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Kellogg

In: Business and Management

Submitted By kibta
Words 3760
Pages 16
Kellogg – 2005

Henry Beam, Western Michigan University
Forest David, Francis Marion University

A. Case Abstract

This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Kellogg is headquartered in Battle Creek, Michigan, where the company was started in 1906. Kellogg’s common stock is traded on the New York Stock Exchange under the symbol K. Kellogg is the world’s largest producer of ready-to-eat cereals and a leading producer of cookies and snacks, also known as convenience foods. Kellogg manufactures products in 17 countries and markets them in over 180 countries. Kellogg has a long history of international operations. It started marketing its products in Canada, England, and Australia before World War II and then entered the Latin American, European, and Asian markets. Despite its emphasis on international operations, Kellogg receives about two-thirds of its sales and pre-tax income from North America. Kellogg’s primary competition in ready-to-eat cereals comes from General Mills, headquartered in Minneapolis, Minnesota. Kellogg also competes with the Post unit of Kraft Foods and the Quaker Oats unit of PepsiCo in the ready-to-eat cereal market. General Mills’ Cheerios is the world’s best selling cereal. When Kellogg’s market share briefly fell behind that of General Mills in 2001, Kellogg responded quickly to regain the lead. Kellogg’s primary competitors in convenience foods are the Frito-Lay unit of PepsiCo and the Nabisco unit of Kraft Foods. Frito-Lay is the largest maker of salty snacks (Lay’s potato chips, Doritos) while Nabisco is the...

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