| Course | BUSI 400 Strategic Planning/Business Policy (BUSI400) |
|---|---|
| Module/Week | 5 |
| Assignment | Individual Assurance of Learning Exercise 2 |
| Paper type | Strategies in action exercise |
| Length | about 537 words, 2 double-spaced pages plus title page and references. Course guide: an individual written exercise applying the module/week's chapter on types of strategies to a real organization |
| Format | APA 7 student paper |
| Points | 125 |
| School | Liberty University Online |
| Program | BS in Business Administration |
| Where it sits | Module/Week 5 in Liberty's published BUSI 400 course guide; current sections can differ |
| Updated | October 2026 |
Free sample paper for BUSI 400 Week 5
From Chocolate to Pretzels: Classifying and Judging Hershey's Growth Strategies
[Student Name]
School of Business, Liberty University
BUSI 400: Strategic Planning/Business Policy
Individual Assurance of Learning Exercise 2
[Instructor Name]
[Date]
The textbook's exercise and cohesion case are not public, so a strategies-in-action exercise on a public company, The Hershey Company, stands in for them; company facts come from its filings and public announcements, and the research and textbook cited are real.
From Chocolate to Pretzels: Classifying and Judging Hershey's Growth Strategies
Classifying Hershey's Strategies
| Strategy type | Hershey example |
|---|---|
| Market penetration | Price increases and steady advertising behind core brands |
| Product development | New seasonal items, flavors and lower-sugar products |
| Market development | Selective growth in international markets |
| Related diversification | Acquisition of Amplify Snack Brands (SkinnyPop) in 2018 and two pretzel makers in 2021 |
| Defensive (retrenchment) | Cost-saving and productivity programs in response to cocoa costs |
David and David (2017) describe market penetration as seeking a larger share for present products in present markets through greater marketing effort, and product development as improving or modifying products to increase sales. Hershey uses both continuously. The most consequential recent choice, however, has been diversification into salty snacks, which now gives the company a second category alongside confectionery (The Hershey Company, 2026).
Integration Strategies Considered
Chapter 5 also describes integration strategies, and they are worth weighing because of Hershey's cocoa problem. Backward integration, gaining ownership or greater control over suppliers, might seem a natural answer to volatile cocoa costs. In practice, cocoa is grown on millions of small family farms, and owning plantations would bring political, social and operational risks far outside Hershey's experience. Closer partnerships and long-term purchase programs with cooperatives offer some of the same control at lower risk. Forward integration, owning more of the channel to consumers, exists on a small scale through the company's branded attractions and retail stores, which build the brand more than they sell volume. Horizontal integration, acquiring a direct chocolate competitor, would face antitrust scrutiny and would deepen rather than reduce cocoa exposure. These limits help explain why related diversification became the company's main growth path.
Judging the Move Into Salty Snacks
Research supports related diversification over the alternatives. Palich et al. (2000) reviewed three decades of studies on diversification and performance and found an inverted-U relationship: firms with moderate, related diversification tended to perform better than both single-business firms and highly diversified firms with unrelated businesses. Salty snacks fit the definition of related diversification for Hershey. They are sold in the same stores and aisles, appeal to many of the same consumers and benefit from Hershey's relationships with retailers and its marketing skills. They also reduce dependence on cocoa, the weakness the internal assessment identified. Pretzels do not need cocoa, and in 2025 that mattered more than any synergy on the shelf.
The move still has to be executed well. Rumelt (1991) found that differences among business units within an industry explained much more of the variation in profitability than differences between industries. Entering an attractive category is not enough; Hershey must run its snack brands as well as the best salty snack companies run theirs, which means mastering different manufacturing, supply and promotion practices. Salty snacks have their own risks as well: competition from very large snack companies, heavy promotional spending and lower brand loyalty than in chocolate. Hershey's acquired brands are smaller than the category leaders, so the company must decide whether to invest heavily enough to build them or to accept a modest position. The internal assessment rated the snack portfolio as a strength, but only a moderate one, which suggests the strategy is promising rather than proven.
Recommendation
Hershey should continue related diversification and product development while avoiding unrelated diversification, which research suggests would dilute management attention. Specifically, it should grow its salty and better-for-you snacks through internal development and small, related acquisitions; use product development to offer lower-cocoa treats that keep the taste customers expect; and pursue market development only in countries where its brands already have a foothold. Defensive cost programs should continue, but cutting brand investment to protect short-term margins would weaken the very resources that make the strategy work.
References
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.). Pearson.
Palich, L. E., Cardinal, L. B., & Miller, C. C. (2000). Curvilinearity in the diversification-performance linkage: An examination of over three decades of research. Strategic Management Journal, 21(2), 155-174. https://doi.org/10.1002/(SICI)1097-0266(200002)21:2<155::AID-SMJ82>3.0.CO;2-2
Rumelt, R. P. (1991). How much does industry matter? Strategic Management Journal, 12(3), 167-185. https://doi.org/10.1002/smj.4250120302
The Hershey Company. (2026). Annual report on Form 10-K for the fiscal year ended December 31, 2025. U.S. Securities and Exchange Commission. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000047111&type=10-K
What the BUSI 400 Week 5 instructions ask
Chapter 5 of David and David, which describes the types of strategies firms pursue, from integration and intensive strategies to diversification and defensive strategies, is the reading for Module/Week 5 with one presentation. Two Assurance of Learning exercises are due: the second individual exercise, worth 125 points, and the third group exercise, worth 62.5. This sample covers the individual exercise. The exercises apply the chapter's categories to the cohesion case; since the cohesion case is unavailable publicly, the sample uses a listed company whose strategic moves are documented in its filings and announcements, so each classification can be checked.
How this BUSI 400 Week 5 example is built
Classification comes first, then judgment. A table sorts Hershey's recent actions into the chapter's strategy types with an example of each. The analysis then focuses on the most consequential choice, the move into salty snacks, and evaluates it against research on diversification and performance. A second study adds a caution about execution. The exercise ends with a recommendation on which strategy types Hershey should emphasize next and which it should avoid, given the cost pressures identified in earlier exercises. The writing keeps the chapter's vocabulary throughout, so the instructor can see each concept applied correctly. The recommendation states which strategies to avoid as well as which to pursue. Each strategy type in the table is matched to a dated example from the company's history.
BUSI 400 Week 5 grading rubric: where the points go
The grader checks that each Hershey move is placed in the right category from chapter 5, such as market penetration, product development or forward integration, that the reasoning for every label and recommendation holds up, and that the writing is clear with sources in APA style. Correct use of chapter terms earns credit, for example distinguishing related from unrelated diversification and market penetration from market development, and for evaluations supported by evidence rather than by the company's own press releases. A recommendation that weighs strategies against the firm's strengths and weaknesses, as identified in the internal and external assessments, shows the integration the capstone course is designed to build. Clear reasons for each classification matter more than the number of strategies listed.
BUSI 400 Week 5 help: mistakes that cost points
List the company's recent strategic moves from its annual report and news releases, then match each to a strategy type from the chapter, giving the reason for each match. Pay attention to the line between related and unrelated diversification, which depends on shared resources such as brands, distribution or manufacturing. Use research on diversification and performance to judge the most important move. Connect your judgment to the earlier internal and external assessments. End with a recommendation about which strategies to pursue and why. Keep the chapter's terms consistent throughout. Check the company's recent news releases for acquisitions or divestitures that the annual report may describe only briefly, and classify those too.
Related BUSI 400 sample papers
Other BUSI 400 weeks
- BUSI 400 Week 1: Individual AOL Exercise 1
- BUSI 400 Week 2: Group AOL Exercise 1
- BUSI 400 Week 3: Group AOL Exercise 2
- BUSI 400 Week 4: Individual Case Analysis 1
- BUSI 400 Week 6: Group Case Analysis 1
- BUSI 400 Week 7: Individual Case Analysis 2
- BUSI 400 Week 8: Group Case Analysis 2
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BUSI 400 Week 5 questions, answered
What is BUSI 400 Individual Assurance of Learning Exercise 2?
Individual Exercise 2, for 125 points, sorts the cohesion case company's moves into the strategy types of David and David's fifth chapter and recommends next steps.
Where can I find a free BUSI 400 Week 5 sample paper?
A complete BUSI 400 Week 5 exercise classifying Hershey's growth strategies and judging its move into salty snacks is available on this page.
What is related diversification?
Entering a new business that shares resources with the existing one, such as brands, distribution channels, technology or customers, as when a candy maker acquires snack brands sold through the same stores.
Does diversification improve company performance?
Thirty years of studies, reviewed together, showed an inverted-U pattern: related diversification tended to perform better than both narrow focus and unrelated diversification.
What else is due in BUSI 400 Module/Week 5?
The third group Assurance of Learning exercise, worth 62.5 points with peer evaluations, along with chapter 5 of David and David and one presentation.
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