Question

What quadrant does the National Beverage Corp. lie on the Grand Strategy Matrix? Explain why you chose this selection.

Answer 1

The National Beverage Company is the fifth largest company in the United States in terms of manufacturing capacity and sales revenue of soft drinks and related products. It has an annual revenue of ~ $ 827 million in 2017 and a net income of ~ $ 107 million in the same year. Thus it has got a strong competitive position in a fairly matured industry as the industry growth is expected to be less than 10% going forward.

Thus the appropriate position for the company is Quadrant 4 as it has strong competitive position in a relatively slow growing market. And further growth can occur through joint ventures and related/unrelated diversifications.