Question

How did this individual come up with the weight the rating and the weighted score of Hershey's nestle and Mars

The main competitions for Hershey's are Mars and Nestle. All the is companies are big in the chocolate and candy market. d Competitive profile metrics Below is a (Pm compcouson for these 3 fiums": Hershey Nestle Mars Critical Success factors weight Rating Sorel & S, e a s Market shave 0.2s 4 1 2 0. 5 3 0.75 No. of employees on 2 لي S04 ما sam 02 0.22 0.22 0.3 م o.11 employee fee Revenue 0.48 کر 0.36 M Net Income 4 0.6 دم m لیا orus angin OS 0.6 Io.us 0.36 0.24 Market Capitalisation ons % Orending margin Earnings per share 0.12 s - 3.54 3.01 2.62 Total

Answer 1

The Competitive Profile Matrix (CPM) identifies Hershey’s competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position. Hershey’s main competitors are Nestlé and Mars. The critical success factors that make up the CPM are advertising, product quality, price competitiveness, management, financial position, customer loyalty, E-commerce, and variety of product line. These factors are weighted according to importance and must total 1, and each company is rated on whether the factor is a strength or weakness (1=major weakness…4=major strength). The weight is multiplied by the rating to tally the score, and scores for each company are totaled. Hershey has significantly higher scores in advertising, product quality, and customer loyalty. However, Nestle dominates in the areas of price competitiveness, global expansion, and variety of product line. Mars is also similarly close in scores to Hershey and has an advantage in the area of E-commerce. Hershey’s weighted score is 3.54, Nestlé is 3.01, and Mars is 2.62. These numbers do not necessarily mean that Hershey is not as good as Mars, but it can be used so that Hershey can focus on what needs to be done to gain competitive advantage in this specific industry.