Q2
- It is difficult. People must think differently for it to be accomplished. It demands constant creativity which may be lacking in an enterprise. As well, it requires development of new relationships which may be hectic as employees may be uncomfortable with new tasks and activities.
- It consumes a lot of time due to its demand for people’s involvement, research, resource reallocation as well as time needed to change the organization.
- Its implementation may be impossible if there is lack of commitment or presence of internal resistance from employees, consumers or the community.
- It may be bad as it is usually based on assumptions. The projections made are always overly optimistic.
Kellogg's' business is facing up to these problems. To win the commitment and to reduce internal resistance, it effectively communicates to every staff about the need for the strategic planning. Every staff is informed on the need for the achievement of set achievable objectives. As a result of effective communication, every staff’s loyalty is won towards following certain actions aimed at achieving stated aims. Besides, it put in place sound process of planning. This made it overcome problems associated with change. Generally, it is evident that Kellogg's has better communication channels, has remained open to new ideas and has superb management. Also, it has established a climate that is very favourable to strategic planning. For instance, for a long time, it has encouraged people to engage in more physical activity. This has made it work closely with Amateur Swimming Association (ASA). Lastly, its plan addressed most pertinent issues directly.
Q3
The planning technique shown is Boston Consulting Group (BCG) Matrix. It is a business’ portfolio analysis tool. The technique, which uses a graphic representation, helps a business analyse its market share and the level of growth in the industry. It helps in determining the type of a business unit’s product portfolios that should be prioritized. It is the analysis of strategic business units in two dimensions. Simply, it is the relative analysis of the prospective of an enterprise and the analysis of the environment. Therefore, an enterprise can be classified as low or high with respect to its growth rate in the industry and comparative market share.
When Kellogg’s decided to launch the Fruit Winder, it fell into the stars. Stars signify units of a business with larger market share in an industry which is growing fast. Even though they require large investments in maintaining the lead, they generate cash. It represents high growth rate, and higher share products. They have modest net cash flow. Launching the Fruit Winder in the stars is applicable since Kellogg’s is extremely competitive in the industry. Also, having it placed in the stars make the business very attractive. Also, if successful, the star will automatically become cash cows which a strategic business unit with low growth but with higher share products or business.
Q4
An alternative organization audit that could be used on Kellogg’s is the porter’s five forces model.
The most effective organization audit is the use of Porter five forces model. The behaviour and competiveness in the catering/restaurant industry is influenced by intensity of rivalry of existing industry players, power exerted by its customers, power of suppliers, potential treat of new industry entrants as well as threat arising from substitute products. by understanding such forces, the competitive advantage can be easily established.
The stakeholders are groups or persons with the direct interest, investment or involvement in something. For Kellogg’s, stakeholders include its employees, its product consumers, its customers, shareowners and the community.
Reference
Cole, G.A (2000), Strategic Management, 2nd Edition, Continuum, London.
Dibb, S. and Lyndon, S.(2004), Marketing briefs: A revision and study guide, Oxford: Butterworth-Heinemann.
