Hershey: Corporate Structure

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III.INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES

A.CORPORTATE STRUCTURE

1.Currently, Hershey Company has a divisional organizational structure. Hershey is a large company with several products and well-known brands such as Hershey's Snack Barz, Ice Breakers Chewing Gum & Mints, Reese’s etc. Their divisional structure facilitates Hershey’s goal of expanding geographically. Hershey’s U.S. Commercial Group, Global Growth and Innovations Group, and International Commercial Group all play separate roles in achieving strategic and growth objectives.

a.Hershey’s decision making authority is centralized as decisions are made by high level management and are communicated down to the remainder of the organization. Hershey’s Board of Directors (majority independent directors) and Senior Management Team are responsible for making decisions for the company. b.The corporation is organized based on geography and functions. Hershey has a main corporate head-quarter in Pennsylvania where they make the majority of their operational and strategic decisions. They also have several manufacturing plants throughout and outside of the nation. Hershey and Hershey Entertainment and Resorts (a separate corporation) also has a zoo, amusement parks, hotels, etc. located in Pennsylvania, New York, and Chicago for visitors to enjoy.

2.Corporate structure is clearly understood by everyone in the organization using a top down approach. Hershey has a Corporate Governance Guideline, Code of Ethical Business Conduct, Training, and several other guidelines for directors and top executives to utilize. Such company policies and procedures are communicated and implanted throughout the entire organization.

3.Hershey’s structure and organization is consistent with their goals and objectives. Their corporate structure is organized to meet Hershey’s goal of growth and geographic expansion.

4.Mars, one of Hershey’s main competitors, also operates on a global level. Mars has a...
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