Khalil

The purpose of this study is to determine the effectiveness of the Kellogg Companys business strategy. The gilds financial results from 2003 through 2005 were canvas thoroughly and compared to an sedulousness benchmark that was comprised of Kelloggs closest competitors. The benchmark consisted of General Mills Inc., Kraft Foods Inc., and PepsiCo. These companies compete head-to-head with Kellogg in supermarkets both domestically and internationally. Kellogg has been extremely successful in viscid to the basics of the companys strategy. Since the inception of the company in 1898, Kellogg has focused on manufacturing and selling cereal. Kelloggs strategy has incessantly been to differentiate their products through effective marketing. Kelloggs countless trademarks and characters, such as Tony the Tiger and Snap! Crackle! Pop!, take a crap helped build brand equity through establishing high takes of node loyalty. Three factors were used to judge the effectiveness of the companys strategy: market capitalization, net profit margins, and revenue growth. Kellogg succeeded in passing the necessary criteria for success.

Kelloggs net profit margins and commingle annual growth rates were in truth favorable compared to the industry benchmark. If Kellogg can maintain the companys high level of efficiency while continuing to focus on growing cereal gross sales, it will continue to be a very healthy company for investors. The projected five-year CAGR from 2003-2008 for domestic cereal sales is expected to 1%. Since cereal accounts for 53% of Kelloggs revenue, the company must seek out other avenues for growth. For the future, in monastic severalize to grow and compete, the company must focus on expanding save into international markets. If you want to get a full essay, order it on our website: Orderessay

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