Famous Amos Essay Example

employees, ensuring that they comprehend their role in accomplishing it. In 2008, the company achieved its sales targets and expanded in Russia and China through acquisitions (Kellogg Company 2008). It experienced a 4% growth in cereal operations, a 9% growth in snacks operations, and an overall sales increase of 5% (Kellogg Company 2008).

The firm is confident it can sustain growth by expanding, innovating, and saving costs.

In 2008, the Kellogg Company generated $12.2 million in revenue and achieved an operating profit of $1.95 million (Kellogg Company 2008). Despite the challenging global economy, the company is confident in its ability to grow by addressing consumer demand for convenient foods and encouraging home cooking. To enhance profitability, Kellogg will focus on cost efficiencies and innovation throughout all aspects of its operations.

The company has several goals that are also supported by Famous Amos. These include expecting a sales growth of 3% - 5% in 2009, targeting a roughly 5% increase in operating profit in the same year, and aiming for annual cost savings of $1 billion by 2011. In addition to these goals, some corporate strategies for Famous Amos can be identified through the use of the Porter's Model, the Ansoffs Matrix, and the Expansion Method Matrix.

Porter's Strategy Michael Porter's 4 generic strategies, as described by Cruz (2006), include the following:
1. Cost-leadership: The goal here is to achieve lower total costs compared to competitors in order to appeal to a wide range of customers.
2. Differentiation: This strategy involves differentiating products from rivals to attract all customers.
3. Cost-focused: Building upon the cost-leadership approach, this strategy focuses on attracting buyers from a narrow segment.
4.

Differentiation-focused: This strategy targets niche customers by offering customized attributes that satisfy their specific demands.

Famous Amos employs the differentiation strategy by positioning its products as superior to others and charging premium prices. The company ensures that its cookies are made with the finest ingredients and are baked to perfection. Additionally, it sets itself apart from other cookie sellers by providing excellent gift-wrapping services.