Analysis of Kellogg Company
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Introduction Kellogg Company is an industrial
organization It deals with manufacture and marketing of ready to eat cereal and convenience foods. The company specializes in the foodstuffs. In Feb,2012 it produced globally across 17 countries and it sold them in more than 180 countries. It prefers direct sales to its clients to generate more profits and to eliminate middlemen. http://www.premiumessays.net/
Profitability It generates more profits on each sale. It has marked annual constant growth of 6.1
percent. Increasing input costs have also been cut tremendously into gross margins. The company’s growth in the second quarter stagnated. This has been as a result of aggressive discounting strategies by market competitors http://www.premiumessays.net/
Management of the Trend Increased its advertising strategy. Creation of new products. Combining its operations with that of
Pringles. Increase its profit margin by focusing beyond cereal sales. Invest in other competitive ventures with an aim of attracting more clients and fairly competing. http://www.premiumessays.net/
Liquidity Main source of liquidity for Kellogg is the
operating cash flow. It is supplemented by lending. Lending is based on major acquisitions as well as other major transactions. The strength of the company is in its cash generation ability. This ability enables the company to meet its investment needs. Company management also has confidence that the operating cash flows http://www.premiumessays.net/
Competitors Kraft and General Mills are two major
competitors for Kellogg Company. Kraft is a large company with branches across large cities across the globe. Kraft makes many of its profits from snacks. General Mills and Kellogg on the other received most of its profits from cereals. Their major threat is prices of oil and plastic. Kellogg has also created more cereal product lines. http://www.premiumessays.net/
Debt Debt records for Kellogg are worrying. It has a debt of $5.5 billion. It is trailing a year’s net income of $1.2 billion. The company should focus on reducing its
debts. The company is also trying to get back on track following outpour of cash in the supply chain industry http://www.premiumessays.net/
Forecast Kellogg aims at gaining more profits from its
new products. It has also realized to generate more profits. Kellogg has also built a very solid foundation and has projected to its present market position. Introduction of innovative products that are custom made to suit client needs. Devise of new approaches to remain competitive. http://www.premiumessays.net/
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