Kellogg Company Operational Planning

Essay by suzee2253University, Master'sA+, November 2014

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Kellogg Company SWOT Analysis and

Strategic/Operational Planning

Susan L. Fredricks

MGT/521 (MBA 1EC7X7)


Karri Perez

Kellogg Company SWOT Analysis and

Strategic/Operational Planning

Company Overview

As of 2013, Kellogg Company reached 14.8 billion in sales and is the world's leading Cereal Company; second largest producer of cookies, crackers, and savory snacks; and a leading North American frozen foods company. Kellogg Company. (2014). Retrieved from Kellogg was established in 1906 by Will Keith Kellogg. The Company headquarters is in Battle Creek, Michigan and according to "The Statistics Portal" (2014), "there were 30,277 " employees at Kellogg. Kellogg produces 1,600 foods in 18 countries and has sold their products in more than 180 companies worldwide. Kellogg's distinguish brands include Corn Flakes®, Kashi® Pringles®, Eggo®, Pop-Tarts®, Special-K® and Pringles®.

Second Quarter Earnings / Strategic Plan - "Project K"

Reported earnings for the second quarter 2014 were $295 million. However, sales and operating growth was reported lower than expected due to the difficult environment.

("Press Release Kellogg Company Reports Second-Quarter Earnings Per Share Broadly In-Line With Expectations And Provides Revised Guidance ", 2014). In fiscal year 2013 Kellogg implemented the execution of the four-year Project K Efficiency program, which incurred $208 million in expenditures. Project K, Kellogg Co. plans to rebuild brands in four key areas: cereal, snacks, frozen foods and emerging markets. During 2014, the program plans to close several plants (Cookie plant in Charlotte, N.C, ready-to-eat cereal plant in London, Ontario and Charmhaven, Australia snack plant by end of 2014). The program also includes expansion projects such as the snacks facility in Rayong, Thailand in early 2015. Project K's planned outcome is the eradication of seven percent of the Company's global personnel during a four-year time period. The program will require spending so-me $1.4 billion "to relocate production lines and...