QSPM Matrix

Key Internal Factors Weight

Strategic Alternatives
create fast track
programs for
developing new
products from
employee ideas
new partnerships
with non-profit
organisation sales
(AS) (TAS) (AS) (TAS)
Strengths
Brand recognition
- Largest producer of chocolate in North
America.
- Consumer good will
0.10 1 0.10 2 0.20
2. Strategic Acquisitions 0.05 2 0.10 2 0.10
3. Human Resources
- Employee empowerment
- increase in employee benefits
0.07 4 0.28 1 0.07
4. Research and development
- expand product line.
- Premium line with high quality of dark
chocolate.
- Antioxidant will be emphasis in Hersheys
product.
0.04 4 0.16 0 0
5. Hersheys involved actively in organization
that involved environmental and charity.
0.04 2 0.08 4 0.16
6. Reduction of cost due to Hersheys closed
their Reading Pennsylvania, plant in 2009,
eliminating 300 jobs.
0.06 0 0 0 0
7. Reduction of 1,500 positions over next
three-year period due to the global supply
initiatives.
0.05 3 0.15 0 0
8. changing in product packaging have
showed that lighter material and less waste.
0.05 3 0.15 1 0.05
9. Hersheys plant to close online gift business
which featured seasonal products and gifts
that could be personalized by consumer.
0.04 4 0.16 0 0
Weaknesses
1. Diversity among the suppliers and shippers. 0.12 0 0 4 0.48
2. Advertising expenses increased 0.05 0 0 0 0
3. Hershey plan to discontinue their Cacao
Reserve as Starbucks.
0.11 1 0.11 3 0.33
4. Declined of Hershey other assets due to the
unfavorable in economy to $151,561 in 2008
from $540,249 in 2007.
0.08 2 0.16 2 0.16
5. Switch of consumer to lower price
products.
0.04 1 0.04 1 0.04
6. The company long term debt increased
from $1,279,965 in 2007 to $1,505,954 in
2008.
0.07 0 0 0 0
7. Total charges to Hersheys Global Program 0.03 1 0.03 1 0.03
have been forecasted downward from $665
million to $640 million.
Subtotal 1.00 1.52 1.62
Opportunities
1. Increase demand from the market 0.05 4 0.20 2 0.10
2. Ethics and Sustainability labor and
environmental of organizations
0.05 4 0.20 1 0.05
3. new opportunities for marketing in media 0.06 2 0.12 1 0.06
4. Confectionery industry that will diversify
consumers taste which will from gums and
jelly beans to chocolate product.
0.10 0 0 0 0
5. global market expands in value which
approximately at $17.4 billion by 2010.
0.05 0 0 0 0
6. Chocolate had coverage for 55.8 percent of
the market overall global value.
0.06 0 0 2 0.12
7. Products price point had caused the
recession does not impact confectionary
products drastically.
0.04 1 0.04 1 0.04
8. The major 50 firms in the industry had
control less than 40 percent of the market.
0.03 1 0.03 2 0.06
9. Mergers and acquisitions influenced market
share and product portfolio in global firms
especially in confectionary industry
0.07 1 0.07 3 0.21
10. The drastic growth of organic foods
products had become one of the fastest
growing sectors in United States with a
projected value of $26.3billion by 2011
0.05 0 0 1 0.05
Threats
1. Slow on economic growth- high
unemployment caused consumer cutting
budget on those unnecessary things.
0.07 4 0.28 1 0.07
2. Price fluctuations of cost in main
ingredients such as Sugar. In U.S 2009, the
wholesaler sugar had increase up to
70percent.
0.10 0 0 0 0
3. Higher manufacturing cost due to increase
in healthy food. More consumers demand on
that organic healthy food.
0.08 2 0.16 1 0.08
4. Obesity is increasing gradually and
consumer aware about it.
0.04 0 0 0 0
5. Increase in fuel cost impact the shipping
and distribution cost.
0.07 1 0.07 3 0.21
6. International wholesale sugar prices may
reach 40 cents a pound.
0.08 0 0 0 0
Subtotal 1.0 1.17 1.05
Grand Total 2.0 2.69 2.67

Based on the matrix above, we can note that the sum total attractiveness scores of 2.69 versus 2.67
which is very close indicator. The higher number indicates that the business should create fast track
programs for developing new products from employees ideas.