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Kellogg Company Operational Planning Essay

935 words - 4 pages

Kellogg Company SWOT Analysis andStrategic/Operational PlanningSusan L. FredricksMGT/521 (MBA 1EC7X7)10/20/2014Karri PerezKellogg Company SWOT Analysis andStrategic/Operational PlanningCompany OverviewAs 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 http://www.kelloggcompany.com. 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 globally integrate internal business services". Schroeder, E. (2013, December). Kellog To Close Two Plants, Expand Another. Food Business News.Kellogg announced that they were investing in new facilities overseas such as India, Poland and Southeast Asia.Operational Planning - Three Tiered ModelKellogg has initiated a sales and operations planning structure called "Integrated Business Planning" (IBS), where employees are empowered to make profitable decisions for the company. (Wagner & Monk, 2013, p. 92). The Company's Global Business Services division (GBS) is establishing an operations service, which will be managed by local teams and to move to a three-tiered service delivery model. "GBS will streamline many end-to-end, transactional and repeatable processes that support our business," said President and CEO John Bryant. "This will result in significant improvements in effectiveness,...

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