Essay On Kellogg's

Kellogg’s brands are brought to consumers in more than 180 countries and is continuously expanding to introduce their products to new markets geographically. For instance, Ireland has the largest per capita cereal consumption because cereal is very commonly eaten as a snack. In Mexico, 30% of all cereal consumption is done in the evening. Research also indicates that the elderly eat just as much cereal as kids do which is why markets such as the United Kingdom, Australia, and the US are imperative in order for Kellogg’s to sustain growth. In the emerging markets, Kellogg’s is popular as well hitting double digit growth in countries such as India, South Africa, and Brazil. The principal markets for Kellogg’s products include the United Kingdom, US, Latin America, Canada, Australia, and Asia. Kellogg’s therefore faces currency risk through transaction exposure, economic exposure, and translation exposure. The company is primarily exposed to fluctuations in cash flows related to

Over this period of time the currency did not fluctuate dramatically. The biggest decline occurred for a six day period spanning from March 29th to April 3rd. The range from the USD to British Pound was less than that of the Euro. The fluctuations ranged from .597 to .602 USD to pounds sterling. The ups and downs in the currency fluctuation never lasted more than a few days at a time which resulted in no significant change and no patterns could be drawn from Kellogg’s stock fluctuations. The USD to the Canadian dollar resulted in the most significant of changes occurring over the commonly used currencies. The range was anywhere from 1.08 to the high 1.23 USD to Canadian dollars. Between March 25th and April 11th the value of the USD to the Canadian dollar fell 16 times. Again, this change is currency value appeared to have no impact on Kellogg’s stock