Kellogg Co.: A Case Study

The world’s biggest producers of cereals Kellogg Co. announced that the profits of the company fell to 16 percent as the sales of the cereal started to slack (Jennifer Bowman, 2014). Kellogg is an organization which provides cereals containing variety of nutrition for a quick breakfast for consumers. They have produced many types of cereals such as Special K, Corn Flakes and Rise Krispies to target different markets. The reason for the drop of sales was predicted to be the influence in environmental initiatives. Kellogg started losing the top position of sales by their competitors which produced healthier option for breakfast. In order for Kellogg to get back into the business they need to carry out further research in external initiatives.

After the competitor General Mills started the trend of saving the environment Kellogg started to reduce the production of greenhouse gas emission and energy consumption (Ben Rooney 2014). In order for Kellogg to stay in a race with their competitors it has to follow the trend of a leading organization. The sales are falling for Kellogg because they were not quick enough for new changes of the society. Society habits are changing as consumers are more cautious about the importance of their health and the environment. Once an organization fails to fulfill the necessity of a market demand they will gain bad reputation from its consumers which leads to a downfall of sales. In the past Kellogg came up with an idea of implementing a dietary cereal Special K which was a great hit all over the world for both adults and children. As time passed Kellogg did not react quickly to follow the upcoming trends and consumers started to change their eating habits to healthier dietary options consuming more yogurts and salads which eventually led Kellogg to decrease in sales. Organizations are the center where changes take place for the social environment therefore Kellogg should start taking risk for new changes to get back in track. In order for Kellogg to take actions they have to be conscious of social composition for employees and customers to

Planning is an essential part of future development; it helps business to set goals for the future. It is important for all the mangers in the managerial level (Stagner, 1969). Applying planning to managers in Kellogg; Kellogg has to plan for potential problems that might occur in the future. Managers have to carry out their planning by testing out demographic analysis to check on age groups, genders and income level to see which group of consumers has the purchasing power; this would help managers in retrieving more demographic information from the society. Another way to attract customers is through advertisements and promotions. Managers are encouraged to use more on advertising expenditures which involves in attracting more children using the Kellogg tiger mascot and as well as the nutrition facts to attract the parents. Social environment of an organization can have an impact on the type of employees it attracts. Employees with higher educational level bring in higher expectations from manager in having better future planning. In order to attract these high standards, managers are responsible in providing good working conditions, flexible working hours and higher income which all falls under good planning of a