Individual assignment topic analysing the hershey organization

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 0 2021- 2022 0 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 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization 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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 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization 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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 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 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization 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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 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization  Lower inflation rate – The low inflation rate brings more stability in the market, enable credit at lower interest rate to the customers of Hershey  New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform This investment has opened new sales channel for Hershey In the next few years, the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics  Government green drive also opens an opportunity for procurement of Hershey products by the state as well as federal government contractors  New environmental policies – The new opportunities will create a level playing field for all the players in the industry It represents a great opportunity for Hershey to drive home its advantage in new technology and gain market share in the new product category  Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Hershey an opportunity to enter a new emerging market  The new taxation policy can significantly impact the way of doing business and 0 can open new opportunity for established players such as Hershey to increase its profitability Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization its profitability Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization  The market development will lead to dilution of competitor’s advantage and enable Hershey to increase its competitiveness compare to the other competitors 4.1.4 Threats Analysis  Increasing trend toward isolationism in the economy can lead to similar reaction from other government thus negatively impacting the international sales  Intense competition – 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 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization  The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets  The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term  Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Hershey  Imitation of the counterfeit and low-quality product is also a threat to Hershey’s product especially in the emerging markets and low-income markets  Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors 4.2 SFAS Analysis Key Strategic Factors Strengths Successful track record of developing new products Reliable suppliers Weight Rating Weighted Score Duration I II III Comments 0.1 0.4 X Product innovation 0.05 0.15 X It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks 0 Individual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organizationIndividual.assignment.topic.analysing.the.hershey.organization 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level of customer satisfaction 0.1 0.4 0 X the company with its dedicated customer relationship management 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management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers 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Weaknesses The marketing of the products left a lot to be desired Limited success outside core business Opportunities Lower inflation rate 0.1 0.3 X 0.1 0.2 X 0.1 0.5 10 0 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 The low inflation rate brings more stability in the market, enable credit at lower interest rate to the 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customers from online channel 0.05 0.15 Opening up of new markets 0.1 0.3 0 X X 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 i k t 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emerging market 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Intense competition 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 3.4 11 0 X 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 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