Business Strategy and Policy Assignment Example | Topics and Well Written Essays - 1000 words

Business Strategy and Policy - Assignment ExampleKellogg uses healthier ways of producing its products. Kellogg has tried using genetically modified raw materials for producing the goods. The company has tried to eliminate raw materials that have high fat content. Health problems are increasing in alarming rate. hoi polloi are suffering from problems related to obesity. In such a scenario, Kelloggs use of healthier raw materials like low fat oil would save lead to increase in demand for their products (Aaker, 2009).Kellogg did non take any effort in developing new products. They have continuously carried their business with the equal line of products. There was no modification in products and it also did not focus on matching its products with the changing customer needs and requirements. The taste and preferences of consumers were not considered while making any decisions regarding product development. There was also no diversification plans in the business. This increased threa ts from competitors. They could develop new products and capture Kelloggs market. (Fleisher, 2001).Kellogg whitethorn face a threat due to fall in its sales figures. This can be due to Kelloggs inability to influence prices of its products. In the initial years, when Kellogg used small grocery stores for distributing the products, the company enjoyed significant power in specifyting its own price. But with the growth of the company, it has started transacting with large retailers. Such retailers do not allow Kellogg to negotiate prices and as a result Kellogg sets its prices according to the needs of the distributor (Fleisher, 2001).Threats related to new entry Kellogg has a well recognized filth name. They have acquired this position by continuously maintaining product quality. The threat related to new entries is thus not very high. The company has the advantage of using economies of scale. The standards set by the company globally cannot be matched by a new entrant instantly.Co mpetitive