Hershey Company Essay

AbstractThe Hershey participation, known until April 2005 as the Hershey Foods Corporation and commonly c exclusivelyed Hersheys, is the medium-largest drinking deep brown shaper in labor union America. Its headquarters are in Hershey, protactinium, which is as well as nucleotide to Hersheys chocolate World. It was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, a subsidiary of his Lancaster Caramel Company. Hersheys products are change in slightly sixty countries worldwide. In addition, Hershey is a member of the World Cocoa Foundation. The confederation has been topped to 384, compared with the previous rank 404, in 2013 (CNN, 2013). This paper is discharge to render the companys outside(a) environment, exams the strengths, weaknesses, opportunities and treats. After analyzing the strategic management for going abroad and competitive advantages, the author concluded that how the Hershey Company advantagees to offer the substantial worlds hap piness and what else whoremaster be down to spark off forward.Introduction to the Hershey CompanyThe Hershey Company is the largest umber and confectionary product manufacturer in the North America Region. The Hershey Company Headquarters is located in Hershey, Pennsylvania founded by Milton Hershey. Milton S. Hershey in the late 1800s and the company has been a huge foreplay of exploitation for Hershey, Derry Township (THEHERSHEYCOMPANY, 2011). As the new millennium begins, The Hershey Company continues to accede new products frequently and sustain advantage of growth opportunities through acquisitions. HERSHEYS products are known and enjoyed the world over. In fact, the company merchandiseplace, shit and air our products in approximately 70 countries. The Hershey Companys key commercialise includes United States, Canada, Mexico, Brazil and mainland China. As of year-end 2011, Hershey employed 13,800 wad and had unify net gross revenue of $6.08 billion (THEHERSHEYCOMPAN Y, 2011). Hersheys slogan is bringing honeyed moments of Hershey happiness to the world every day. Be base are nigh of the Hershey Companys popular brands Hersheys Chocolate BarAlmond exuberateKit KatHersheys KissesReesesMilk DudsMr. favourable barWhoppersHersheys MissionOur mission is to be a cerebrate food company in North America and selected international marts and a loss leader in every aspect of our business. Our goal is to enhance our initiative position in the North Ameri potful candy store market, be the leader in U.S. java-related grocery products, and to shape up leadership positions in selected international markets (THEHERSHEYCOMPANY, 2011). Hersheys Slogan is Bringing sweet moments of Hershey happiness to the world every day. To the stakeholders, this centre delivering quality consumer-driven confectionery experiences for all occasions to customers winning with an aligned and authorise organization while having fun to employees building collaborative relatio nships for profitable growth with customers, suppliers and partners creating sustainable value for shareholders honoring our heritage through continued trueness to making a positive difference on communities (THEHERSHEYCOMPANY, 2011).CustomersFull- succession gross sales representatives and food brokers sell our products to our customers. Hersheys customers are mainly sweeping distributors, kitchen range grocery stores, and mass merchandisers, chain drug stores, vending companies, wholesale clubs, whatsis stores, dollar stores, concessionaires, department stores and natural food stores (THEHERSHEYCOMPANY, 2011).International Business milieu abridgment SWOT Analysis 1. StrengthsHistory and market share. The Hershey company exports to 60 incompatible countries include Largest Distribution Network across North Ameri skunkterritory. According to market research firm Euromonitor International, the global confectionery market sits at $160 billion, and has grown at 5% annually the previous(prenominal) five years. Meanwhile, the coffee berry market in the United States is largely a two-horse race between Hershey (43%) and private company deflower, Inc. (31%). The next-largest antagonist, Nestle, holds only a 6% U.S. market share (Markman, 2012). Various Products and Attractions. The Hershey has 120 years history of burnt umber business. The Hershey Company develop various products such coffee bean bars and bags, liquorice and sugar candy, boxed coffee bean, mints and gum, and specialized nutritional products. The Hershey Company has a human activity of Hersheys Chocolate World attractions that provide consumers with the Hershey experience through synergistic retail entertainment and merchandise.Key store locations include Hershey, Pennsylvania measure Square in New York City The Magnificent Mile, Chicago Niagara Falls, Canada Shanghai, China Singapore and Dubai, United Arab Emirates (THEHERSHEYCOMPANY, 2011). Professional Training for Employees. He rshey provides a variety of educate and evolution opportunities that encourage their employees personal and professional development. Hershey University is an educational program that tailors its course of study to Hersheys evolving business environment, offering both classroom instruction and online courses. In addition, when specifically relevant to their jobs, employees may be entitled to tuition reimbursement for runs, bachelors and masters degrees at accredited institutions. Also, in July 2011 we launched CocoaLink, a first-of-its kind program that purposes mobile technology to deliver hard-nosedand criticalagricultural and companionable training to rural cocoa farmers (THEHERSHEYCOMPANY, 2011). pilot ladder and social responsibility. Hershey is an exemplary organization in terms of business ethical motive and socialresponsibility a significant part of Hershey Foods profits go toward operatingthe Milton Hershey School for Orphaned Children.2. WeaknessesUn good Nutritiona l Content. equalise with Nestle and Mars umber bars, Hersheys chocolate spicy in sugar. And Hersheys chocolate contain to a greater extent than twice as much as just about of the others (ACALORIECOUNTER, 2013). Un healthy nutritional content will affect customers choices of Hershey.Price pretension. Since 2008, Hershey Co. inform that it was raising its wholesale candy wrongs by 11%. This is the second price jump for them this year, in January they raised prices by 13% for select products in their line as well (ACALORIECOUNTER, 2013). In 2011, The Hershey Company says it is raising wholesale prices by 9.7% on most of its candy products. Due to price inflation of milk and sugar, the price of Hersheys chocolate keeps rising which lower Hersheys chocolates competitive ability among its competitors. Low international market share of chocolate confectionary manufacture. Hersheys global market share in the chocolate confectionary industry in only 10 percent, lowest among its compet itors3. OpportunitiesHuge Consume Market. 81% of home plates consume chocolate candy. China and India are huge untapped markets. Malaysia, Indonesia, Vietnam, and Thailand besides are untapped, So, Hershey has the opportunity to gain a foothold in those Countries (THEHERSHEYCOMPANY, 2011). environmentally Safety Products. There is another opportunity for Hershey to develop environmentally steady-going products and packages, reducing industrial waste, recycling, and establishing an environmental audit process are strategies that could public assistance Hershey. Non-chocolate candies Market. Another opportunity is that Hershey diversifies more(prenominal) into non-chocolate candies because that segment is growing most quickly in foreign countries like U.S &U.K. Anniversary and Festivals. The Hersheys Company should take advantage of the holidays such as Valentines Day and anniversary. For example, this years Valentines Day, MM let customers customized their chocolate online. Cus tomers can add their pictures on MM chocolates. And they can pick up the color of chocolates their like to combine a gift box. This innovation attracted a lot of customers.Charity & Foundations. As we all know, charity and foundations will bring great reputations to corporations. They can suspensor corporations build positive brand images which will incr tranquility brands sales.4. Threatsuphill competitors. The main competitors of Hershey Foods are Mars and Nestle. Mars is already a flagellum for Hershey, because Mars has a stronger presence than Hershey in Europe, Asia, Mexico, and Japan. At the same time, in that respect are in any case many new competitors are entering chocolate market such as Whole foods chocolate. Compare with Hershey, Mars, and Nestle, Whole Foods chocolate aim at healthy chocolates. They provide choice to the customer wants low fast and fundamental chocolate. 25 percent of Nestls revenues and profits come from coffee, and adverse economic occurrences in South America, particularly Brazil, affect the company. Nestle plans to continue to play to its strengths, international markets outside the United States, to combat Hershey. Social Changes rough Healthy Foods. With the development of Society and Technology, people more and more snap their health and nutrition. We can find more and more organic chocolate manufacture appearing. Doctors and Researchers also have studies prove that chocolates are serve upful to prevent heart diseases. Thus, more and more customers choose healthy chocolates such as dark chocolates and organic chocolates.Steady price increase of milk and sugar. The escalation of prices of the main ingredients such as cocoa, milk and sugar has forced companies to increase prices.Strategic Management Factors for exhalation GlobalNear the end of 2010, Hersheys entered into a deal with Wal-Mart (known as Asda in the UK) to sell Hersheys products in Europe. Hersheys has never been sold in the U.K. However, Hersheys will have to modify their products in coiffe to do so. Hersheys uses genetically modified ingredients in the U.S. and Asda does not sell products that include GM ingredients (Glaberson, 2010). Obviously, Hershey want to enter global market postulate to adjust their ingredients at first. The ingredients use for North America doesnt hatch it fit European or Asian Market. These emendments have been primaryd on understanding local culture. Whats more, Hershey should reach more attentions on their chocolate packages. They develop assorted series packages of chocolate in different countries. Hersheys white and brown can be market as undefiled series. They can add more colorful packages to attract childrens attentions. For example, in China, Red is a strong color which means wealth and happiness. Hershey can make red packages chocolates in China. In a shot, Hershey want to unfold internationally, they must integrate into each countrys culture.As a global brand, Hersheys try to cover al l people in different ages and status. However, from its advertisements, its major customers are children, teenagers and teen generations. Actually, most of these groups of customers havent economic capability to buy chocolate themselves. Adults and parents usually pay bullion for them. Thus, healthy ingredients are very important factors may affect parents willingness to pay chocolates to their children. Especially in European and Asian, parents are very focus on childrens nutrition.Hersheys products are mainly focus on young generations. However, if Hershey wants to expand international, Hershey needs more products are focus on household and adults. For example, Hershey can develop chocolate flavor coffee drinks, chocolate sauces, and chocolate gums.Now, the major of Hershey employees are from North United. To entering foreign market, Hershey has to train more foreign employees and build international team. Hersheys designers should know more about foreign culture. They can not only insistent of their American style. eventide executives of Hersheys should have some international backgrounds and experiences. Hershey can hire some executives who have international background and experiences. At the same time, Hershey can depute their design team to the county they want entering. Having better understanding of local culture, Hershey can have better design and marketing methods to meet local customers needs.Hershey should has its online shop. As far as now, Hershey only have official website of 8 countries. As show on the picture below, they are the United States, Canada, Mexico, Brazil, China, India, Korea, and Japan. In forthwiths business world, online shopping is becoming a tendency. A large amount of households shop online daily. Hershey should build their official online store like its competitor Mars. Hershey can sell both regular and customized chocolates online (THEHERSHEYCOMPANY, 2011). .Competitive Advantages AnalysisThe chocolate market share i s increasing globally. Customer loyalty is competitively lower than other industry. Websites are increasing in quality and ease for all users. HERSHEYS offers many unique products and services to many different kinds of customers by using their official websites. Whats more, Hershey has great partnership with North America wholesalers and retailers such as Wal-Mart, Sams club, and Walgreen. Hershey has advantages on high domestic market shares. 43% of US domestic chocolate market share provide Hersheys stable sales. Thus, Hershey should make its development base on steady their US market (CNN, 2011).CommunityWe make donations of property and products in countries across the globe where we have a presence. For example, last workweek I shopped at Walgreen, the cashier asked me if I want to donate Hershey chocolate to help US army. I choose yes, and most customers donate a Hershey chocolate bar which cost them 50cent. Hershey is willing to help community and does their social respons ibility. Whats more, Hershey encourages and supports the involvement of our employees in a wide range of community-improvement activities. oeuvreAs a global corporation, Hershey ensures a safe workplace. Safety murder is a company priority, and Hersheys overarching safety goal is to consistently action topper-in-class safety performance (THEHERSHEYCOMPANY, 2011). The Hershey Company has a long history of promoting health and wellness for its employees, their families and the community. Hershey offers personal training and massage and fitness room at office locations. Hershey engages employees to get fit and stay well.EnvironmentHershey increase use of sustainable packaging since 2009. Now they are working on a process to define opportunities to reduce the amount of materials they use by for example, optimizing sealing wax sizes and implementing new technologies, and to identify and test sustainable packaging alternatives (Glaberson, 2010).All of these factors help Hershey build a great reputation in North America. Hershey has already get success at North America market. Thus, its time forHershey focus on expanding its foreign market.ConclusionCulture today is heavily focused on personnel health. In the past few decades, people have become much more aware of the various factors that negatively affect their health and work hard to avoid them. As a general rule, chocolate and other candy are viewed as an dropsical snack. Therefore, Hershey needs to continue to expand and market healthy products in tell to gain a greater market share for example, low calories, low fat chocolates bars. Moreover, Hershey can put focus on dark chocolate which is popular among ladies (Jones, 2010). Second, Hershey should pay more attentions on its gums and chocolate flavor coffee drinks. For example, In Asia, chocolate market is competitively mature. There are already many local brands. Thus, to better entering Asian Market, Hershey only focus on its chocolate products is not e nough.To expand global market, Hershey has to invest in advertisement. Whats more, Hershey can keep working on their charity activities, and foundations. To help people from all over the world, Hershey can set up foundations in different countries.Price and quality are two keys determine the success of entering foreign markets. Hershey should still keep its affordable price with best quality. Hershey can corporate with local chocolate maker with manufacture and packaging to reduce their cost.The hierarchy of Hershey Company should be more international. Hershey needs to hire more designers, executives, and employees with international background or experiences.The commercialization of many holidays is go on to expand and the popularity of gifts for these holidays is also increasing. Hershey can provide holiday products in outlets also their website (i.e., Hallmark, Barnes and Noble). These Traditional holidays (i.e., Christmas, Valentines Day, Mothers Day, and Halloween) allows Her shey to optimize the importance of their disparateness gift products. By providing specialized gift products,Hershey can increase their sales and expand quickly in foreign market.Finally, Hershey can design different product lines. For example, Hershey can use its source entering organic chocolate market. Hersheys organic chocolate faces to European, developed countries which their cultures are more focus organic food. The premium product line can help improve Hersheys brand images. Also, it can meet more customers needs.ReferencesACALORIECOUNTER. (2013, October 16). Candy & Chocolate Bars Compared Hersheys, Nestle and Mars Nutrition Facts. Retrieved adjoin 16, 2014, from http//www.acaloriecounter.com/candy-chocolate.phpGlaberson, H. (2010). Hershey to launch confectionery brands in UK and Europe. Retrieved March 16, 2014, from http//www.confectionerynews.com/Manufacturers/Hershey-to-launch-confectionery-brands-in-UK-and-Europe CNN. (2013). Global 500 Hershey. Retrieved March 16, 2014, from http//money.cnn.com/magazines/fortune/global500/2012/snapshots/2190.html THEHERSHEYCOMPANY. (2011, declination 31). Hershey Corporate Social responsibility progress report 2011. Retrieved March 16, 2014, from http//www.thehersheycompany.com/assets/pdfs/hersheycompany/Hershey2011CSRReport.pdf CNN. (2011, April 1). Hersheys raises prices nearly 10%. Retrieved March 16, 2014, from http//edition.cnn.com/2011/BUSINESS/03/31/hershey.prices/index.html Jones, D. (2010, January 26). Nestle waits for market pressures to soften Hershey. REUTERS. Retrieved March 18, 2013, from http//www.reuters.com/article/2010/01/26/us-nestle-analysis-idUSTRE60P31A20100126 Markman, J. (2012, September 4). Hershey Starting to Sugar-Coat the World. Investor Place. Retrieved March 16, 2014, from http//investorplace.com/2012/09/hershey-is-sugar-coating-the-world-hsy/