg’s holds the power with their farmers, whom they have contracts with. There is a threat of substitute products because consumers are eating healthier foods. Consumers may switch to an organic cereal company such as Cascadian Farms, who makes similar cereals, but they are made of organic products. By looking at their website, it seems Kellogg Company has done a good job of watching their external environment. 

No comments:

Post a Comment