Executive Summary

To remain competitive in the market, kellongg’s research and development team develop different products to meet market competition. Data from consumer analysis shows the company to be among the best in using utilizing their research dollars. Despite numerous internal and external challenges, Kellongg has been a leader in innovation. From the year 2009 to 2012, the firm has improved its innovation by 20%. This resulted to an increase in sales of $500 in the same period (Bath, 2012). One would want to understand the strategies used by the company in innovation. One of the important contributors to these innovations is workforce culture.

The human resource teams in the organization ensure that there is a pipeline of ideas; Assist the company meets consumers’ needs as well as strategic geographical expansions. Innovation strategies of the company on the other hand, concentrate on adaptation to emerging market needs. The company realizes that in order to meet its growth goals concentration have to be on infrastructure, process and people. This means that the company would drive provision of infrastructure. Then utilize its employees and protect the organization from external influences. The scope on the innovation strategy of Kellongg covers infrastructure, the influence of the workforce and external influence of customers and governing bodies (Bath, 2012). New technology has the ability to improve on the quality of products; technology also accelerates the rate of production and in ensuring quality of products (Wang, 2009). This paper emphasizes on various strategies of Kellongg towards innovation. It also explains various other theories and application of innovation practices in organizations.

Introduction

Kellongg’s is a multinational food producing company with its head office in Michigan, United states. Kelloggs has undergone rampant growth in the last few years. The company has been able to utilize various innovation strategies to meet company demands. Such innovations have been of benefit in meeting customers’ demands, as well as regulations. The company has moreover has been able to meet its demands through the use of ideas. The firm further has a research and development unit, which assist in the formulation of future growth strategies. kellongg has been a household name in manufacturing cereal breakfast products. The company started its operation over a hundred years ago, and it still performs even better (Bath, 2012). Through the years, the company has been transforming its product to ensure that every family enjoys breakfast. The company is always in a state of motion innovating products continuously.

By the year 2011, the company’s had innovated a product with the addition of vitamin D. The reason for this innovation strategy was to devise a way of combating rickets in children (Whitley, 2000). However, much one might wish to dwell on the successes of the company; there are other influences to its existence. Company’s internal environment has had effects on its growth. The internal environment relates to its employees, policies and level of technology. The company also has been under the influence of the government. The governing authorities have an influence on the production and distribution of Kellonggs products. This would influence prices of kellongg’s breakfast cereals sold over 18 countries.

Innovation

Kellongg has utilized its research and development strategies in ensuring a competitive edge in the current marker environment. Innovation has had gradual effect on humanity for a long time. Innovations on the world’s spectrum began with the combination of ideas from different cultures thereby, improving people’s lives. For Kellongg innovation relates to the development of breakfast products that meet market and consumer needs. The company meets this task by collaborating efforts of various individuals. The organization has talented workforces who perform research and development duties. To observe this, an organization needs to have support systems. Supports system may relate to a culture of innovation.

In order for organizations to meet the needs of innovation, consideration has to be on duties performed by change agents. In an organization, managers and leader need to be change agents. The senior leadership in organizations needs to support innovative activities. It is also important for organizations to have specialists. Specialist in organizations assists in creativity and in development of goals. The company’s strategy involves the development of the institute of food research, which came into use in year 1997, and 2009 saw its expansion. The institute has been of great importance in the development of specialist as well as new products. This institute assist the company meet short-term as well as long-term needs.

Another very vital aspect of innovation for an organization is the use of new technology. New technology has the ability to improve on the quality of products; technology also accelerates the rate of production and in ensuring quality of products. Kellongg utilizes technology in the process of packaging and designing of products. Its research and development team use technology to meet various consumer needs. Technology has been of importance to the organization in the weight management, and this has enabled the organization develop products of various sizes. Further, through technology the organization has been able to meet the needs of customers over wide geographical regions. Krave and Tresor products meet 26 countries needs, Mini-Max wheat’s 3 countries and Crunchy Nut in for countries.

Innovation Theories and models

Kellongg values needs to have an infrastructure, solving needs of people and having a clear process of innovation. To fulfil these needs, the organization has more than 500 engineers, scientists and technicians. The organization values diversity of the workforce and this is evident with the fact that its workforce consist of people from 22 countries. Apart from these employees, the organization has other supporting engineers and technicians all over the world. The organization fulfils this culture using various programs. Such programs include kelloggs scientific Advisory board, moonlighting and Kelloggs international Technical symposium.

Innovation management is therefore, a very important aspect in the management of innovation processes as well other products. Management of innovation assist in the development of products. For management of innovation to take place successfully, various tools become necessary. Management of innovation is important for the organization since it assist it respond to internal as well as external opportunities. It also assists the organization in the creation of processes, ideas and products. However, innovation is not only relegating to research and development units. All employees in the organization assist in meeting innovation needs at their level of performance (Ashenfelter and Hosken, 2008). The innovation process may either be a result of a pull or push. Pushed process relates to newly invented technology while pulled innovation tries to understand the needs of customers

Kellongg’s themes relates to strategy in their production and marketing strategies. The company has been able to work and win the respect from governments, publics and from customers. The company is lauded for its corporate responsibility duties all over nations. In one of its strategy over a million school children in the UK, have been provided with breakfasts. Kellongg’s believe in having a viable supply chain that is in line with environmental and social standards. Therefore, its supply chain contains three key sectors. These sectors are the primary, secondary and tertiary sectors. The primary sector provides raw materials such as wheat, coal and oil. The secondary sector is responsible for manufacturing while tertiary sector provides services. From the start of production to end, the company uses services of the quality, research, sales purchasing and distribution departments. The company on the other hand, uses lean production techniques. This technique has seen the company avoid wastages as well as environmental impacts. Governments have been working on reducing carbon footprints in companies and kellongg values the environment (Ashenfelter and Hosken, 2008).

Kellongg’s .co utilizes the different theories in its production and marketing. These strategies differ from region to region. Perhaps its lean production approach makes the company a global leader in production of cereals. The company has a comprehensive inventory system that run from production to retailing. It is imperative to note that the company has reduced its cost of production and waste through lean production techniques (Ashenfelter and Hosken, 2008). To maintain its marketing needs, Kellongg’s uses just- in-time production technique. This ensures that the company maintains an efficient stock level. Further the company employs a marketing mix strategy that ensures the company has the right stock at the right place and time. With all of these strategies, the company has sustained its operations irrespective of economic turmoil.

Macro and micro factors

The macro elements affecting kellong.co, includes government regulation and local authorities. These are laws and regulations relating to the packaging, consumer rights, quality control and observation of standards. In the year, 2009 kellongg came under scrutiny for its advertisement. The company had fabricated an advertisement based on false health claims on their product. A message from the Federal Trade Commission was sufficient in deterring other industry players from making such claims (Horowitz, 2009). Depending on the industry, companies’ face the following external forces. The economy, finance, customer base, trends, laws and infrastructure are just but broad elements. External factors in the organization affect the performance of the organization in terms of operation or staffing. Laws governing an industry may have an impact on prices of products too (Shove, 2010).

Kellongg’s.co has diverse external and internal challenges that affects its operations. The external environments include an increase in global populations, aging populations, new changes in demographics and the growing population of the Asian markets. The treat of diabetes and obesity might trigger consumer shifts from unhealthy snacks. On the government side, the administration has offered $400 for healthy food production. This initiative however requires companies to invest more on advertising and research. Consumers of breakfast products have become cost-conscious of late. This has therefore, made kellongg produce products for all consumers needs. Improvement of societal technology platforms has seen the company take advantage of mobile applications (Ashenfelter and Hosken, 2008). This has seen the company overcome competition in the market and rivalry. On the internal front, the company has returned a total of $6 billion to its shareholders. Kellongg Acquired Pringles at $2 billion to maintain its operations. The company further invests in its workforce and brands. Competitions have made the company more aware of employees need as well as customer needs.

Innovation process

In the process of innovations, an organization can employ either an incremental approach to the process or a radical approach. The incremental approach to the process involves improving on existing products in the market. It focuses on the improvement of action using feedbacks, assessments adaptation and revisions. Radical innovations on the other hand refer to the development of new systems. Company’s internal environment has had effects on its growth, the internal environment relates to its employees, policies and level of technology. In this strategy system, structures and processes aim at creating new markets. Kellongg employs both radical and incremental approaches (Davenport, 2013). In respect to the incremental approach, the firm wishes to adapt to customers need. Subsequently the company launches products in new markets.

Innovation refers to the application of better solutions to solving organizational problems. Individuals utilize innovation strategies in order to meet new requirements, develop new products or venture in the existing market. The process becomes a success when one uses technologies, ideas, products and services available in the market. The term innovation can also be termed as something raw. Using innovation, individuals are able to develop original content (Kasper, 2008). Therefore, one can say that innovation relates to something new, original or raw in the market. Innovations have been used in businesses, social units and organizations.

There are various sources of innovations for organizations and in the society. However, innovations are developed to answer problems. Innovations may because of changes in the market structure, industrial structure or global demographics. Another source of innovation important to an organization results from end user needs. This type of innovation relates to when an individual develops their own innovation to meet personal needs. The criteria for developing effective innovative products require these conditions. Individuals need to recognize the need, people need to be competent, and there should be financial support.

The process of innovations begins with the generation of idea. At this step, the organization decides on which approach to use in innovation. This decision comes from internal experts, external open, internal organization and from external experts. Companies at this stage may wish to employ the following tools; brainstorming, deep reflections, continuous improvement, idea contests and innovation competitions (Chesbrough, 2013).

The next step to innovation is piloting and prototyping. Prototyping may be either slow or rapid depending on the needs of the organization. During this stage, organizations assemble resources, scan through the market to see where the idea fits, plan, design and test to see if the innovation meets corporate goals. Kelloggs concentrates of providing business unit innovation and global marketing innovation. The company employs an open approach to innovation (Davenport, 2013).

The next step to innovation relates to diffusing and scaling. At this stage, organizations need to decide which their preferred method of diffusing their innovation is. The organization may decide to disseminate information, replicate, enhance growth and develop an enabling environment (Kasper, 2008). Kellongg demonstrates its innovation strategy through promoting growth and enabling environment. At this stage, the company may use branching, public policy interventions, public awareness or technical assistance as tools.

According to Wallin, and Krogh (2010), the next step to the development of innovation strategy relates to change in culture. Organizations need to have nurtured a culture supportive of innovation changes. Organizations may develop a culture of innovation through the following practices: an organization may democratize its innovation, experiment and develop learning goals, communicate changes, collaborate with other players and be accountable for funds (Graham, 2009). Such organizational strategy requires commitment from the top management. It is also important for organizations to democratize its innovation duties. Democratization promotes creativity.

Conclusions

Kelloggs has been a global leader in the distribution and manufacture of breakfast cereals. The company values contributions made by different units. According to the company’s strategy, innovation is perhaps the most important of strategies. Through innovation, the company has been able to meet market demands (Kennedy, 2009). The organization further utilizes innovation to open new markets, ensure earlier consumer engagement, earlier supply chain management and ensure stronger open innovations.

Recommendation

For future prosperity of the organization, the company may continue using its current open model. It is recommended that the management team consider market research as well services from external experts. The organization needs to venture into new markets. It might market the same product but to a larger platform. This type of strategy may be realised using moonlighting, use of open innovation, employment of services of advanced innovation teams and use of platform innovation systems.

Appendix

Kellongg’s model of operation

Kellongg’s model of operation employs themes in figure 1 above. The company fund its production, workforce and marketing strategies. Activities would include management of employees, production, logistic units, research and development teams and marketing units. The company further carries assessments to ensure that all operations go as planned. In its operation, kellongg wishes to impact positively on its customers and on the environment.

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