The Kellogg Company

2731 Words Jul 25th, 2010 11 Pages
The Kellogg Company Pestle Analysis

The Kellogg Company Pestle Analysis
Glossary Page

Introduction 3
Pestle 3
Political Influences 4
Economic Influences 5
Socio-Cultural Influences 7
Technology Influences 8
Legal Influences 9
Ethical Influences 11
References 12 The Kellogg Company Pestle Analysis

Introduction
Will Keith (W.K.) Kellogg was born April 7, 1860. In 1876 W.K. and his brother Dr John Harvey Kellogg, accidentally discovered the process of creating flaked cereal while experimenting with shredded wheat cereal. While experimenting with different ways to cook and crush wheat to make it more palatable without losing its goodness, they inadvertently ran a
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The production lines in competitive companies could cause Kellogg’s to reduce prices, increase capital, marketing or other expenditures, or lose category share, any of which could have a materialistic harmful effect on their business and financial results. Category share and growth could also be adversely impacted if Kellogg’s are not successful in introducing new products.
Agricultural produce, including corn, wheat, soybean oil, sugar and cocoa, are the principal raw materials used in Kellogg’s products. Carton board, corrugated, and plastic are the principal packaging materials used by the company. The cost of such products may fluctuate widely due to government policy and regulation, weather conditions, climate change or other unforeseen circumstances. To the extent that any of the previous factors mentioned, affect the prices of such products and Kellogg’s have been unable to increase their prices or sufficiently hedge against such changes in prices in a manner that offsets such changes. The results of Kellogg’s operations could be materially and adversely affected. In addition, Kellogg’s use derivatives to guard themselves against price risk associated with forecasted purchases of raw materials.
The cost of fuel may fluctuate widely due to economic and political conditions, government policy and regulation, war, or other unforeseen circumstances which could have a material adverse effect on their consolidated operating results or financial

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