Economics and External Audit

As mentioned in the case remove above, Kellogg is going through a ambitious time. f be an external analyze on Kellogg. Discuss the opportunities and terrors liner the familiarity. Answer Perform an external audit on Kellogg, impart gain the team with better mind of the firm industry, competitors and markets. It should involve as many a(prenominal) managers and employees as possible. Before perform the audit, Kellogg must(prenominal) try to gather as untold(prenominal) as possible on hawkish intelligence and breeding about the products range, scale leaf of scotch, social, cultural, local political situation, legal, and technological trends.External audit staffs or manager should get strategical information update periodic ally by various sources such(prenominal) as such as internet, business magazine, and trade journals from livestock ex qualify markets, new(a)spaper, university and corporate publication. Suppliers, distributors, customers, salespersons and comp etitors represent overly good references information. Once Kellogg collected all these information, a detail study and military rank should immediate carry out by involving a group of key staffs and circumspection to identify the key threads and opportunities whitethorn occurs.Every key element should list land and put with priority with rank from 1 for most important to 20 with to the lowest degree important. This ranking should conduct for both threat and opportunity. These external key factors may change from time to time which very more depending on the situation. Relationships with supplier or distributors ar often a critical supremacy factor. Other important variables use argon include market share value, creative activity economic environment, and technology, cost emulousness, load divert rate, competing of same range of products and sales sop up advantage and so on.Key external factors should be (a) Important for Kellogg to achieving annual and long- full term objectives (b) applicable to all competing organization or political party (c) quantitative and must be measureable (d) hierarchic which mean it may able arrest across the organization but about are only for certain subdivision only. The finalize list must resign and well explain among the organization in order to maximize the result when coif the action items. The key intrusion on external factors should include both threats and opportunities. Opportunities and Threats facing by the companyThe external opportunities and threats facing by Kellogg may refer to social, economic, government, political, legal, demographic, environmental, technological, and competitive trends and events that impact the future of Kellogg. Opportunities and threats are normally difficult to control by an organization. A few opportunities and threads that face are listed here ?Cash flow and company capital may impact or affected by the credit term or bad debt by their customer or cash spend on th e acquisition. ?Price competition leave behind mostly impact organization profits border since organization may offer price discount to maintain the market share. alternate of consumer expectation on the products. It can be technology advancement, green product, simples operation with more users friendly and so on. ?Security of information technology will be a major concern since it may be hack by hacker with more and more transactions go on-line. ?With the step-up of labor cost and processing cost, this will put impact the commodity sustenance prices and eventually these cost will factor in into the selling price. ?Political incredulity in Africa and Middle East make oil prices raise which may direct impact to the manufacturing and logistic cost. Both European and United say having high underemployment and unemployment rank will direct impact the spend power. Both European and United State encounter slow in economic growth. ?Short product life cycles is live a trend an d organization much continuous to invent on new products by spending huge measuring of capital on research and learning to fulfill market need. ?Uncertain on global weather with winters are colder and summers hotter than usual which impact the growth of agricultures products. This factor will impact to the impart demand which will directly impact to the raw material price.