External factor

Competitors
Hershey Nestle Cadbury Mars
1. Largest producer
in North America
6 business divisions Listed company Several business
units
2. Committed to
social
responsibility
program and
charity.
Worldwide recognition
and 63
rd
in Top Global
Brands.
market leader in
global
confectionary
industry
Leading brands in
the world
3. Ironic brands that
well known in
world such as
Kisses.
Enter organic segment
with projected sales
$24 billion by 2010.
Market share- 71
percent in India
and 53 percent in
Australia
Company
acquisition with
Wrigley company
4. Increase in
healthy food such
as dark chocolate
and low sugar.
Company acquisition
include medical
nutritional business
Revenue strong in
emerging market
Mars product are
sold in worldwide


Opportunities
1. Increase demand from the market
2. Ethics and Sustainability labor and environmental of organizations
3. New opportunities for marketing in media
4. Confectionery industry that will diversify consumers taste which will from gums
and jelly beans to chocolate product.
5. global market expands in value which approximately at $17.4 billion by 2010.
6. Chocolate had coverage for 55.8 percent of the market overall global value.
7. Products price point had caused the recession does not impact confectionary
products drastically.
8. The major 50 firms in the industry had control less than 40 percent of the market.
9. Mergers and acquisitions influenced market share and product portfolio in global
firms especially in confectionary industry
10. The drastic growth of organic foods products had become one of the fastest
growing sectors in United States with a projected value of $26.3 by 2011.
Threats
1. Slow on economic growth- high unemployment caused consumer cutting budget
on those unnecessary things.
2. Price fluctuations of cost in main ingredients such as Sugar. In U.S 2009, the
wholesaler sugar had increase up to 70percent.
3. Higher manufacturing cost due to increase in healthy food. More consumers
demand on that organic healthy food.
4. Obesity is increasing gradually and consumer aware about it.
5. Increase in fuel cost impact the shipping and distribution cost.
6. International wholesale sugar prices may reach 40 cents a pound.

Competitive Profit Matrix
Hershey Nestle Cadbury Mars
Critical success
factor
Weight Rating Weighted
score
Rating Weighted
score
Rating Weighted
score
Rating Weighted
score
Price
competitiveness
0.12 2 0.24 2 0.24 2 0.24 3 0.36
Global
expansion
organizational
structure
0.06 3 0.18 1 0.06 1 0.06 4 0.24
Employee 0.03 2 0.06 2 0.18 1 0.03 2 0.06
Technology 0.09 2 0.18 3 0.27 2 0.18 3 0.27
Product Safety 0.13 3 0.39 2 0.26 2 0.26 4 0.52
Customer
loyalty
0.07 2 0.14 3 0.21 2 0.14 3 0.21
Market Share 0.08 1 0.08 2 0.08 1 0.08 2 0.16
Packaging of
product
0.04 4 0.16 2 0.08 2 0.08 1 0.04
Advertising 0.09 3 0.27 1 0.09 2 0.18 2 0.18
Uniqueness of
product
0.08 2 0.16 2 0.16 2 0.16 2 0.16
Product image 0.08 2 0.16 2 0.16 2 0.16 2 0.16
Financial
position
0.12 4 0.48 2 0.24 2 0.24 3 0.36
Total 1.0 2.5 2.03 1.81 2.71


External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted
Score
Opportunities
1. Increase demand from the market 0.05 2 0.10
2. Ethics and Sustainability labor and
environmental of organizations
0.05 3 0.15
3. new opportunities for marketing in media 0.06 2 0.12
4. Confectionery industry that will diversify
consumers taste which will from gums and jelly
beans to chocolate product.
0.10 3 0.30
5. global market expands in value which
approximately at $17.4 billion by 2010.
0.05 3 0.15
6. Chocolate had coverage for 55.8 percent of
the market overall global value.
0.06 2 0.12
7. Products price point had caused the recession
does not impact confectionary products
drastically.
0.04 3 0.12
8. The major 50 firms in the industry had control
less than 40 percent of the market.
0.03 3 0.06
9. Mergers and acquisitions influenced market
share and product portfolio in global firms
especially in confectionary industry
0.07 2 0.14
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 3 0.15

Threats
1. Slow on economic growth- high unemployment
caused consumer cutting budget on those
unnecessary things.
0.07 2 0.14
2. Price fluctuations of cost in main ingredients
such as Sugar. In U.S 2009, the wholesaler sugar
0.10 3 0.30
had increase up to 70percent.
3. Higher manufacturing cost due to increase in
healthy food. More consumers demand on that
organic healthy food.
0.08 2 0.16
4. Obesity is increasing gradually and consumer
aware about it.
0.04 3 0.12
5. Increase in fuel cost impact the shipping and
distribution cost.
0.07 3 0.21
6. International wholesale sugar prices may reach
40 cents a pound.
0.08 2 0.16
Total 1.0 2.50