TWO KEY LESSONS LEARNT FROM THIS CASE
Hershey Company is famous known for being the biggest manufacturer of chocolates and confectionery products in North America and grocery products in over 60 countries worldwide. In 2009, Hershey sales up to 3.23 percent. Advertising expenses increased by 46 percent as the company continued to promote iconic brands such as the Hershey Kiss and Reese’s products. Due to lower commodity prices, the company plans to discontinue their Cacao Reserve brand as well as their Starbucks chocolate partnership. The company also plans to close their online gift business. The company expanded its global presence via joint ventures in china and India.
From this case, we found two key lessons as following:
(a) The first lesson is about the important of expanding to global market
(b) The second lesson is about the importance for the firm to keep developing customer preferences.
It is important for company to focus on how to formulate global product strategy to penetrate growing international markets. Therefore, Hershey should come up with new strategies in finance, marketing and production department to complete globally and to increase the customer satisfaction and market share.
Since we could not find a vision statement of Hershey company then we suggest a vision as below:
“Achieving consumers needs which making chocolate more healthy, delicious and delightful for life” From our opinion, this vision is clear in term of to help the company to see where the company is going on in the future which the company more concern about customer need and offer the product of natural and organic chocolate for health. According to researchers led by Natalie Rose, MD, of the University of California at San Diego. The result suggests several possible relationships between eating chocolate and wellness, it helps to increase the level of specific neurotransmitters in our brain that in turn promotes feeling of happiness and help to raise the good hormone that act as an ati-depressant. Therefore, It captures the importance not only for healthy but also the happiness of eating chocolate.
The current mission of the Hershey company is
“Bringing sweet moments of Hershey happiness to the world everyday”
To our stakeholders, this means:
Consumer: Delivering quality consumer driven confectionery experiences for all occasions. *
Employees: Winning with an aligned and empowered organization while having fun. *
Business Partner: Building collaborative relationships for profitable growth with our customers, suppliers, and partners. *
Shareholder: Creating sustainable value.
Communities: Honoring our heritage through continued commitment to making a positive difference.
The current mission consists of the following characteristics: 1. Customer
2. Concern for survival, profitability, growth
5. Concern for public image
6. Concern for employees
Mission statement is often the most visible and public part of the strategic management process. The current mission is sufficient to remind the company on their attitude and outlook. However, it is important to include the nine characteristic, as mission statement would be more effective. From our analysis, the current mission lacks of another three characteristics, which are products, market, and technology. These four characteristics are important for the company in the long-term development.
Thus, we think that the current mission can be improved as follows:
“Bringing sweet moments of chocolate Hershey happiness to the world every day”
To stakeholders, this means:
Consumer: Delivering quality consumer with the lastest technology to drive experiences for all occasions. Employee: Winning with an aligned and empowered organization while having fun. Business Partners: Building collaborative relationships for...
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