STEEPLE analysis

Published: 2019-05-21 10:58:09
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STEEPLE acronym stands for Social/Demographic, Technological, Economic, Environmental, Political, Legal and Ethical factors. STEEPLE analysis a tool used to evaluate external factors that influence the performance of an organization. This paper shall present the SPEEPLE analysis of Kellogg Cereal Company. Kellogg is the leading cereal maker company in the United States. The analysis helps in decision making and alignment with forces affecting the whole world.

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Social

Social factors can be religion, values, lifestyles, advertising and demographics. The large population of USA of about 318 million people by 2014 contributes immensely on Kelloggs customer base. The company has operations in 18 countries, and its products are selling in over 180 countries, a good indication that products have a real brand as well as the market. Since the cereals have developed the light food sector, most citizens are going for cereal products as a means of preventing and fighting obesity, (CALDER, 2008). Most people lack adequate time for breakfast hence the option of easy takeaway stuff as an alternative. People always want to be informed on what is healthy and safe.

Technological

Health-diet food is important, and scientific progress in nutrition plays a big role in marketing any food products. With the ever advancing technology, the level of advertisement and communication about the product easily determines the awareness of the product. Innovation on packaging; resealable, small bars and different packages inspire the organizations success, (IACOBUCCI, 2001). Technology on recycling packages is progressive.

Economic

General deterioration of economic activity and food market contraction has consequences for the entire food industry without excluding Kellogg. Financial constraints and access difficulties limit many people to buy food stuff. Notable high rate of unemployment significantly reduces customer numbers of cereal products. High inflation rate causes rapid increase of prices of cereals in the market hence increased product prices forcing many people to shun. The poor economy means people face pay cut in salaries and wages which consequently reduces expenditure power.

Environmental

Preservation of the natural environment is paramount. Local emissions are monitored to minimize pollutions of any kind. Full compliance to regulatory limits on national and local contaminations and emissions required. The introduction of energy efficient programs and technologies is encouraged to minimize using energy resources. Proper packaging is essential to facilitate ease and safe transport of breakfast cereals to clients homes or offices whilst ensuring food safety standards are met. Packaging materials can be recycled to reduce waste therefore it is clearly communicated to manufacturers to participate in realizing a sustainable environment. Consumers are urged to play this important role along. Manufacturing required a lot of water, but efficient procedures are provided to ensure wastage is reduced as much as possible.

Political

The government enacts laws that affect Kellogg. The company has to operate within the set laws and policies. There are reform policies and strategies to solve the problem of obesity. Kellogg like any other company, therefore, has to comply with the government when it makes its food stuff. All the guidelines on controlling sugars affect the entire food industry.

Legal

Kellogg is committed to maintaining transparency in all practices. It has controls to monitor, direct and disclose its political activities as required by applicable laws. There are set food safety and environment standards that must be met during production in terms of nutrition and health. The Board of Directors and an independent team of experts provide oversight to all political processes.

Ethics

Ethical values contribute to success in an organization. In 2014, Kellogg was recognized and the Worlds most ethical company. It is known to promote best practices when it comes to ethics and governance, (TYBOUT & CALDER, 2010). A company should at least surpass legal compliance minimum requirements, take care of the employees and listen to their customers. Corruption, cronyism and nepotism account for most corporate drawbacks in organizations. Integrity is achieved through shaping ethical performance and provision of clear guidelines to organization stakeholders and employees regarding organizations stand and commitment.

Porters 5 Forces

Competition

Any product that has market attracts investors. Kellogg is committed to staying ahead of its competitors by upholding high standards and provides quality products. It brings on board the best suppliers on the market to attain cost efficient and product quality.

New products

Customers are tempted to taste new products at the expense of the existing ones. The company regards innovation as a pillar in the development of new products with the aim of meeting consumers nutrition, and health needs to keep the customers using its products. There is innovation in product type, communication, and packaging.

Recruitment and Training

Kellogg looks for talented and skillful workers to bring innovation. Employee recruitment is done internationally. Training and coaching are done to workers to improve performance and efficiency. It measures performance and awards hard-working employees hence developing a relationship with them. The company pays its employees well and has healthy working shifts.

Procurement and Logistics

The purchasing division of the company negotiates with to determine rates to save time and reduce supplies cost. It engages best partners and suppliers based on efficiency and product quality. The whole inbound logistics system is automated for efficiency.

Marketing and services

Kellogg employs efficient channels of distribution of products to comfort customers. It gives sponsorships to promote brand awareness around the globe. They sometimes have promotions to reduce product prices.

References

CALDER, B. J. (2008). Kellogg on advertising & media the Kellogg School of Management. Hoboken, N.J., John Wiley & Sons. http://www.contentreserve.com/TitleInfo.asp?ID={B8138F9F-A95C-4B5E-9359-C43244A15C9B}&Format=410.

IACOBUCCI, D. (2001). Kellogg on Marketing. New York, John Wiley & Sons. http://public.eblib.com/choice/publicfullrecord.aspx?p=117540userid=^u.

TYBOUT, A. M., & CALDER, B. J. (2010). Kellogg on marketing. Hoboken, N.J., Wiley. http://public.eblib.com/choice/publicfullrecord.aspx?p=588942.

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