Case Study-Hershey

Topics: Chocolate, The Hershey Company, Hershey, Pennsylvania Pages: 23 (3716 words) Published: November 16, 2010

Think of Hershey Food Corporation and chocolate comes immediately to mind. Hershey is the leading manufacturer of chocolate in North America but that is not all what Hershey is all about.

Considering the humble beginnings of its founder, Milton Hershey, Hershey Food Corporation’s success is as sweet as the chocolates it produces and as lovely as the candies it offers its customers.

But before gaining its sweet success, it had undergone business dilemma like bankruptcy. But due to good governance, it was able to turn this dilemma to strengths. Its growth in its local markets can be described to be vast. In a few years of establishment, it had large acquisitions of different companies which gave them the opportunity to diversify product brands. No wonder why it had the largest market share in North America.

But this led to criticisms that Hershey became contented only in operating domestically. Its competitors had already started growing in the international market but Hershey enjoys its advantages in the domestic setting.

These facts had led to the perfection of this study. It aimed to analyze why Hershey enjoys being the market leader in its home country and also analyze its strengths and weaknesses as much as the opportunities and threats that surround it, to asses it’s potential capability to operate internationally.


Hershey Food Corporation is the leading and the largest producer of quality chocolate in North America. It had grown from one-product, one-plant operation in 1894 to a $4.4 billion company producing an array of quality chocolate, non chocolate, and grocery products. The company markets Confectionery and grocery products in over 60 countries with 5o brand names. But despite of these, Hershey remains inexperienced, ineffective, and uncommitted in markets outside the United States, Mexico and Canada.

This study focuses on how Hershey starts to establish itself internationally and expand its operation in potentially untapped countries like the Asian and European countries.

The study includes analysis of Hershey Food Corporation with the aid of the different matrixes which are part of strategic management.

We had chosen three alternative strategies in this study namely: Market Development, Product Development, and Horizontal Integration by Acquisition.

Base on the result of the study, we recommend implementing the Market development Strategy

Hershey Foods Corporation, the largest North American snack food maker's origin dates back to the 19th century. Since then, the company has concentrated on producing a wide variety of chocolates to suit the customers' taste. By 1901, the chocolate industry in America was growing rapidly. Hershey’s sales reached $ 662, 000 that year, creating the need for a new factory. The new factory provided a means of mass producing a single chocolate product. In 1927, the Hershey Chocolate company was incorporated under the law of the state of Delaware and listed on the New York Stock Exchange. That same year, 20 percent of Hershey’s stock was sold to the public. Between 19340 and 1960, Hershey went through rapid growth. The name “Hershey” became a household word. The legendary Milton Hershey Died in 1945. In 1960s, Hershey acquired the H.B Reese Candy Company, which makes Reese’s Peanut butter cups, Reese’s pieces, and Reese’s Peanut Butter Chips. Hershey also acquired San Giorgio Macaroni and Delmonico Foods, both pasta manufacturers. In 1968, Hershey Chocolate Corporation changed its name to Hershey Food Corporation. Between 1976 and 1984, William Dearden served as Hershey’s Chief Executive Officer. He diversified the company to reduce its dependence on fluctuating cocoa and sugar prices. In the 1970s, Hershey acquired Y&S Candy Corporation, a manufacturer of licorice-type products. Hershey...
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