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Analysis of Kellogg Company

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Title: Analysis of Kellogg Company


1
Analysis of Kellogg Company
  • Presented By
  • http//www.premiumessays.net/

2
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.

3
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 companys growth in the second quarter
    stagnated.
  • This has been as a result of aggressive
    discounting strategies by market competitors

4
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.

5
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

6
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.

7
Debt
  • Debt records for Kellogg are worrying.
  • It has a debt of 5.5 billion.
  • It is trailing a years 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

8
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.

9
For More Information About Kellogg Company
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