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Question:

Discuss about the Company Overview of the Management ?
 
 

Answer :

Introduction:

This report is prepared to analyze the communication role in an organization. Communication is crucial for every business. It helps an organization in accomplishing the goal by communicating it with all the employees and motivates them to achieve the target. Communication is the essential element for every organization. Basically, two or more parties exchange their ideas, beliefs messages through this technique. For analyzing the communication benefits, Kellogg has been taken care of. Communication is the most important way of Kellogg to promote its product in the market. From a commercial viewpoint, the main intention of communication is build and maintains a strong relationship with customers so the company could lead to customers to instant brand recognition, future purchase and product purchase.

Company overview:

Kellogg’s is among the largest ready to eat and breakfast food snacks manufacturer. It is offering many breakfast foods such as waffles, cereal bars; meat alternative etc. currently, company is employing around 32,000 people and operating its business sin more than 180 countries. Over the past years, company is continuously enjoying great profits. The brand of the company includes apple jacks, froot loops, Frosted Flakes, corn flakes, Pringles, nutria-grain, cheez-it-eggo, Morningstar farms (Kellogg, 2008). The production house of the company is in around 18 countries. It has been founded in 1906. Over the past years, company is continuously enjoying great profits. The organizational culture is quite strong also. The main objectives of the company are as follows:

  • Balanced Diet
  • Fitness Programs
  • Nutrition Value
  • Responsible marketing

Organizational Communication Principle:

  • Formal Communication:

Every organization uses this principle of communication to order the employees and take the feedback from them. In this organization, the communication of the information and orders is done in a formal way and according to the organizational structure (CIM, 2004).

This communication style has been adopted by the Kellogg’s too. Kellogg’s organizational structure chart shows that the communication flows downward to upward and vice versa such as upward (manager) to downward (staff0 and staff to managers.

  • Informal Communication:

Informal communication is very normal in every organization. It occurs usually unconsciously and naturally within an organization on a regular basis. Casual colleagues and office grapevine are the main example of informal communication.

Kellogg is also experiencing informal communication within the business structure (Mintel, 2008). Many of the employees of the company communicate the other department employees or their friends about the information of the company informally. 

  • Interpersonal Communication:

Online communication and telecommunication is the part of interpersonal communication. This method allows the parties to interact face to face. This technique helps the company to communicate the news or information very quickly (Griffin et al, 2010).

This technique is used by the Kellogg’s to solve employee’s issues and motivate them to work effectively and efficiently. Time and cost consumption get reduced in this category.

 
  • Organizational Culture:

Organization culture is a silent network to understand the employees about the organization’s standards and norms. An established culture attracts the employees more and helps them to increase their productivity.

This communication principle also motivates the employees of Kellogg’s to work according to the organization’s standards and enhance the productivity. These communication principles are used by every company as the employees could be motivate without any further consumption of cost.  

Problem:

Kellogg’s is having a great competition with Kraft and general Mills. The main sectors in which Kellogg is operating are snack sectors and cereal products. General Mills is more close to the Kellogg in relation to competition as the products offered by the general mills are quite similar with Kellogg (Wilcox and Reber, 2016). In terms of global market and size of revenue, the company is on third largest position.

Company

Net Revenue

International Revenue

Gross Margin

Kellogg

$10906

32.6%

44.2%

General Mills

$11640

15.8%

40.1%

Kraft

$34356

32.4%

36.1%

 

The above table depict that company is making very low revenue in comparison of other two companies. Kellogg could concentrate on nutrition values, healthier products, balanced diet etc to change the area which is required to make change in the content of product and the promotional and communication campaign in the effort to change the mindset of the customer and influence them that the product offered by the company is a healthier option (Datamonitor, 2008).

Organizational Communication Campaign:

Communicating a product or brand is a way to ensure that the customers could relate the product like a level that they would relate it with a particular buying activity. It has to prepare in such a manner that it could be recognized by the customer within many products (Putnam and Nicotera, 2009). It must be in a positive manner and also contain a social message that promotes the social needs.

The main objectives of a communication campaign are influenced and inform the consumer behavior. Following is the analysis of communication campaign of Kellogg:

 

Advertising:

Kellogg is spending approx 12% of total turnover on promotions that is approximately equal to $1.4 billion. Further, the advertising is focusing over many markets for fulfilling the brand objectives. Such as for promoting the product “K”, Kellogg has spent euro 5 million in a year. The slogan used for promoting this product was “Drop a jean Size” (De Pelsmacker, Geuens and Van Den Bergh, 2007).

Similarly, the other products of the company are promoted with some creativity such as tigers for frosties to attract the children. The communication has at least 27% of total advertising budget (Tench & Yeomans, 2009). Kellogg has included the healthy benefits of the products and communicated that any product of it would not harm the child audience. This depicts that the promotions of company in the media is safe and beneficial for the children.

Packaging:

Kellogg focuses over the packaging to make it more attractive so that younger audience, youth and old audience could attract. The packaging of cereal brands are specially made very attractive and bright for the children. However, company also focused that the packaging must be in such a manner that the healthier benefits of the company could not be harm (Fill, 2006). The packaging of Kellogg product has a depth information about how could the products satisfy the needs and demands of balanced diet and nutrition value.

Sponsorship:

Sponsorship is the best way to promote the business. For prompting the healthier and balanced diet food, Kellogg currently started to sponsor the fitness events and working as a partner with organizations like YMCA and healthy kids to promote the value of health and exercise for children (Oliver, 2008). This communicates the consumer about the concern of company about the health, benefits of exercise which enhances the fitness within children.  

Marketing:

With the enhancement in technology, the communication campaign has got many significant opportunities to promote the product (Kolter, Wong, Saunders and Armstrong, 2005). However, Kellogg used this online marketing in a great manner to attract and promote the customer and product. The official website of company www.kellogg.com is the main area of promotion.

Further, the online presence of the company also helps the company to achieve the objectives such as health, nutrition, balance diet, fitness etc. thus the online marketing of the company is influencing the customer on a great level to buy the products of Kellogg.

Brand Identity:

The brand name of Kellogg is recognized and associated with the breakfast cereals from many years (Prehofer & Bettstetter, 2005). The brand identity has been altered with the health and fitness options to reflect the growing objectives of the company. The new identity of the company is helping it to attract more customers.

The promotions of the company have set a brand image in the customer mind in a manner of healthy and diet food. All the other products of the company has targeted very well to the relevant target market.

Thus the market campaign of Kellogg is very well to enhance the market share and net profit of the company.

Department:

PR department stands for public relationship department. This department interacts with the public, inform the customers about the changes in the company and maintain ties with customers. Kellogg PR department has been analyzed for this study (Messina, 2007). The PR department of Kellogg has been analyzed as follows according to against of studied PR principles:

 

Deceit:

It has been found that whenever the PR department of the company releases some news about the company, they deceive. This makes the situation worsen. Company must take care about it to improve the public relation (Kellogg, 2008).

Contact Information:

This principle depicts that every piece which comes from the PR department of the company must have contact information on it. But the Kellogg PR department doesn’t take it seriously and fails to provide contact information on every paper.

Target Information:

PR department of the company uses the most costly way to inform the customers about the changes such as media or press release (Kapferer, 2008). Company could use the less costly way to communicate the information.  

Photographs:

A great photograph with the caption line could help the PR department to convey the information but Kellogg rather use the most costly ways to communicate it.

Media Relations:

Media relations of the company’s PR department is not that much good. This impacts as a high cost over the company and the message is also get divert (Tse and Viswanath, 2005).

Tools:

The tools for conveying the details must be appropriate but the PR department of Kellogg doesn’t give more focus over it and take the help of random tool to communicate the information.

Timing of the company is not good at all. PR department always convey the message at wrong time and it impacts over the sale of the company.

Stay Active:

PR department of the company is not at all active. They always wait for a particular moment to share the information rather sharing it on relevant time. This makes the message of no sense (Johnson, Scholes  and Whittington, 2007).

Fact Checking:

A message must always be communicate after checking the accuracy of it. But PR department of the company always communicate it without checking any accuracy of the message and due to it, sometimes the communicated information is not at all accurate.

Thus the company is suggested to make some improvement in the PR department to enhance the goodwill, market share and turnover in the market.

Ethical Problems:

Ethical problem refers to a situation which requires an organization or person to choose between many alternatives which must be evaluated as wrong or right. As discussed above the PR department of the company is not performing well and facing many issues in the context of relationship with customers (Broadbent, 2013).

Problem solving techniques:

Following technique could be used by the companies to resolve the ethical issues within the business so that the relationship with customers could be more strong:

Virtue Theory:

This theory is one of the most appropriate theories to resolve the ethical issues in an organization. This theory explains that a person cold resolve the ethical problems by analyzing the situation and by ask himself or herself that what would a great person do in this situation. This theory discusses the cross culture virtues, timeless virtues such as wisdom, faith, justice, charity, courage and temperance.

This theory could be opted by the Kellogg to resolve the ethical issues in the PR department. Top level management of the company could ask the PR department members about the problems (Breit & Demetrious, 2010). The reason behind such problems and identify the root cause of it. This would help the managers to know the main reasons behind these kind of problems and issues in PR department. This theory could be applied by the company as follows:

Management could take a 1 to 1 meeting of all the members of the PR department and ask them about the reason. The reason must be analyzed very well. Company could help the employees in resolving the issues or make them understand by giving them situations or options to get over the problem (Guth & Marsh, 2016).

This theory could help the company to resolve all the issues of PR department and thus the link of company with its customers would be enhanced on a great level. This technique would also help the company to enhance the communication with customer, suppliers, goodwill in the market, sales revenue, share price etc.

 

Conclusion:

As could be seen from this report, there are many organizational principle, an organization could implement in its business to enhance the market share and revenue of the company. As study has been done on Kellogg’s to analyze the organizational communication principle and its benefit. It has been found that communication is the most important element of every organization.

Kellogg is among the top 3 companies in context of breakfast food and cereals. The amount earned by the company in this industry is the $10906 million. Company could be enhanced the revenue and market share through a good communication campaign. A communication campaign has been analyzed on Kellogg for this study. It has been found through this analysis that Kellogg is using the best of communication style to campaign the product of the company. Company has focused over the key elements of the product to promote it in the target market.

Kellogg’s PR department is not performing very well as the main principles of PR departments are not even followed by the company. The PR department of the company is obliged to make some changes in the technique to improve the relationship with public such as customers, suppliers etc.

Some techniques have been suggested to the company to improve the PR department and resolve the ethical issues from the department. Company has been suggested some steps to implement the strategy so that the revenue of the company could exceed. It has been found through the report that communication is an essential element of every business.

Without communication, it is not possible for any company to retain in the market. If a company uses the communication techniques in a best manner than the company could easily enhance the market share and enhance the employees. Thus it could be concluded that communication is an important part of every organization.

 

References:

Breit, R., & Demetrious, K. (2010). Professionalisation and public relations: An ethical mismatch. Ethical space: the international journal of communication ethics, 7(4), 20-29.

Broadbent, D. E. (2013). Perception and communication. Elsevier.

CIM (2004). Marketing Communication: 10 minute guide. Chartered Institute of Marketing. https://www.cim.co.uk/mediastore/10_minute_guides/10minguide_MarketingCommunication.pdf (Accessed 21 March 2017).

Datamonitor (2008). Breakfast cereals: Global Industry Guide. London: Datamonitor.

De Pelsmacker, P. Geuens, M., and Van Den Bergh, J (2007). Marketing Communications: A European Perspective. Edinburgh: Pearson Education Ltd

Fill, C. (2006) Simply Marketing Communications”, Harlow, Pearson Education Limited

Griffin, E. A., Crossman, J., Bordia, S., Mills, C., Maras, S., Pearse, G., ... & Shanahan, D. (2010). A First Look at Communication Theory, Em Griffin. Details: Boston: McGraw-Hill Higher Education, 2009., 230-265.

Guth, D. W., & Marsh, C. (2016). Public relations: A values-driven approach. Pearson.

Johnson, G, Scholes, K and Whittington, R (2007), Exploring Corporate Strategy, 8th Edition. Harlow: FT Prentice Hall

Kapferer, J.N (2008). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. 4th Edition. London: Kogan Page

Kellogg (2008). About the company. https://www.kelloggcompany.com/ (Accessed 21 March 2017).

Kolter, P., Wong, V., Saunders, J and Armstrong, G (2005). Principles of Marketing: European Edition. Harlow: Pearson Education Ltd

Messina, A. (2007). Public relations, the public interest and persuasion: an ethical approach. Journal of Communication Management, 11(1), 29-52.

Mintel (2008). Breakfast Cereals - UK - February 2008. London: Mintel Group

Oliver, S. (2008). Public relations strategy. Strategic Direction, 24(5).

Prehofer, C., & Bettstetter, C. (2005). Self-organization in communication networks: principles and design paradigms. IEEE Communications magazine, 43(7), 78-85.

Putnam, L.L. and Nicotera, A.M. eds., 2009. Building theories of organization: The constitutive role of communication. Routledge.

Tench, R., & Yeomans, L. (2009). Exploring public relations. Pearson Education.

Tse, D. and Viswanath, P., 2005. Fundamentals of wireless communication. Cambridge university press.

Wilcox, D.L. and Reber, B.H., 2016. Public relations writing and media techniques. Pearson

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