You will begin by creating a SWOT and a BCG matrix. For the SWOT, follow Steps 1

Question

You will begin by creating a SWOT and a BCG matrix. For the SWOT, follow Steps 1-2 of the Learning Exercise in your text. Then, prepare a SWOT Matrix for Hershey’s Company. For the BCG, use the information in the Learning Exercise in your text to prepare a BCG matrix for Hershey locating each division where you believe it represents its position relative to market share and growth. When complete with both exercises, write a short narrative (one page or less, double space) of your key conclusions from (1) your SWOT analysis of Hershey, (2) your BCG work on Hershey. In addition, include your conclusions on the Hershey’s Company as a result of its position in the BCG and the results of SWOT. Make clear recommendations for Hershey’s Company based on integrating the work from the above models.

Explanation / Answer

Strengths:

Weaknesses:

Opportunities:

Threats:

BCG matrix:

With the help of BCG matrix we would try to categorize Hershey’s product lines into either of 4 categories cash cows, dogs, stars and ?.

Cash Cows: which generate max revenues and guzzle appropriate costs

Confectionary products

Milk Chocolates

Dogs: They do not generate enough return on the investment as compared to others but may be need just to keep the company’s presence in the segment.

Gums

Stars: They are second to cash cows in revenues but are at par in terms of costs

Mouth freshners

?:They hold a lot of potential but need lot of resources to be grown to a cash cow or a star

Snacks

Few key recommendations:

We suggest withdrawing from the markets which do not hold a long term (5 year) promise of humungous revenues and net profits and thus concentrate on the geographies where the present and next 5 years is.

Entering the snacks and cold drinks segment is vital to grow sales by using the already present expertise in the food segment and the enormous market size of the segment (a simple logic is everyone either loves sweet or salt)

Hershey should evaluate the natural disasters history and gradually move facilities to safer geographies.

Hershey should spend to backward integrate to growing cocoa, even genetically modifying cocoa so that it can be grown closer home so avoid huge dependency on a single ingredient.

Sources:

https://www.marketing91.com/swot-analysis-hersheys/

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