Milton Hershey Research Paper
Lauren Brady, Sylbia Choi, Pooja Doshi, Eliana Ritts, Margaret Rodriguez
MGMT-101-213, Team 2
Final Paper
April 27, 2010
The Hershey Company
Introduction
Recent trends toward globalization have revolutionized the confectionary industry. Although Hershey’s has traditionally focused on the American domestic market, it has recently attempted to diversify into international markets. However, these attempts have been largely unsuccessful, and Hershey’s global market share has decreased over the past five years. Hershey’s failure to expand internationally stems from two misfits. Hershey faces an external misfit between its business-level strategy of differentiation using American core values and changes in the global environment, as well as an internal misfit between its corporate-level strategy of international expansion and its formal organization. To resolve these issues, Hershey’s must align itself to meet the desires of its new customer base, while simultaneously uniting all members of its company.
History …show more content…
Hershey’s soon mass- produced its chocolate, and in 1947 it produced 90% of the nation’s milk chocolate (Brenner). Following the success of his business, Milton Hershey turned his attention to charitable causes by establishing the Milton Hershey School, which provided free housing, medical care, and education to children in need. Moreover, he gave the majority of voting power within the Company to the Milton Hershey School Trust (Klick). Hershey continued to dominate the U.S. market in the twentieth century by leveraging on its strong American brand image. As the domestic market matured, however, Hershey’s was pressured to expand globally to remain competitive. The following analysis details Hershey’s subsequent problems and presents recommendations for moving
MGMT-101-213, Team 2
Final Paper
April 27, 2010
The Hershey Company
Introduction
Recent trends toward globalization have revolutionized the confectionary industry. Although Hershey’s has traditionally focused on the American domestic market, it has recently attempted to diversify into international markets. However, these attempts have been largely unsuccessful, and Hershey’s global market share has decreased over the past five years. Hershey’s failure to expand internationally stems from two misfits. Hershey faces an external misfit between its business-level strategy of differentiation using American core values and changes in the global environment, as well as an internal misfit between its corporate-level strategy of international expansion and its formal organization. To resolve these issues, Hershey’s must align itself to meet the desires of its new customer base, while simultaneously uniting all members of its company.
History …show more content…
Hershey’s soon mass- produced its chocolate, and in 1947 it produced 90% of the nation’s milk chocolate (Brenner). Following the success of his business, Milton Hershey turned his attention to charitable causes by establishing the Milton Hershey School, which provided free housing, medical care, and education to children in need. Moreover, he gave the majority of voting power within the Company to the Milton Hershey School Trust (Klick). Hershey continued to dominate the U.S. market in the twentieth century by leveraging on its strong American brand image. As the domestic market matured, however, Hershey’s was pressured to expand globally to remain competitive. The following analysis details Hershey’s subsequent problems and presents recommendations for moving