environment, (2) the neutral environment, (3) the competitor environment, and (4) the company environment. Factors associated with these environments are discussed in the following sections. The Situational Environment
The future success of Kellogg's organizational strategy has been brought into question by (1) changes in consumer characteristics, and (2) changes in societal attitudes toward nutrition. Changes in consumer characteristics are related to demographic changes in the American population which affect the ready to eat cereals market. Changes in societal attitudes toward nutrition were reflected in pressures related to sugar content in ready to eat cereals, and children oriented advertising, which were being directed at the producers of ready to eat cereal. These pressures are being exerted by (1) government, (2) the medical community, (3) social action groups, and (4) concerned parents.
Continuing pressures are applied by members of the medical community, social action groups, and concerned parents to persuade the cereal producers to reduce the sugar content of their cereal products. The pressures being applied by these parties on the industry are also directed toward the federal government, where implementation is desired for either one or both of the following actions: (a) require ready to eat cereal manufacturers to reduce the sugar content of their products; and (b) require ready to eat cereal manufacturers to clearly label their products with sugar content information.
Continuing pressures are applied by members of social action groups and concerned parents to persuade the federal government to restrict ready to eat cereal manufacturers in the conduct of advertising campaigns directed at children. These pressures are also directed toward the cereal manufacturers; however, the greatest emphasis is placed on persuading government to act.
The greatest demand for ready to eat cereal comes from the un...