Friday, May 3, 2019

Business Strategy and Policy Assignment Example | Topics and Well Written Essays - 1000 words

Business Strategy and Policy - Assignment ExampleKellogg uses fitter ways of producing its products. Kellogg has tried using genetically modified rough materials for producing the goods. The company has tried to eliminate raw materials that have high fat content. Health problems are increasing in alarming rate. People are suffering from problems related to obesity. In such a scenario, Kelloggs use of healthier raw materials want low fat oil would only lead to increase in demand for their products (Aaker, 2009).Kellogg did not lodge in any effort in developing new products. They have continuously carried their business with the same contrast of products. There was no modification in products and it withal did not focus on matching its products with the changing customer needs and requirements. The taste and preferences of consumers were not considered while making any decisions regarding product development. There was also no diversification plans in the business. This increase d little terrors from competitors. They could develop new products and capture Kelloggs market. (Fleisher, 2001).Kellogg may mettle a threat due to fall in its sales figures. This can be due to Kelloggs inability to influence prices of its products. In the initial years, when Kellogg used small grocery stores for distributing the products, the company enjoyed significant situation in setting its own price. But with the growth of the company, it has started transacting with large retailers. Such retailers do not kick Kellogg to negotiate prices and as a result Kellogg sets its prices according to the needs of the distributor (Fleisher, 2001).Threats related to new entree Kellogg has a well recognized brand name. They have acquired this position by continuously maintaining product quality. The threat related to new entries is thus not very high. The company has the advantage of using economies of scale. The standards set by the company globally cannot be matched by a new entrant instantly.Competitive

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