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Question 2: Suggest appropriate aims and objectives for a small,medium and large
business
AIM OBJECTIVE
Small Business To survive and find profits in the To make 15% return on
market investment
Medium Business To maximize profits and growth To achieve €12 million sales in
to expand their current business the first year
operation and current market
share
Large Business To achieve external growth such To grow by 20% every year for
as taking over their competitors the next three years
in the market
Question 4: Consider the decision taken by Kellogg’s to opt for product development.
Suggest a way which it could have diversified instead. Justify your answer.
Both healthy and convenience foods were in a strong position in the market for
Kellogg's. Nutri-Grain was the brand worth rescuing as it fitted well with its main
objectives and aims. With the Ansoff's Matrix' help, Market Penetration was the most
reasonable and best alternative for the given situation.
If Kellogg's has to undergo diversification, the most possible and most likely
option for growth is to make an acquisition of a product line, such as a manufacturer of
quality oats. This diversification is justified because the strength of Kellogg's is its channel
or distribution management.