Kellogg Company Operational Planning
Kellogg Company SWOT Analysis and
Strategic/Operational Planning
Susan L. Fredricks
MGT/521 (MBA 1EC7X7)
10/20/2014
Karri Perez
Kellogg Company SWOT Analysis and
Strategic/Operational Planning Company Overview As of 2013, Kellogg Company reached 14.8 billion in sales and is the world’s leading Cereal Company; second largest producer of cookies, crackers, and savory snacks; and a leading North American frozen foods company. Kellogg Company. (2014). Retrieved from http://www.kelloggcompany.com. Kellogg was established in 1906 by Will Keith Kellogg. The Company headquarters is in Battle Creek, Michigan and according to "The Statistics Portal" (2014), "there were 30,277 ” employees at Kellogg. Kellogg produces 1,600 foods in 18 countries and has sold their products in more than 180 companies worldwide. Kellogg’s distinguish brands include Corn Flakes®, Kashi® Pringles®, Eggo®, Pop-Tarts®, Special-K® and Pringles®.
Second Quarter Earnings / Strategic Plan – “Project K”
Reported earnings for the second quarter 2014 were $295 million. However, sales and operating growth was reported lower than expected due to the difficult environment. ("Press Release Kellogg Company Reports Second-Quarter Earnings Per Share Broadly In-Line With Expectations And Provides Revised Guidance ", 2014). In fiscal year 2013 Kellogg implemented the execution of the four-year Project K Efficiency program, which incurred $208 million in expenditures. Project K, Kellogg Co. plans to rebuild brands in four key areas: cereal, snacks, frozen foods and emerging markets. During 2014, the program plans to close several plants (Cookie plant in Charlotte, N.C, ready-to-eat cereal plant in London, Ontario and Charmhaven, Australia snack plant by end of 2014). The program also includes expansion projects such as the snacks facility in Rayong, Thailand in early 2015. Project K’s planned outcome is the eradication of seven percent of the Company’s global personnel during a four-year time
Strategic/Operational Planning
Susan L. Fredricks
MGT/521 (MBA 1EC7X7)
10/20/2014
Karri Perez
Kellogg Company SWOT Analysis and
Strategic/Operational Planning Company Overview As of 2013, Kellogg Company reached 14.8 billion in sales and is the world’s leading Cereal Company; second largest producer of cookies, crackers, and savory snacks; and a leading North American frozen foods company. Kellogg Company. (2014). Retrieved from http://www.kelloggcompany.com. Kellogg was established in 1906 by Will Keith Kellogg. The Company headquarters is in Battle Creek, Michigan and according to "The Statistics Portal" (2014), "there were 30,277 ” employees at Kellogg. Kellogg produces 1,600 foods in 18 countries and has sold their products in more than 180 companies worldwide. Kellogg’s distinguish brands include Corn Flakes®, Kashi® Pringles®, Eggo®, Pop-Tarts®, Special-K® and Pringles®.
Second Quarter Earnings / Strategic Plan – “Project K”
Reported earnings for the second quarter 2014 were $295 million. However, sales and operating growth was reported lower than expected due to the difficult environment. ("Press Release Kellogg Company Reports Second-Quarter Earnings Per Share Broadly In-Line With Expectations And Provides Revised Guidance ", 2014). In fiscal year 2013 Kellogg implemented the execution of the four-year Project K Efficiency program, which incurred $208 million in expenditures. Project K, Kellogg Co. plans to rebuild brands in four key areas: cereal, snacks, frozen foods and emerging markets. During 2014, the program plans to close several plants (Cookie plant in Charlotte, N.C, ready-to-eat cereal plant in London, Ontario and Charmhaven, Australia snack plant by end of 2014). The program also includes expansion projects such as the snacks facility in Rayong, Thailand in early 2015. Project K’s planned outcome is the eradication of seven percent of the Company’s global personnel during a four-year time
References: Kellogg Company. (2014). Retrieved from http://www.kelloggcompany.com ("Kellogg Company Announces Plans To Open North America Global Business Services (gbs) Service Center In Grand Rapids, Mich.", 2014). Nunes, K. (2013, November). Kellogg refocusing on efficiency to improve earnings. Food Business News "Press Release Kellogg Company Reports Second-Quarter Earnings Per Share Broadly In-Line With Expectations And Provides Revised Guidance ", 2014 Schroeder, E. (2013, December). Kellog To Close Two Plants, Expand Another. Food Business News Wagner, B., & Monk, E The Statistics Portal. (2014). Retrieved from http://www.statista.com Dunn, S Part 1, Introduction to Managerial Finance, n/d. Retrieved from Part 1, Introduction to Managerial Finance, n/d, retrieved from http://wps.aw.com/wps/media/objects/222/227412/ebook/ch01/chapter01.pdf Robbins, Stephen P., Mary Coulter (12/2010) Tice, Carol (February 2007), Contributor, Entrepreneur, Retrieved from http://www.entrepreneur.com/article/173522