Question

Assignment Details

For this assignment, suppose that you work for a consulting firm, and that you have been asked to research a company and make a presentation to your client.  

For the presentation:

1. Choose a major U.S. company,
2. Research the company and the market(s) in which it competes, and
3. Prepare a presentation of 10-12 PowerPoint slides (with detailed speaker notes).

Using information from the business press, AIU's Library, IBIS World, and the Internet, address the following in your slides:

• Describe the firm, include such information as its:
  • products or services
  • annual sales, and
  • market share (this information is readily available in the IBIS World database.)
• Describe the market(s) in which it operates.  
  • For instance, does it operate within an oligopoly or monopolistically competitive market, a perfectly competitive market, or is it a monopoly? (Choose the closest fit.)
  • Explain.
• Does it operate in only one region of the United States? Does it operate nationally or internationally? Explain.  
• Who are its competitors?  
  • Give a brief overview of the other businesses in the market that it competes against.
• Identify and explain at least 2 economic concepts that this firm seems to use to its advantage.   
  • Examples might include product differentiation; attainment of economies of scale; advertising; whether the firm is regional, national, or international; and so on.  
• Please include an explanation of how any significant recent events or changes in this market have affected this firm. Examples are mergers and acquisitions, technological change, legal issues, whether market demand is expanding, and so on.
• Provide your evaluation of how this firm might better respond to the challenges it faces.

Present your information, with appropriate pictures and graphics.

Answer 1

Answer: The US multinational food manufacturing company, Kellogg Company, operates in the ready-to eat cereals segment. Founded in 1906 by W. K. Kellogg, it is based in Michigan, US. Some of the prominent brands include Corn Flakes, Cheez-it, and Keebler. These products are produced in nearly 20 countries and sold across the world in almost 180 countries. The company’s flagship cereal brand is sold under the name of Kellogg’s Corn Flakes.

The largest factory of Kellogg’s is located in Trafford, UK while, its corporate offices besides Chicago includes Dublin-Ireland, Shanghai-China, and Queretaro City-Mexico.

The company operates under perfect competition market structure and is characterised by the presence of numerous firms selling identical products.

The main competitors of Kellogg include General Mills; Mondelez International; Kraft Heinz; J M Smucker; Quaker Oats Company; Nestle and Conagra Foods.

The perfect competition ensures that firm is a price taker and its market share does not influence prices. Further, buyers have all the information concerning its products and prices.

During the decade of 1960s and 1970s, Kellogg’s went on acquisition spree as it bought Salada Foods, Fearn International, Mrs. Smith’s Pies, Eggo and Pure Packed Foods. Later in 2001, it acquired Keebler Company while in 2017, it bought Chicago-based Roxbar company.

The company ended its operations in Venezuela in 2018 as a result of economic crisis faced by the country.

Further, Kellogg’s concluded sale of its cookies and fruit snacks businesses such as Famous Amos, Murray’s, Keebler, Mother’s and Little Brownie Bakers in July 2019 to Ferrero SpA, a leading Italian manufacturer of branded chocolate and confectionary products, in a 1.9 bn US$ deal.

In 2017, Kellogg’s reported a 0.7% decline in its earnings and revenue at US$1.269 bn and US$12.932 bn respectively, compared to the previous fiscal year.

Year	Revenue (mn US$)	Net income (mn US$)	Total Assets (mn US$)
2005	10,177	980	10,575
2006	10,907	1,004	10,714
2007	11,776	1,103	11,397
2008	12,822	1,148	10,946
2009	12,575	1,212	11,200
2010	12,397	1,287	11,847
2011	13,198	866	11,943
2012	14,197	961	15,169
2013	14,792	1,807	15,474
2014	14,580	632	15,153
2015	13,525	614	15,251
2016	13,014	694	15,111
2017	12,923	1,269	16,350