Hershey's Case

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  • Topic: Hershey, Pennsylvania, Hershey Entertainment and Resorts Company, Chocolate
  • Pages : 9 (1878 words )
  • Download(s) : 90
  • Published : May 16, 2013
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Summary
Hershey’s company first of all they produce candies at America. In America they have good repute of their candies. Hershey’s decide in 1894 to produce chocolate with coating for his caramel. Hershey’s is the largest producer of chocolate in North America. It was founded in 1894 by Milton Hershey’s. The key product of company is Hershey’s Hershey kisses, resses Jolly and Raucher. In 1900 company start producing milk chocolate in bass wafers and other shapes. They operate their operation around the world. At Hershey’s there are 12800 full time and 1600 part time employees. Company projects a reduction of 1500 position over the next three year project. Hershey’s sales increase by 3.8% 2007 to 2008. The company net income was in 2008 311,405,000 compared with 214,154,000 in 2007 it was increased by 0.6877. Hershey’s has five operating segment.

* United States
* Canada
* Mexico
* Brazil
* Other International Location
At United States Hershey’s has 14.4% sales in 2008. Nestle, Cadbury and Mars are strong competitors in United States and outside of United States. Hershey’s announce joint venture with Godrej Beverages in India. Hershey’s was also acquiring other companies which is produce gums, beverages and biscuits etc.

S.W.O.T Analysis
Strength
1. Hershey’s established school for orphan boys and do the social responsibility and create good public image. 2. They have strong Research and Development department.
3. Operate in 50 countries with 60 brands names.
4. Powerful partnership and joint venture.
Weakness
1. Decrease sales in Asia market.
2. Peoples are more diet conscious and they need low fat in chocolates. 3. Lower profit margin than Competitors.
Opportunity
1. Built theme park in other Countries like China and India. 2. Concentrate on powerful communication with customers and suppliers. 3. Company has a lot of different market area because of increasing in global trade. Threat

1. Nestle, Mars and Cadbury are strong Competitors.
2. Price of sugar and milk will increase.
3. Loss market share in other countries due to poor communication.

EFE Matrix for a Hershey’s
OpportunityWeightRatingScore
1. Built theme park in other countries.0.3020.60
2. Concentrate on powerful communication0.1540.6
with customer and suppliers.
3. Company has a lot of different market0.0530.15
area because of increasing in global trade.
Threat
1. Nestle Mars and Cadbury are strong competitor0.2530.75 2. Price of sugar and milk will increase 0.1020.20 3. Loss market share in other countries due to poor0.1520.30 communication

_________________________
12.6
IFE Matrix for a Hershey’s
StrengthWeightRatingScore
1. Hershey’s established school for orphan boys 0.730.21 and do the social responsibility and create good public image.
2. They have strong Research and Development0.1030.30 department.
3. Operate in 50 countries with 60 brands names.0.2120.42 4. Powerful partnership and joint venture. 0.1230.36 Weakness
1. Decrease sales in Asia market.0.0520.10
2. Peoples are more diet conscious 0.1510.15
and they need low fat in chocolates.
3. Lower profit margin than Competitors.0.3030.9.
________________________
12.43

Competitive Profile MatrixHershey’s
WeightRateScore
Advertisment0.320.6
Mangment0.0530.15
Finanicail Postion0.130.03
Customer Loyalty0.340.12
Global Expension0.1520.30
Market Share0.230.6
____________ _____________
12.07
Competitive Profile MatrixCadbury
WeightRateScore
Advertisment0.330.09
Mangment0.0520.10
Finanicail Postion0.120.2
Customer Loyalty0.310.3
Global Expension0.1520.30...
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