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BCG, IE & Grand Matrx

The document discusses several strategic analysis tools - the Boston Consulting Group (BCG) Matrix, Internal-External (IE) Matrix, and Grand Strategy Matrix - that cannot be applied to Hershey Company due to a lack of detailed financial reporting by division. Specifically: 1) A BCG Matrix analysis is not possible as Hershey does not provide enough financial data separated by division to assess relative market share and industry growth rates. 2) An IE Matrix also cannot be done as financial statements do not include full sales and income data by division. 3) Application of the Grand Strategy Matrix places Hershey in the quadrant for strong competitive position but slow industry growth, suggesting diversification into new markets and

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377 views2 pages

BCG, IE & Grand Matrx

The document discusses several strategic analysis tools - the Boston Consulting Group (BCG) Matrix, Internal-External (IE) Matrix, and Grand Strategy Matrix - that cannot be applied to Hershey Company due to a lack of detailed financial reporting by division. Specifically: 1) A BCG Matrix analysis is not possible as Hershey does not provide enough financial data separated by division to assess relative market share and industry growth rates. 2) An IE Matrix also cannot be done as financial statements do not include full sales and income data by division. 3) Application of the Grand Strategy Matrix places Hershey in the quadrant for strong competitive position but slow industry growth, suggesting diversification into new markets and

Uploaded by

lionallee
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Download as DOCX, PDF, TXT or read online on Scribd
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The Boston Consulting Group (BCG) Matrix

Some companies do not disclose financial information by segment, therefore a BCG portfolio analysis is
not possible by external entities. In Hershey Company case study, we found out that Hershey Company
do not have enough detail in financial statements that separated by different division to conduct Boston
Consulting Group Matrix (BCG). This is because to conduct a BCG Matrix, the company need to portray
differences among divisions in term of relative market share position and industry growth rate.
Therefore, Hershey Company is not possible to show the BCG Matrix base on the case study alone.
Internal-External Matrix (IE)
The IE Matrix is similar to the BCG Matrix in that both tools involve plotting organization divisions in a
schematic diagram. In the case of Hershey Company the BCG Matrix cannot be performed same goes to
the IE matrix as the companies do not require more information about divisions. On the other hand,
Hershey Company could not locate it full information of their sales and income in their financial
statements to conduct the Internal-External Matrix (IE). Hence, it is not possible to identify the Internal-
External Matrix (IE) in Hershey Company.
Grand Strategy Matrix


2.Market Penetration
1. Market Development 3. Product Development
2. Market Penetration 4. Forward Integration
3.Product Development 5.Backward Integration
4.Horizontal Integration 6. Horizontal Integration
5. Divestiture 7. Related Diversification
5. Liquidation
1. Retrenchment
2. Related Diversification 1. Related Diversification
3. Unrelated Diversification 2. Unrelated Diversification
4. Divestiture 3. Joint Ventures
5. Liquidation
Rapid Market Growth
Quadrant II Quadrant I
1. Market Development
Strong
Competitive
Position
Slow Market Growth
Weak
Competitive
Position
Quadrant III Quadrant IV
The Grand Strategy Matrix of Hershey Company show that the company is in Quadrant IV. In Quadrant
IV business Hershey Company have a strong competitive position but are in a slow- growth industry.
Hershey has the strength to launch diversified programs into more promising growth areas in
developing countries. The Hershey Company also has characteristically high cash-flow levels and limited
internal growth needs as the result of 86% market share derived from operations in America. Hershey
Company can often pursue related or unrelated diversification successfully. Therefore, Hershey needs to
create new products with in the confectionery market so that to increase their market share. Hershey
Company may pursue on forming joint ventures with companies in other countries and also reducing the
costs of their products.

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