Business Level Corporate Level Strategies

Business-Level Corporate-Level Strategies

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Analyze the business-level strategies

Analyze the corporate-level strategies

Analyze the competitive environment

Difference in slow-cycle and

The corporate strategy of a business is based on the vision and mission of the entity. It also lays a foundation stone for business and functional strategies. The industry sector specific to the business is also influential factor in developing strategies for a specific corporation. Diversification in related and unrelated product lines as well as expansion through geographic presence enables the organization to capitalize on profits. The sections below highlight the Kellogg’s corporate and business strategy. It also investigates the industry competitors of the business and their strategy. The fast and slow cycle markets are also discussed with respect to their relatedness in strategy.


Kellogg’s is one of the famous brands in food processing industry. The business has not only created new line of product but also specialized in the range of products they produce. The company was inaugurated in 1906 based on the experimentation of Kellogg brothers since 1898. The business initially hired 44 employees to commence its operations. However within short span of time the business gained popularity and it has also started to expand beyond borders. The company products and quality is well recognized throughout the world. The business has also emphasized on the quality and nutritious values of their products. The corporation is considered one of the notable innovative businesses that have introduced several flavors and tastes within the corn flakes and breakfast food processing sector of the country and globe (Kellogg’s).

The corporation has taken a notable initiative in 2009 — 2010. The business has learned through research that the population within United States does intake proper fiber quantity. The business thus started an initiative through which they increased fiber content in their products. The initiative is also regarded as a one of the customer centric approach taken by the business to cater their target market. The sections below are focused to investigate the business level strategy and analyze its strength for future success. The corporate level strategy is also explored and its impact on the business growth (Kellogg’s). The competitive business environment is also tested in relation to one of the business competition. The selection of strategy and its implementation is also relevant for consideration with respect to slow moving and fast moving market cycle of the business.

Analyze the business-level strategies:

The large corporations require corporate level and business level strategies in order to function within the dynamic business environment. The business level strategy of the corporation is to focus on the single line of products. The company only focuses on producing a variety of cereals. The business has added various products and categories within the business line however did not deviated from the basic production principles. The business level strategy to focus on a single product line and specialize within the category has allowed the business to diversify within the flavors and tastes of cereals. The business has produced cereal bars and other related breakfast products while not entering into any other related or unrelated business line.

The business level strategy adopted by the corporation is not only successful but has also created a natural inclination for customers to rely on the business. Kellogg’s is not only a reputable brand within the business competition but the customers also prefer its products. The strategy of the business to focus only on the preferred product line has enabled the business to establish its authenticity within the processed corn flakes. The product taste and available flavors are also appreciated along with the original recipe product. The strategic and business controls evolve around the vision and mission of the corporation. The companies decide a clear strategy to incorporate their prime values and achieve objectives (Lussier, 2011).

The business level strategy and functional planning are a part of the core operational process for any organization. The overall business strategy is segregated in the functional strategy to facilitate the individual business processes. However the major theme of the business is brought down into focus of a strategy at each level. The strategic planning process is also denoted as a coordinated approach for each functional area including marketing, advertising, accounting, finance, and human resources. It is also evident in the case of Kellogg as the business has focused on a single product line in processed food industry. The elements of customer care and providing essential nutrients to consumers is major element of their corporate, business, and functional level strategies. It is also reflected through their approach to advertise and market their products. The product innovation and addition of flavors and packaging also revolves around this strategy.

The adopted approach is one of the significant approaches adopted in the business. The single business focus and a strategy for growth have enabled Kellogg to develop a brand identity within the market. It has also created a centric approach for the product development and management to enhance value of the product for the customers. The single focus can be beneficial in some respect however at the same time it can also lead to minimal differentiation. The competitors actively develop and replace products using market research and technology as leverage. It is not the case in Kellogg’s business strategy.

Analyze the corporate-level strategies:

The long-term success of a business is mostly based on its strategy to envision growth and develop a corporate strategy. The businesses base their corporate strategy on mission and vision statements. The discussed corporation is also no exception. Its long history also reflects that it has successfully adopted the strategy of enrich its corporate presence by taking initiatives for customer care and environment. The business has gained successful growth through expanding in the global market. The economic growth of the business is also an enabler for the corporation to develop its brand identity as a noble and internationally present business entity. Kellogg has not entered into a joint venture but adopted a corporate strategy of increasing its customer reach through distributors and large retail stores.

The corporate strategy of the business was to ensure market leadership in breakfast cereals and maintained its status for long time. The business faced one of the serious crises in 2001 when the most significant position of the brand was seriously threatened by the rivals. The business had to shift its strategy and introduce innovative products to diversify its range. The corporate strategy of the business was not only altered but its mission was also shifted. The corporation now operates its corporate strategy around the principles of being a company that is food choice for its consumers. The turnaround and innovative strategy of the business shifted its focus and moved towards health nutrition. The business regained its strategic position in the market through diversifying its products range from breakfast cereals to breakfast bar, cookies, crackers, toaster pastries, fruit flavored snacks, frozen waffles, and veggie foods. The corporate strategy of the business to focus on the diversification in products and increasing their geographic reach has also initiated an innovative approach for growth (Hitt, Ireland, & Hoskisson, 2012)

The customer centric health focus provided the foundation stone for new diversification strategy for the business. The company investigated the gap in nutritious value for United States consumers and tapped the potential through which the business reinvested in their products. The business enhanced the value for their consumers through adding additional fiber within their product range. These features were notably centered towards their original approach of minimal diversification or maximum related diversification. The related diversification of the business created synergy for the corporation to gain competitive advantage over its rivals. The risks of losing its market position are reduced and at the same time business also profited from increased sales (Hitt et al., 2012).

One of the major contributor in gaining profitability and market share was also achieved through opening its operation to several countries that were previously constrained. All these features combined provided the business a corporate strategy that is more aligned with the changing requirements of international business. The potential present in the global expansion was also tapped through successful integration of corporate and business level strategy. The increased profitability has also enabled the business to gain its long standing market reputation (Hitt et al., 2012).

Analyze the competitive environment:

This industry classification related to Kellogg is one of the largest manufacturing sectors in the United States. It is classified as transforms livestock and agriculture products into foods of immediate consumption. The large share of the industry in country’s gross domestic product and exports also attracted large investments within the sector. These investments were made by the companies with long history and sound financial background. The businesses involved in the sector are largely focused on sales within the country and exports to other countries. There are various opportunities as well as challenges faced by the sector in perusal of goals to establish long-term sustainable demands. There are various sub-sectors and competitors within the industry. Similarly Kellogg’s is also encountered with various challenges posed by its rivals. Kellogg’s major competition to some extent is from most companies within the similar subsector of food industry.

Three major competitors of Kellogg’s are General Mills Inc., Nestle, and Ralcorp Holding. Processing’s Top 100 list ranks companies in the food industry with processing plants in the U.S. And Canada based “their sales of value-added, consumer-ready” goods and places Kellogg Co. It is also important to observe that Nestle and General Mills have dropped one position compared to previous year’s list; Ralcorp Holdings has gained three positions while Kellogg has maintained its position on the list.Regarded as one of the largest food companies in the world, General Mills, Inc. is one the Kellogg’s top competitors in the cereal arena. With a brand arsenal constituting kid-friendly Kix along with familiar names such as Chex, Cheerios, Lucky Charms and Wheaties, General Mills proves to be a formidable competition for Kellogg vying for the number one spot every year.

Nestle on the other hand is the world leader in coffee but with its assorted product lines of coffee, baby food, chocolate and bottled water, proves to be competition for Kellogg as the provider of alternatives in the segments. Nestle’s arsenal of brands constitutesBuitoni, Dreyer’s, Maggi, Milkmaid, Carnation and Kit Kat. Finally, Ralcorp Holdings is a major player in the food service market and the largest maker of private label or store brand products in the U.S. It’s portfolio includes Ralston ready-to eat and hot breakfast cereals, Bremner crackers and cookies, Medallion corn snacks, Nutcracker trail mixes and Linette chocolates. It is important to note that ConAgra Foods acquired Ralcorp Holdings in 2013.

Difference in slow-cycle and fast-cycle markets:

There are three major market cycles that are specific to business and company operations. The corporate, business, and functional strategies are also impact the market cycle of the products. The have specific features that are different with respect to the standard and slow cycle markets. At the same time it also impacts the strategies that are adopted to attain growth and increase profitability. The pace of competition and product cycles are also different in all three market cycles. The fast cycle markets are more volatile and require a quick response in terms of innovations and its leading the market towards successful acquisition of enhanced features in the products (Hitt et al., 2012).

Kellogg’s products are related to slow cycle products that have enabled the business to maintain its market presence for such long period of time. The response time in these products is also relatively slower. However the slow cycle markets are diminishing with technology and globalization. The products within the market place are introduced with fast cycle features and soon competitors introduce related features that replace already existing products. The product of Kellogg’s and strategy is also aligned with the nature of its business. The related diversification and single product focus is not an appreciable strategy in fast cycle markets. Fast cycle products essentially require a diligent and continuous focus on innovation in related and unrelated sectors. Moreover it also requires a global presence (Hitt et al., 2012).


The Kellogg’s business strategy to focus on a product line and diversifying within the similar products has enabled the business to specialize and develop its brand identity with this respect. The corporate strategy shift observed during 2010 is due to the perceived threat from its rivals. The business identified a consumer centric approach in redefining its products. The products were launched with additional nutritious components that were found deficient in the United States consumers. The fruit bars and adding flavors to the breakfast cereals has complimented corporate strategy for business growth. The brand recognition as a noble and customer centric brand was also enriched. The geographic diversification has also provided business with increased potential for profitability. However the notable feature that the corporate and business strategies should be in-line with market cycle as certain fast cycle markets require a related and unrelated diversification. It also requires the business to enhance its products through efficiently integrating additional features.


Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2012). Strategic Management Cases: Competitiveness and Globalization. USA: CengageBrain.

Kellogg’s (n.d.). Our best days are yours. Retrieved from

Lussier, R.N. (2011). Management fundamentals: Concepts, applications, skill development. USA: CengageBrain.