Sweet Moment: Manegement Theory Practice and Application

Topics: Chocolate, Management, The Hershey Company Pages: 5 (1620 words) Published: September 6, 2010
Sweet Moments
April 25, 2010

Sweet Moments
Change is inevitable. Whether the changes are internal or external, companies that do not keep up with change will become unstable. The four functions of management are affected by these internal and external forces. In order for a business to succeed, the business must know change is occurring and what changes may occur in the future. With approximately 13,700 employees and net sales of $4 billion, The Hershey Company has identified theses internal and external factors and uses the four functions of management to remain a growing organization. For a company to be successful, management needs to take into account the different factors that may affect their goals. A useful acronym to remember is S.W.O.T., which stands for [internal] strengths and weaknesses, and [external] opportunities and threats (Bateman & Snell, 2009). A good company can use their strengths and opportunities to counteract their weaknesses and threats. A potential threat for The Hershey Company is the environment and growing conditions of cocoa. Cocoa is the primary ingredient in chocolate, and a loss of cocoa suppliers, or poor quality cocoa would hugely devastate the industry. The Hershey Company is aware of this external factor, and uses internal strengths to keep this threat from becoming a reality. The Hershey Company is a member of the World Cocoa Foundation, and has taken steps to preserve the ecosystem and start programs that will conserve the environment in which cocoa is farmed (The Hershey Company, 2010). This is just one of the many things Hershey’s has done to protect the company as well as the cocoa industry. By making a plan to be involved with the cocoa industry, and joining the World Cocoa Foundation, The Hershey Company has taken an active step in keeping a potential threat at bay. Leadership from both The Hershey Company and the World Cocoa Foundation will be required to keep these programs running. Monitoring and controlling is necessary to make sure the programs are running the way they should be. Technology and innovations are two major key players in the success of an organization. Being the leading producer of chocolate and non-chocolate products much planning is involved when deciding upon new technology and innovations. Hershey’s has remained untouched are the leader in chocolate technology and has been nonstop from the beginning. Hershey’s has several machines that are registered trademark and designed specifically to make Hershey’s products. Bateman and Snell (2009) explain that technological advances create new products and advanced production technique0 (p. 55). For example, Hershey’s inspiration to add the “plume” on the Hershey’s kiss was derived from machine wrapping technology and was trademarked in 1921 (The Hershey company, 2010). Hershey’s sweet innovations have deemed very successful for Hershey’s. Hershey’s continues to offer the consumer exactly what they are craving. In 2010 Hershey plans to release eight new products into the market that are new and unique to the consumer. Many of Hershey’s older products will be will reintroduced in many different forms such as Almond Joy and York Peppermint Patties pieces, Hershey’s and Reese’s Peanut Butter Drops, and Kit Kat Dark chocolate (The Hershey company, 2010). These products are expected to have a very positive reaction from consumer. A great deal of planning and organizing is involved in the idea of creating and launching new products. Hershey has many competitors and must make plans to stay ahead of the market with planning and leading a successful plan while offering the custom top notch products; “through unceasing technological modernization, strategically astute acquisitions and continued new product developments”(The Hershey company). Globalization eliminates the boundaries between the countries and provides new opportunities for business. Globalization pressures societies to become more alike,...
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