Hershey Corporate Culture

Topics: Chocolate, Supply chain, The Hershey Company Pages: 8 (2435 words) Published: May 31, 2012
This section of the strategic environment is a realistic analysis of Hershey’s internal resources. The following internal traits portray a resource-based view of Hershey’s core strengths: COMPETITIVE ADVANTAGE:

The market share is increasing globally. Customer loyalty is very low. Websites are increasing in quality and ease for all users. HERSHEY’S offers many unique products and services to many different kinds of customers. By offering so many distinct products and services, HERSHEY’S is able to achieve a competitive advantage. STRATEGIC ANALYSIS

Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". * Hershey’s corporate level strategy is focused intently on growth and capitalizing on the diversification of its brand in the global market. INTERNAL GROWTH ANALYSIS:

To reduce production and operating costs; improve efficiency (to consolidate and reconfigure its production facilities) MEASURES:
To reduce production costs and improve efficiency, the company has launched a major restructuring effort with plans to close plants, eliminate jobs, build a factory in Mexico, and outsource some chocolate production. This restructuring effort will reduce the number of production lines by more than one-third, would help it enhance its manufacturing, sourcing, and customer service capabilities. (Page 8) * Close down its California and Canada-based plants

* Outsource the manufacture of less profitable items
* Build a factory in Mexico (expected to handle 10% of its production volume by 2010) * Net loss of 1500 jobs (11% of the total 14000 jobs)
Page 7: ‘The long-term benefits will include a significant, sustainable increase in investment behind Hershey’s iconic brands and new product innovation, as well as targeted, profitable international expansion’. EXTERNAL GROWTH ANALYSIS:

To restore momentum within the U.S
* Our top priority has been to restore momentum within the U.S and to stabilise U.S. business market place performance. * Concentrate efforts on sharpening messaging for portfolio management, sustainable innovation, investment in selling capabilities and improving marketing and other spending ROI. ‘Markedly higher brand-building support, including advertising, quality merchandising, enhanced retail coverage, and new chocolate products within the premium and trade-up segments will enable us to achieve this goal’ STRATEGY # 2:

To achieve success
To achieve success, The Company is now focused on improving margins in the long term, which they hope to achieve by investing in consumer marketing, greater retail coverage, and broadening its range of premium brands. The Hershey Company has intently focused on being a major competitor in the global market and recent strategic alliances and joint ventures may be the first step. STRATEGY # 3:

To increase its market share
* Hershey has announced deals with Korean Lotte Confectionery Co., Godrej Beverages & Foods Ltd in India. These three recent alliances will help propel The Hershey Company in their pursuit for global market share. * Hershey continued its push into Asia with 51% ownership of the joint venture BUSINESS LEVEL STRATEGY

Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. STRATEGY # 1:

To increase its market share and boost profits
* The business level strategy for The Hershey Company focuses on a combined...
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