Topic analysing the hershey organization

lOMoARcPSD|17838488 Ho Chi Minh University of Technology School of Industrial Management Strategic Managements Semester 212 – Class: CC02 Lecturer: Prof Lai Van Tai Individual Assignment Topic: Analysing the Hershey Organization Student Name: Pham Tran Dang Khoa Student ID: 1952787 Ho Chi Minh city, Vietnam lOMoARcPSD|17838488 I Introduction about Strategic Managements course Strategic Management is a postgraduate course of two-years involving advanced lessons in psychology, sociology, and economics with the aim to develop an analytical approach in students which is an important factor of strategic issues management The course is divided into four semesters, each for a period of six months The course teaches about how managers must employ the formal and informal relationships that exist between various organisations in an industry, originate solutions for various problems encountered by an organisation, and effectively formulate and implement an organization's key strategies, the results of which shapes the structure and functioning of an organization Strategic management trains the eligible candidates in developing functional and managerial skills, building relationships with organisations, providing the recruitments in corporate management and strategy along with providing a platform for students, teachers, and industry experts to exchange leadership and management concepts A strategic management student is required to use his/her knowledge from other domains and fields including business administration, finance and marketing, risk management, negotiation, statistics and human resource There are various universities and colleges for business and economics which offer strategic management as specialization or a concentration track for a business management degree lOMoARcPSD|17838488 II Acknowledgement My name is Pham Tran Dang Khoa, a member in class CC02, course: Strategy Managements, leading by prof Lai Van Tai I am over helmed in all humbleness and gratefulness to acknowledge my depth to all those who have helped me to put these ideas, well above the level of simplicity and into something concrete I would like to express my special thanks of gratitude to my teacher as well as our principal who gave me the golden opportunity to this wonderful project on the topic Analysing Organization and I choose Hershey Organization to give the best analysis, which also helped me in doing a lot of Research and I came to know more about so many new things I am really thankful to them Thank you very much, prof for what you have taught to us in this semester Best regards, Pham Tran Dang Khoa – 1952787 lOMoARcPSD|17838488 Table of Contents I Introduction about Strategic Managements course ii II Acknowledgement iii Table of Contents .iv Introduction about the company .1 1.1 Overview about Hershey 1.2 Hershey History – A History of Goodness 1.3 Hershey Products .2 Situation of Hershey organization in nowadays .2 Hershey’s Vision/ Mission/ Core Values 3.1 Vision statement 3.2 Mission Statement .4 3.3 Core Values 3.3.1 Deliver 3.3.2 Collaborate 3.3.3 Develop .5 3.3.4 Question 3.3.5 Innovate .5 3.3.6 Inspire Hershey’s SWOT analysis (SFAS, IFAS, EFAS, CPM matrix) 4.1 SWOT analysis 4.1.1 Strengths Analysis .5 4.1.2 Weaknesses Analysis 4.1.3 Opportunities Analysis lOMoARcPSD|17838488 4.1.4 Threats Analysis 4.2 SFAS Analysis 4.3 IFAS – EFAS Analysis .12 Hershey Five Forces Analysis 12 5.1 Threat of New Entrants 13 5.2 Threat of Substitutes 13 5.3 Bargaining Power of Customers 14 5.4 Bargaining Power of Suppliers 14 5.5 Competitive Rivalry 15 The Hershey Company’s Competitors 15 6.1 CPM matrix .16 Hershey’s Strategic Formulation 17 7.1 Corporate level strategy 17 BCG Matrix 18 7.2 Business level strategy .21 Conclusion .22 III Appendix 23 IV Reference list .24 lOMoARcPSD|17838488 Introduction about the company 1.1 Overview about Hershey Hershey Company, also known as (1894–1927) Hershey Chocolate Co., (1927– 68) Hershey Chocolate Corporation, and (1968–2005) Hershey Foods Corporation, American manufacturer of food products, chiefly chocolate and sugar-based confections Hershey’s Milk Chocolate, in its brown-and-silver wrapper, was perhaps the best-known American candy bar of the 20th century Company headquarters are in Hershey, Pennsylvania The Hershey Company traces its origins to the 1880s, when Milton S Hershey founded the Lancaster Caramel Company in Lancaster, Pennsylvania After seeing German-made chocolate-processing machinery at the World’s Columbian Exposition of 1893 in Chicago, Hershey decided to go into the chocolate business During the 1960s Hershey bought the manufacturer of Reese’s Peanut Butter Cups and two pasta businesses In recognition of its diversification, the company was renamed Hershey Foods Corporation in 1968 Two notable changes came shortly afterward After many decades at cents, the price of the standard milk chocolate bar went up to 10 cents (bar size had diminished over the years) And in 1970 the company responded to increased competition—most notably from Mars, Inc.—by advertising to consumers for the first time 1.2 Hershey History – A History of Goodness Milton Hershey’s love for confection started at a young age and flourished when he established The Hershey Chocolate Company in 1894 By 1900, we sold our very first candy bar Today, Hershey’s portfolio of brands has expanded beyond the beloved and iconic HERSHEY’S Milk Chocolate Bar  1894: Lancaster Caramel Company: Milton Hershey incorporates the Lancaster Caramel Company and establishes Hershey Chocolate Company as a subsidiary lOMoARcPSD|17838488  1900: Milk Chocolate bars: Launch of Hershey’s Milk Chocolate bars  1907: Hershey’s Chocolate Kisses: Hershey begins manufacturing Hersey’s Chocolate Kisses  1963: H.B Reese Candy Company: Hershey acquires H.B Reese Candy Company  1971: Hershey’s Tropical Bar: Hershey’s Tropical Bar sent to the moon with Apollo 15 Astronauts  1973: Hershey’s Chocolate World: Hershey’s Chocolate World, the first retail center, opens  1979: $1 Billion Achieved: Hershey achieves $1 billion in annual sales  2000: World Cocoa Foundation: Founding member of the World Cocoa Foundation and begins investment in West Africa to support cocoa farmers and improve cacao agriculture  2008: $5 Billion in sales  2018: Michele Buck becomes CEO: first female CEO  2019: #35 on Diversity Inc: The Hershey Company recognized as #35 on Diversity Inc Top 50 Companies for Diversity  2020: #21 on Diversity Inc  2021: #10 on Diversity Inc 1.3 Hershey Products Hershey is best known for their chocolate products: Hershey’s Brand Chocolate Products: Hershey’s Extra Dark, Hershey’s Symphony, Hershey’s Drops, Hershey’s Miniatures, Hershey’s Pot of Gold, Hershey’s Nuggets Hershey’s Kisses Reese’s Brand products Situation of Hershey organization in nowadays In August 2021, the Hershey Company established a new health & safety policy requiring full vaccination for all corporate employees working in our 19E corporate office, Tech Centre, U.S commercial sales offices, customer teams, Hershey's Chocolate World Salaried Employees, Amplify, One Brands and Lily’s offices by Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 October 4, 2021 To support this, the company sponsored multiple vaccination clinics and allowed employees to seek accommodations for religious or medical reasons The company has engaged in an interactive process with our employees to evaluate when an accommodation is needed Nearly 98 percent of the teams covered by this policy have become vaccinated Over recent weeks, separations for a small number of teammates, less than two percent of our corporate and commercial teams who did not get vaccinated, have occurred Our manufacturing and retail employees have worked safely on the front lines since the start of the pandemic with heightened health and safety protocols, including masks, physical distancing, sanitizing and on-site vaccination clinics To date, The Hershey Company has committed over $2 million in cash and product donations to support COVID-19 response efforts around the world Our corporate giving team is working closely with our community non-profit partners to ensure they are supported during this time Our support and community response efforts continue to evolve as needs change throughout the pandemic Additionally, our Hershey Company Employees 1st Fund is actively supporting Hershey employees and their families who experience severe economic hardship as a result of this situation Hershey’s Vision/ Mission/ Core Values 3.1 Vision statement Hershey’s vision is “We not only offer the best merchandise at the best prices, but we’re always working to make your shopping experience enjoyable.” The company aim at delivering the best services to its customers at affordable prices Hershey is not only committed to offering healthy products but also changing the perceptions that people have about chocolate brands being unhealthy (Hershey Company, 2019) Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 The key components of the vision statement are: Offer the best merchandise at the best prices, Make your shopping experience enjoyable The “offer best merchandise at the best prices” component focuses on all the customers and potential consumers of the Hershey products The company has operations in more than 90 countries, and they aim to expand the services by delivering the products to a price that everyone can afford Their products are affordable, which makes them popular amongst the corporate and the customers “Make your shopping experience enjoyable” is focused on making sure that customers get value for their money In this component, Hershey aims at ensuring the customers get the best products at competitive and affordable prices The Hershey Company has also invested in supporting the underprivileged such as setting up Hershey Trust Company to help disadvantaged children 3.2 Mission Statement Hershey companies corporate mission statement states, “Proceeding with Milton Hershey’s heritage of responsibility regarding shoppers, group and youngsters, we give high calibre HERSHEY’S items while directing our business in a socially mindful and earth practical way.” 3.3 Core Values 3.3.1 Deliver The idea is to seek solutions by putting our prototypes to test This method resolves our problems quickly and helps us learn more To so, we proactively connect with our colleagues and resources when seeking an answer We always make sure that our decisions positively impact our community and are acted upon sooner, rather than later 3.3.2 Collaborate We believe in accomplishing together by building global partnerships Our approach towards collaboration includes the desire to learn from others, value their opinions, and appreciate their skills and expertise Irrespective of having different Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 perspectives, we listen to each other and voice our opinions Once a decision has been made, we commit ourselves to achieve the goal 3.3.3 Develop At HERSHEY’S, we encourage everyone to learn and keep growing We nurture an environment where everyone is allowed to experiment with ideas, invite diverse perspectives, celebrate successes and share learnings from our own mistakes We also keep an open window of feedback that will help us learn from others 3.3.4 Question We encourage everyone to question ideas, keeping in mind the processes, problems, and opportunities Everyone is welcomed to challenge or improve the existing norms and conventions of the system We take this thoughtful approach to ponder around questions and seek inspiration from the world around us We then put the gathered data to a resourceful use 3.3.5 Innovate We consistently urge everyone to suggest new and unconventional ideas and approaches At HERSHEY’S, one can show discontent towards an existing norm and bring fresh perspectives to ask, “How can we change or innovate…” And thus, exchange new insights on how to open the door to new possibilities 3.3.6 Inspire We thrive on our individual passions and also get inspired by others Our values include housing an atmosphere where people feel empowered and encouraged to create a plethora of new possibilities We also believe in speaking with conviction and listen closely to our co-workers This allows us to pursue a clear vision for one and all Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 High level of customer satisfaction Weaknesses The marketing of the products left a lot to be desired Limited success outside core business Opportunities Lower inflation rate 0.1 0.4 X 0.1 0.3 X 0.1 0.2 X 0.1 0.5 the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers The product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors Hershey is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture X 10 Downloaded by hây hay (vuchinhhp3@gmail.com) The low inflation rate brings more stability in the market, enable credit at lower interest rate to the lOMoARcPSD|17838488 New customers from online channel 0.05 0.15 Opening up of new markets 0.1 0.3 0.1 0.3 The company can face lawsuits in various markets given 0.1 0.4 X Growing strengths of local distributors 0.1 0.3 X Total Score 1.00 Threats Intense competition X X X 3.4 11 Downloaded by hây hay (vuchinhhp3@gmail.com) customers of Hershey The company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics The adoption of new technology standard and government free trade agreement has provided Hershey an opportunity to enter a new emerging market Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales Different laws and continuous fluctuations regarding product standards in those markets A threat in some markets as the competition is paying higher margins to the local distributors lOMoARcPSD|17838488 4.3 IFAS – EFAS Analysis Internal Factors (IFAS) External Factors (EFAS) Opportunities - Lower inflation rate - Online customers - Government green - Market development Threats - Intense competition - Face lawsuits - Rising pay level Strengths - Market strategies for its products - Developing new products - Reliable suppliers - Customer satisfaction - Strong dealer community - Strong distribution network - Good returns on capital expenditure Strength Opportunities (SO) Strategies Leveraging brand recognition in new segments Weaknesses - Gaps in the product range - Limited success outside core business - Only compatible with present business - High days inventory Weakness Opportunities (WO) Strategies Investing into customeroriented services and supply chain Weaknesses Threats (WT) Strategies Get out of the business and focus on growth areas Strength Threats (ST) Strategies Investing into R&D to thwart Consumer/NonCyclical industry disruptors Hershey Five Forces Analysis Porter’s Five Forces Analysis of Hershey's covers the company’s competitive landscape as well as the factors affecting its sector The analysis focuses on measuring the company’s position based on forces like threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and competitive rivalry 12 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 Hershey's Five Forces analysis helps to analyse its current position in the market based on factors like competitors, customers, suppliers, financial strength & alternate solutions 5.1 Threat of New Entrants The threat of new entrants in the Hershey's Porter Five Forces Analysis can be explained as follows: The Hershey Company, popularly known as Hershey’s, is one of the leading chocolate manufacturers in the world It produces chocolate and nonchocolate confectionery as well as baked sweets The confectionery market is roughly 206 billion USD currently and is projected to reach up to 225 billion USD in the next couple years The target market of Hershey’s, as also elaborated in one of their marketing slogans (“There is something for everyone”) is basically everyone They offer a wide range of products from chocolates, candies, and mints, to spreads and beverages to cater to different income and age groups Hershey’s operates in more than 70 countries worldwide For any new entrant, it is very difficult to maintain competitive prices due to the economies of scale that works in the favour of Hershey’s and the other larger players in the market Additionally, these incumbent players enjoy well-established supply chain and distribution channels, as well as a well-maintained brand image Any new entrant will have to compete with these players for shelf spaces and other shared resources, which adds up to create an overall high entry barrier Hence, on a global level, the threat of new entrants is low 5.2 Threat of Substitutes Below are the threats of substitute products of Porter’s Five Forces analysis of Hershey's: The chocolate confectionery industry offers highly differentiated products The industry offers chocolate spreads, bars, and candies and while other sweets and baked goods are close substitutes, these are not true replacements for chocolate products These sweets and confectionery items are produced by large companies and restaurants, as well as local eateries and shops at different price points and varieties So even though the number of substitutes is limited, the customers not face any 13 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 switching costs in shifting to a substitute product Hence, the threat of substitutes is a moderate force within the industry in which the Hershey Company operates 5.3 Bargaining Power of Customers In the Hershey's Porter Five Forces Analysis the bargaining power of the customers can be explained as: The volume of customers for the confectionery industry is very high The industry size is more than 200 billion USD, with some of the leading players like Mars and Hershey’s with worldwide sales in tens of billions of USD With respect to the total sales, the sales value per customer is small, which means that the bargaining power of customers is relatively low Further, the products offered by the industry are differentiated in terms of the taste and composition of the products Some of the products are exclusive to the companies and are highly popular among the consumers, which further indicates to low bargaining power of customers The customer segment, too, is very broad, and even though the low- and middle-income group segments can be price sensitive, the overall customer volume dilutes the force However, there is no switching costs to customers and there are many customers available, there can be some bargaining ability for customers in that context But, overall, it is a weak to moderate force for the confectionery industry 5.4 Bargaining Power of Suppliers Following is the bargaining power of suppliers in the Porter’s Five Forces analysis of Hershey's: Hershey’s sources its primary raw material i.e., cocoa from local farmers in West Africa The other raw materials are obtained from a wide range of suppliers Due to the large number and low concentration of suppliers, their bargaining power is low Further, none of the suppliers provide any exclusive or largely undifferentiated product, which means that they cannot affect production by withholding supplies The companies can easily switch to alternative suppliers without incurring major costs of switching 14 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 Additionally, the suppliers cannot pose a threat of forward integration to the companies by producing competing products, since the industry poses high entry barriers and offers differentiated products Overall, the bargaining power of suppliers is a weak force in the industry However, since Hershey’s operates globally, in some regions, suppliers can be scarce and eat into the overall profitability of the company 5.5 Competitive Rivalry The impact of key competitors in the Hershey's Porter Five Forces Analysis is as follows: The chocolate confectionery industry is projected to exhibit a CAGR of about 2-3% over the next five years With a low growth rate, the industry is in the late growth to early maturity stage, and hence there is intense rivalry between the competitors to capture the market share There are a few but large players in the industry Some of the major competitors of Hershey’s globally are Mars Inc., Ferrero, Nestle etc Globally, Hershey’s enjoys a market share of roughly 7% There is competition from local bakeries and confectioneries which operate on a much lower scale ae well All this adds to the competitive rivalry Further, for setting up such expansive industries, there are immense exit barriers of winding up infrastructure and paying off debts Even players with low profitability continue to operate in the market The price competition is high and since it’s a subset of the food industry, there is no costs for switching to a competitor Overall, the competitive rivalry is a strong force, as per the Porter’s model To conclude, the above Hershey's Porter Five Forces Analysis highlights the various elements which impact its competitive environment This understanding helps to evaluate the various external business factors for any company The Hershey Company’s Competitors Hershey’s competitors are: Nestle Inc., Mars Inc., and etc Brand Analysis Parent Hershey Trust Nestle Ltd 15 Downloaded by hây hay (vuchinhhp3@gmail.com) Mars lOMoARcPSD|17838488 company Company Category Chocolates Food products Chocolate Sector FMCG Food & Beverages Food & Beverages Good food, good life Work, rest and play Nestle is one of the biggest food processing, health and wellness brand in the world MARS bar is one of the confectionery industry's greatest success stories People looking for good quality, branded products like foods, dairy products, baby food, pet food, confectioneries People looking to have high quality premium chocolate Urban middle and upper middle class All age groups middle- and upper-class people Nestle is a world class company providing good quality, health and tasted food and beverages Mars bar can be enjoyed at every moment The great American chocolate bar, The Tagline/slogan sweetest tasted on Earth Offers more than 100 types of different chocolates and chocolate-based products USP STP Chocolate based Segment products Children and adults Target group from the middle and upper middle class Positioning One of the most sought after and tastiest chocolates 6.1 CPM matrix Hershey Critical success factors Market share Weight Rating 0.25 Nestle Mars Score Rating Score Rating Score 0.5 0.75 16 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 Number of employees Revenue for employee Net income Market capitalization % Operating margin Earnings per share Total 0.1 0.2 0.4 0.3 0.11 0.33 0.22 0.22 0.12 0.48 0.48 0.36 0.15 0.45 0.6 0.3 0.15 0.6 0.45 0.45 0.12 0.48 0.36 0.24 3.54 3.01 2.62 Hershey’s Strategic Formulation 7.1 Corporate level strategy Moving into our corporate level system, Hershey’s should progress into more pattern driven specialties, for example, premium, dull and morally sourced chocolate This will profit Hershey because of its joint wander with Barry Callebaut’s Barry Callebaut offers cocoa and chocolate items, prepared to-utilize fillings and beautifications, coatings and cocoa powders and in addition altered administrations to the whole nourishment fabricating industry For organizations that outsource their chocolate creation to enhance proficiency and diminish costs, Barry Callebaut makes a perfect worldwide accomplice (Dairy reporter) This organization gives Hershey prompt access to expansive aptitude in premium chocolate and expands on solid innovative work capacities They can cooperate on investigate including new cocoa flavors and new item advancement (www.dairyreporter.com) The Dairy Reporter additionally expresses, that organization together with bigger outsourced organizations in the Cocoa business will push for additionally change in West Africa to screen cocoa generation likewise guaranteeing the proficiency principles and work directions are 17 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 taken after In differentiating their product offering up and achieving each part of the confectionary specialty showcase, Hershey will initially need to offer of Ronzone The pasta division of the Hershey’s partnership does in truth give broadening and a heavy piece of piece of the pie, yet so as to move a durable way, this is the initial step that must be taken Hershey’s has shaped a completely new division of pasta notwithstanding Ronzone BCG Matrix The BCG Matrix for Hershey Company they will help Hershey Company the in implementing the business level strategies for its business units The analysis will first identify where the strategic business units of Hershey Company the fall within the BCG Matrix for Hershey Company The Stars The financial services strategic business unit is a star in the BCG matrix of Hershey Company It operates in a market that shows potential in the future Hershey Company earns a significant amount of its income from this SBU Hershey Company should vertically integrate by acquiring other firms in the supply chain This will help it in earning more profits as this Strategic business unit has potential The Number brand Strategic business unit is a star in the BCG matrix of Hershey Company The, and this is also the product that generates the greatest sales amongst its product portfolio The potential within this market is also high as consumers are demanding this and similar types of products Hershey Company should undergo a product development strategy for this SBU, where it develops innovative features on this product through research and development This will help Hershey Company by attracting more customers and increases its sales The Number brand Strategic business unit is a star in the BCG matrix of Hershey Company as Hershey Company has a 20% market share in this category It also the market leader in this category The overall category is expected to grow at 5% in the next years, which shows that the market growth rate is expected to remain high Hershey Company should use its current products to penetrate the market This could 18 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 be done by improving its distributions that will help in reaching out to untapped areas This will help increase the sales of Hershey Company The Cash Cows The supplier management service strategic business unit is a cash cow in the BCG matrix of Hershey Company The This has been in operation for over decades and has earned Hershey Company A significant amount in revenue The market share for Hershey Company the is high, but the overall market is declining as companies manage their supplier themselves rather than outsourcing it The recommended strategy for Hershey Company the is to stop further investment in this business and keep operating this strategic business unit as long as its profitable The Number brand strategic business unit is a cash cow in the BCG matrix of Hershey Company The This is an innovative product that has a market share of 25% in its category Hershey Company The is also the market leader in this category The overall category has been declining slowly in the past few years Hershey Company The has the power to influence the market as well in this category It should, therefore, invest in research and development so that the brand could be innovated This will help the category grow and will turn this cash cow into a star The overall benefit would be an increase in sales of Hershey Company The The international food strategic business unit is a cash cow in the BCG matrix for Hershey Company The This business unit has a high market share of 30% within its category, but people are now inclined less towards international food This change in trends has led to a decline in the growth rate of the market The recommended strategy for Hershey Company is to invest enough to keep this strategic business unit under operations If it no longer remains profitable and turns into a dog, then Hershey Company should divest this strategic business unit Question Marks The local foods strategic business unit is a question mark in the BCG matrix for Hershey Company The The recent trends within the market show that consumers are focusing more towards local foods Therefore, this market is showing a high market 19 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 growth rate However, Hershey Company has a low market share in this segment The recommended strategy for Hershey Company is to invest in research and development to come up with innovative features This product development strategy will ensure that this strategic business unit turns into a cash cow and brings profits for the company in the future The Number brand strategic business unit is a question mark in the BCG matrix for Hershey Company The This strategic business unit is a part of a market that is rapidly growing However, this strategic business unit has been incurring losses in the past few years It has also failed in the attempts made at innovation by research and development teams The recommended strategy for Hershey Company is to divest and prevent any future losses from occurring The confectionery strategic business unit is a question mark in the BCG matrix for Hershey Company The The confectionery market is an attractive market that is growing over the years However, Hershey Company the has a low market share in this attractive market The low sales are as a result of low reach and poor distribution of Hershey Company the in this segment The recommended strategy for Hershey Company the is to undergo market penetration, where it pushes to make its product present on more outlets This will ensure increased sales for Hershey Company The and convert this strategic business unit into a cash cow Dogs The plastic bags strategic business unit is a dog in the BCG matrix of Hershey Company The This strategic business unit has been in the loss for the last years It also operates in a market that is declining due to greater environmental concerns The recommended strategy for Hershey Company is to divest this strategic business unit and minimise its losses The Number brand strategic business unit is a dog in the BCG matrix for Hershey Company The This is operating in a market segment that is declining in the past years The company also has negative profits for this strategic business unit However, it is expected that the market will grow in the future with environmental changes that 20 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 are occurring The recommended strategy for Hershey Company is to invest in the business enough to convert into a cash cow This will ensure profits for Hershey Company if the market starts growing again in the future The synthetic fibre products strategic business unit is a dog in the BCG matrix of Hershey Company The The market for such products has been declining, and as a result of this decline, Hershey Company has been facing a loss in the past years The market share for it is also less than 5% The recommended strategy for Hershey Company is to divest this strategic business unit to minimise any further losses The artificially flavoured products strategic business unit is a dog in the BCG matrix for Hershey Company The These products were launched recently, with the prediction that this segment would grow However, with increasing health consciousness, people are now refraining from consumption of artificial flavours The market is shrinking, and Hershey Company the has no significant market share The recommended strategy for Hershey Company the is to call back this product Some of the strategic business units identified in the BCG matrix for Hershey Company they have the potential of changing from their current classification For example, a dog changing to a cash cow These have been identified in the BCG matrix of Hershey Company The and recommended strategies to ensure such change have also been made 7.2 Business level strategy To begin with game-plan for our business design technique proposal will begin in the Marketplace, which incorporates the organization’s sense of duty regarding reasonable and moral business dealings Because of Hershey’s notoriety and expansive piece of the pie – we definitely realize what the vast majority consider Hershey Chocolate Most Hershey Consumers feel chocolate otherworldly and mystical like the town named after it in Hershey Pennsylvania Be that as it may on the off chance that you go into the neighbourhood Bodega’s on Alberta Street in NE Portland you won’t discover a drop of Hershey Chocolate anyplace This territory organized to enjoy the bohemian and maintainable grown-ups with youthful families 21 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 With a specific end goal to get ready for the future, Hershey has to recognize what this statistic thinks about a Reese’s Peanut spread Cup or a Hershey kiss It is this statistic that should be taught in the new plans of Hershey It will be useful to make vast advertising effort with a residential area feel that can teach grown-ups ages 22-45 Endeavouring to contact them through neighbourhood shops and merchants can help get the word out that Hershey is ecologically mindful Conclusion As of late Hershey’s has been making some great steps towards developing their business and expanding their range beyond what many would consider possible On the off chance that they need to achieve greatest potential, after the talked about business proposals would be the most ideal approach to accomplish their objective By fusing an as good as ever coordinated cost administration separation methodology Hershey’s will take the opposition by store with new item contributions at unfathomable value focuses Furthermore, wandering into littler specialty showcase organizations will enable Hershey’s to achieve purchasers of all zones, tastes, and foundations So, Hershey’s can surprise the confectionary market and take a significantly greater piece of the piece of the overall industry Hershey’s has been around for over a century, they have made considerable progress from that point forward, and have settled on numerous great business choices Their business choices have functioned admirably hitherto, and will without a doubt prop them up into what’s to come In the following ten years, Hershey’s will remain an unmistakable industry inside the US, and possibly develop into a worldwide status Unless the world continuously winds up oversensitive to chocolate or sweet, the future just holds energy and development for this confectionary pioneer 22 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 III Appendix About the Hershey CEO: Michele Buck brings more than 25 years of consumerpackaged goods experience to her role as Hershey’s Chairman of the Board of Directors and 12th President and Chief Executive Officer She has two important roles – mom and business leader – that fulfil her life and she’s motivated by harnessing others’ strengths, expertise and perspectives Buck has held several senior leadership roles within the company Most recently, she served as Chief Operating Officer, leading Hershey’s day-to-day North American operations and overseeing Hershey’s operations in Central and South America Before joining Hershey in 2005, Buck served 17 years at Kraft/Nabisco in numerous senior positions and at the Frito-Lay division of PepsiCo She serves on the Board of Directors at New York Life, and as a Benefit Co-Chair for the Children’s Brain Tumour Foundation A native of central Pennsylvania, Buck earned a bachelor’s degree at Shippensburg University and holds a Master of Business Administration degree from the University of North Carolina at Chapel Hill 23 Downloaded by hây hay (vuchinhhp3@gmail.com) lOMoARcPSD|17838488 IV Reference list Hershey Company (2019) Hershey Company Retrieved from https://hersheycompany.wordpress.com/ Hershey – Mission and Vision Statement: https://mission-statement.com/hershey/ Kizil, C., Eddy, V., Clary, L., & Crowell, K (2013) Hershey Entry to the Australian Market with a New Brand: An Accounting and Marketing Perspective Emerging Markets Journal, vol 3, no 2, pp 97-126 Doi: 10.5195/emaj.2013.43 Internal factors and External factors: https://swotandpestleanalysis.com/swot-analysis-of-hersheys/ IFAS and EFAS analysis: https://embapro.com/frontpage/swotcoanalysis/28922-hershey Lewis, R (2017) Hershey Company Retrieved from https://www.britannica.com/topic/Hershey-Chocolate-Corporation The Hershey Company BCG Matrix: https://www.case48.com/bcg-matrix/15254-Hershey-Company-The The Hershey’s Five Forces Analysis: https://www.mbaskool.com/five-forces-analysis/companies/18306hersheys.html Success story (2019) The Hershey Company success story https://successstory.com/companies/the-hershey-company 10 SWOT analysis of the Hershey Company: http://fernfortuniversity.com/term-papers/swot/1433/362-hershey.php 11 Weighted Rating Score: The Hershey Company: https://www.chegg.com/homework-help/questions-and-answers/individualcome-weight-rating-weighted-score-hershey-s-nestle-mars-q43896419 24 Downloaded by hây hay (vuchinhhp3@gmail.com)