Monday, June 17, 2019

Strategic management Essay Example | Topics and Well Written Essays - 2000 words - 13

Strategic management - Essay ExampleFor conducting external audit of the company, its opportunities and threats are discussed be kickoff.Consumers are becoming more health conscious and consequently the demand for healthy and organic food products is also increasing significantly. Kelloggs is capitalising on this trend to develop its brand image (Seaberg et al, n.d.). The company has expanded its melodic phrase in global market and is equipped with necessary human and other resources to gain upper hand position in the international market (Wayne republic University School of Business Administration, n.d.).The rate of competition is increasing drastically which poses a vital threat to the company. The company is facing intense competition from General move and PepsiCo. The products offered by its competitors act as substitute for its ready-to-eat cereal products. The main buyers of its products are Wal-Mart and Target Group. Their bargaining power is very high and it affects the p ricing strategy of the company. gatekeepers Five Forces analysis indentifies the five factors that affect the competition level of an industry. These five forces are bargaining power of suppliers and customers, threat of substitute products and new entrants, and contestation from existing competitors (Henry, 2008, p.69).The company relies on its suppliers for manufacturing high quality food products. It needs suppliers for a wide range of products from raw materials and ingredients, packaging equipment and skilled labours. However, a galactic number of such suppliers are easily available in the global market and it can negotiate with them. Therefore, the bargaining power of the suppliers is quite low in this industry. In convenient food market, a large variety of ready-to-eat products are available. Fast-foods are the greatest threats to Kelloggs products. The barrier to enter this industry is comparatively low due to low

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