Strategic management Essay Example | Topics and Well Written Essays - 2000 words - 13

Strategic management - Essay manikinFor conducting external audit of the company, its opportunities and threats are discussed below.Consumers are becoming more health conscious and consequently the acquire for healthy and organic pabulum products is also increasing significantly. Kelloggs is capitalising on this trend to develop its disfigurement image (Seaberg et al, n.d.). The company has expanded its business in global market and is equipped with necessary military personnel and other resources to gain upper hand position in the international market (Wayne State University schoolhouse of Business Administration, n.d.).The rate of competition is increasing drastically which poses a vital threat to the company. The company is approach intense competition from General Mills and PepsiCo. The products offered by its competitors act as substitute for its ready-to-eat cereal products. The chief(prenominal) buyers of its products are Wal-Mart and Target Group. Their bargain index finger is very high and it affects the pricing strategy of the company.Porters Five Forces analysis indentifies the five factors that affect the competition level of an industry. These five forces are bargaining power of suppliers and customers, threat of substitute products and new entrants, and rivalry from existing competitors (Henry, 2008, p.69).The company relies on its suppliers for manufacturing high quality food products. It needs suppliers for a wide range of products from raw materials and ingredients, packaging equipment and skilled labours. However, a large tour of such suppliers are easily available in the global market and it can negotiate with them. Therefore, the bargaining power of the suppliers is quite low in this industry. In convenient food market, a large manakin of ready-to-eat products are available. Fast-foods are the greatest threats to Kelloggs products. The barrier to enter this industry is comparatively low receivable to low