On my honor as a student, I have neither given nor received any unauthorized aid on this assignment/exam.

Everybody Loves Cereal!

Kellogg

Raul Mendez

Lindsey Wilson College

11/2/2015

On my honor as a student, I have neither given nor received any unauthorized aid on this assignment/exam.

Introduction

The majority of the people do not comprehend how important the breakfast in our lives is. Research shows that 93% of the population in the United States eat or drink something for breakfast, and 51% of this people prefers cereal, this is mainly because health factors.

Kellogg's was founded as the  Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as a consequence of his effort with his brother John Harvey Kellogg at the Sanitarium Battle Creek following practices established on Adventist Seventh Day Christian denomination and he also believed in the remunerations of a vegetarian diet and exercise.  

John Harvey Kellogg thought that masturbation was something really bad for the people, Therefore, Kellogg wanted to combat masturbation by a simple method: the simple and healthy food. And, he claimed, that was able to overpower the instincts of man's primary, as well as a healthy lifestyle. On the opposing, he believed that other foods such as meats it augmented.

So, during his stay in Battle Creek Sanitarium in Michigan, he decided to devise a kind of breakfast inadequate by sexual impulses cereal granules with oats and corn. Later, he teamed with his brother Will and both decided to put sugar to the recipe and then create one of the most famous cereals with his name.

The company produced and distributed with great success toasted corn flakes (cornflakes) of Kellogg Company and Kellogg was renamed in 1922.  From 1969-1977, Kellogg's acquired several small companies including Salad Foods , Fearn International, Mrs. Smith's Pie, Eggo and Pure Packed Foods, however, was later criticized for failing to diversify even more like General Mills and Quaker Oats did. In March 2001, Kellogg made ​​its largest acquisition, the Keebler Company. Over the years it has also moved to acquire Morningstar Farms, and Kashi divisions or subsidiaries. Kellogg also owns Bear nudity, natural touch, Cheez-It, Murray, Austin, Famous Amos, Garden burger (acquired 2007) and marks the plantations.

In February 2012, this giant Kellogg bought the brand power of potatoes Pringles to Procter and Gamble for $ 2,695 million.

Some of their main products are convenience foods, such as cookies, savory snacks, crackers, fruit-flavored snacks, toaster pastries, cereal bars, frozen waffles and vegetable foods.

Their most important customers actually are mainly retail stores as Wal-Mart or Kroger. Kellogg have plants to manufacture in 20 countries and they market their products in more than 180 Countries all around the world, and now they count with 29,790 employees.

Competition

Kellogg Company is in an endless combat for the #1 spot in the US and international cereal market with its highest rival, General Mills. Another big competitor for Kellogg is the huge firm Nestle, they have the biggest market share of cereals in South America, being over General Mills and Kellogg, but in Europe and in the United States Kellogg is the main supplier of cereal.

Here is a small graph about the market share in 2014 and the main suppliers in the US.

[pic 1]

KELLOGG CO. RATIOS:

Profitability Ratios

Liquidity Ratios

Leverage Ratios

Activity Ratios

Other important measures of financial performance

SWOT Analysis

        After the research in the information of the company Kellogg, here is the analysis about their performance in the market.

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