Case Study Kellogg's Internal And External Environment

ENVIORNMENT

Kellogg is a company with great control over its internal and external environment. The following table shows the of Kellogg’s environment.

Internal environment

Kellogg`s has its own staff of senior organizational leaders, with a high autonomy in their domain, of a 22 person Senior Management Team, 46 next level key members. To carry out the performance appraisals, to build employees competencies, to manage the team, they have high autonomy, as mentioned above. Organizational structure, management style, the behavior of individuals is all a part of internal environment of the organization. The employees are evaluated based on their performance, using 360 degree approach, and rated by the supervisors. 98 percent of employees are

It comprises several sectors that contain similar elements. Socio-cultural, technology, political, economic and financial factors can affect the organization. Competitors are also a part of the external environment. The organization needs to come up with new strategies to cope with the competitors in the competitive market. As people now-a-days find busy with themselves, they are being adaptive to the readymade and fast food culture now, Kellogg`s has a bright opportunity here to make a real impact. We can consider this as one of the social factors affecting Kellogg’s. In holidays, people generally find themselves free in the home, or go out for some tourist vacations. These ecological factors might affect organization, as the changes in sales can be observed. And moreover, people want some food which will be readily available within minutes, in these situations. The company has adapted to the changes like these, and come up with new strategies, and made intensive promotions to attract these customers. Value Added Tax has been the new threating factor for most of the organizations, as it would affect the price of the products reasonably, and ultimately leads to dissatisfaction among the customers. The company needs to adapt to a new pricing strategy, and actually has done to moderate the prices of the products. It has also done the required changes to cope with economic breakdown in the world. Packing of the product, reduction in the amount of wastage and transport need a lot of technological support, as the company needs to assure that the product is neatly labeled, with the improved version of packaging, with minimum wastage. This technological support was justified with the agreement with Food and Drink Federation (FDF).To simplify accounting,