Case Study Kellogg

The ready-to-eat (RTE) sector has increased sales and therefore have given the Breakfast cereals market an advantage to have a higher market share of 4.2% in 2013. The emphasis is more to the value and the convenience of cereals rather than the quality. However people are starting to be more heath conscious and are going to the higher nutritional brands which tend to be the well-known ones such as Kellogg 's, Weetabix and Nestle.

The cereal market is a booming industry. It has been around for over one hundred years and continues to attract millions of customers’ everyday. The market structure of the cereal industry is an Oligopoly. This is because there are four large firms, Kellogg, General Mills, Post, and Quaker Oats, which dominate the industry.

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

1) The Big Three firms, Kellogg, General Mills, and Philip Morris, formed practically an oligopoly in the RTE cereal market. Their price and cost levels moved in lockstep, following signals sent mostly by the biggest player, Kellogg, while their tactics could be used against outside competition, as suggested in the scenario below. Although RTE cereal is a basic food item and production technology stabilized for about half century, the industry had effective barriers to entry. The competition between incumbents was friendly while most of the inputs came from a perfectly competitive market, agriculture. Major customers, the food stores, were coopted in perpetuating barriers to entry in the form of shelf space “slotting”.

In this assignment, I will go over the different items related to the disaster recovery plan. I will go over the purpose of the plan, explain the key elements that go into a plan, the methods of testing the plan, and why we test the plan. All while explaining why the disaster recovery plan is so critical to businesses in the event of an emergency.

This monopolistic competition market structure has a positive effect on Kudler because it allows Kudler and their speciality foods to carve out a niche that the competition will find it hard to enter. Kudler’s market strategy (locations and unique products) should be very effective in keeping out potential competitors and establish a large barrier to competitor entry. Since Kudler’s stores are located in areas with limited populations the ability of competitors to gain entry into their market is limited. Since competitors cannot enter their markets, Kudler should experience long-term profitability providing they keep their customers happy.

OMG Active Cereal has two major competitors- Uncle Tobys and Kellogg’s. Accounting to an online research

Kellogg’s is highly a profile company which is hugely known not only in the UK but in the world at large. It is one of the largest breakfast companies in the word, not only that but it is also financially it is a stably and well organised company. Kellogg’s profits have been stable if not increasing for the better from what it was 5 years ago.

Competition: * A big emphasis on reducing consumer price with discount offers.We have another 20 competitor cereal company cross Canada as well. Such as: Weetabix of Canada, Kraft

A continuity of operations and business resiliency plan is especially useful in times of uncertainty, as they provide a direction in complex environments. This part of the plan is designed to prepare businesses for dramatic and rapid changes caused by an terrorist attack. With assistance from emergency management planners, Metropolis’ businesses can assess current continuity plans and develop an economic resilience risk mitigation strategy as part of a broader regional continuity plan that includes actions to address business continuity challenges. Additionally, Metropolis can develop a strategy for expanded outreach and awareness for area businesses on regional resilience that covers issues of particular concern to businesses regarding terrorism.

General Mills competes in a dynamic environment. Some of their competitors are Kellogg’s in the cereal segment. Cereal was a product that used to be the number one election for breakfast in American. As time and new knowledge evolved, consciousness about products with less sugar or gluten free arose making the cereal industry tumble. Products like protein bars, Greek yogurts, and even fast food are the new options to start the date, gaining market share over the cereal industry.

Disasters have become an inevitable part of businesses and organizations as well. They not only have a major effect on business and organizational continuity; they also result to an overhaul in organizational operational mechanisms (Awasthy, 2009). It is for this reason that many organizations and business resort to preparing business continuity plans and disaster recovery plans that will facilitate better disaster management in future. Effective disaster recovery plans are important to every business and organization (Thejendra, 2008).

Disaster Recovery Planning is the critical factor that can prevent headaches or nightmares experienced by an organization in times of disaster. Having a disaster recovery plan marks the difference between organizations that can successfully manage crises with minimal cost, effort and with maximum speed, and those organizations that cannot. By having back-up plans, not only for equipment and network recovery, but also detailed disaster recovery plans that precisely outline what steps each person involved in recovery efforts should undertake, an organization can improve their recovery time and minimize the disrupted time for their normal business functions. Thus it is essential that disaster recovery plans are carefully laid

The objective of this study was to develop a strategic contingency planning model to be used to fully incorporate emergency management and business continuity into organization structures. (For the purpose of this study, Emergency Management and Business Continuity were collectively referred to as “contingency planning.”) Presently, contingency planning is mainly done on an operational or tactical level. Current thinking suggests that contingency planning should be an active part of organizations’ overall strategic planning processes as well. Organizations will ultimately be better prepared for future disasters and crises.

General Mills, as one of the Big Three companies that focused on diversification of consumer goods on cereal division, restaurant chains and packaged consumer foods. In 1994, the cereal industry was profitable and had been one of the most concentrated industries overall historically, and the big Three company had a dominant position in this industry. However, the problem was although the high profitability attracted fewer entry company due to the high entry barrier restrained by joint monopoly of the Big Three, they were facing the threat of private label companies which grew fast in market share by sales and volume. Therefore, what is General Mills strategy to increase revenue while dealing with the threat of private labels. This is a critical issue because General Mills need measure the trade-offs among strategies, and this determines whether General Mills would still be one of the top players in terms of market shares in the industry.