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116928825.Pdf Strenghts: *Hershey established The Milton Hershey School for orphan boys because of giving important of social and environmental responsibility so that public image increases. *Hershey started firstly the chocolate manufacturing renaissance. *Hershey has strong name and brand image because of becoming the largest pasta manufacturer. *Hershey produce diversified products like gum and chocolate. * Hershey focus on many industry segment(entertainment, resorts,restaurant,commercial) so that Hershey’s name easily spread on large market areas. * Hershey is very cooperative with students and professors; Hershey has a toll-free number (1-800-468-1714) that students or professors can call to obtain additional information about the company. This suituation make a difference for company. *Hershey’s facility was designed to include housing, parks and schools for employees so that Hershey motivate employees. *Hershey predecessor have a more contentious relationship with the board of directors. Weaknesses: *Hershey has more long term debt than key competitors *Company is hard put to do company control because of entering different geographic market. *Advertisement expenses increased by 46 % Opportunities: 1.Customers want to richer products/changing tastes 2.Hershey serve dark chocolate for health benefit 3.To eliminate child labor laws for African countries, Hershey involved International Cocoa Initiative Foundation. 4.Efficiency improvements for distribution 5.Hershey has power communication both customers and suppliers 6.The company products cocoa in new areas (i.e. India) 7.Company has a lot of different market area because of increasing in global trade. 8.Hershey has strong customer loyalty. Threats: 1.Nestle, Mars and Cadbury are primary power competitors. 2.Hershey ‘s product demand decrease because of increasing diabetes. 3.Society expect to aware greater environmental concern so that Hershey establish treatment facility which has high cost. 4.Increasing base price for chocolate raw materials change according to different geographic areas. 5.Lack of government support to developing countries (poor education of new technologies) 6.Increase cost of manufacturing technology process because of always improving of technology 7.Steady increase of minimum wage of employees for future years. 8.Steady price increase of milk and sugar. 9.Decreasing agricultural areas because these areas use for establishing factory, buıldings. 10.Natural disasters (i.e. hurricanes) are disrupting growth of chocolate ingredients. 11.Increasing fluctuation of exchange rates. 12.Nestle and Mars have different divisions such as beverages,drink How Can We Contribute The Hershey’s Company? Hershey can establish a chocolate making hobby center for every age of people who want to create a different design of chocolate and this strategy can be costly but public image inrease thanks to this strategy. Hershey can establish factories in close to growing up cocoa region for reducing transportation cost. Hershey can produce drink beverage such as schweppes of Cadburry. This strategy can be costly because it have to buy different technological machine and hire employees. Hershey needs to continue to focus on the global market.Hershey currently has a limited presencein many areas of the world.They have,however begun to expanded into many new areas and they must integrate into each country’s culture. Hershey should continue to provide new cholocolate flavored coffee products in supermarkets and coffee stores ( i.e Starbucks,Joe Mugs).Consumers have grown to appreciate specialty coffees and overall ‘’coffee shops experience’’in recent years.Further,Hershey’s name holds a great deal of clout with many consumers.This allows Hershey to market to new segments,more consumers and participate in new trends.Further,it provides Hershey the oppourtinity to colloborate with the coffee manufacturing industry and other food industries. Long Term Objectives Company can come up with variety of Gum product and chocolate to increase the market share. Increase the production capacity of Chocolate and Candy Motivate and inspire employee behavior that incentive high performans in different business areas. They have to find out the new channels of distribution and adopt the new channels toincrease the sales Company provide better customer service than competitors. http://hersheycompany.wordpress.com/category/2-swot-analysis/ ___________ _____________ http://www.scribd.com/doc/15196558/Hershey-Foods-Corporation-Swot-Analysis “Hershey Foods Corporation” History: Milton Hershey’s love for candy making began with a childhood apprenticeship under candy maker Joe Royer of Lancaster, Pennsylvania. Mr. Hershey was eager to own a candy-making business. By 1901, the chocolate Industry in America was growing rapidly. Hershey’s sales reached $662,000 that year, creating the need for a new factory. Mr. Hershey moved his company to Derry Church, Pennsylvania, a town that was renamed Hershey in 1906. The new Hershey factory provided a means of mass-producing a single chocolate product. In 1909 the Milton Hershey School for Orphans was founded. Mr. and Mrs. Hershey could not have children, so for years the Hershey chocolate Company operated mainly to provide funds for the orphanage. In the 1990s, Hershey acquired Ronzoni Foods Corporation from Kraft General Foods Corporation for $80 million. The purchase include the dry pasta, pasta sauces, and cheese business of Ronzoni Foods, which strengthened Hershey’s position as a branded pasta supplier in the United States. The latest Mission Statement of Hershey Foods is: “To be a focused food company in North America and selected International markets and a leader in every aspect of our business.” Hershey spent most of 1994 and 1995 reorganizing and today is comprised of Four Divisions: (1) Hershey chocolate North America, (2) Hershey Grocery, (3) Hershey International, and (4) Hershey Pasta Group. Case SWOT Analysis Strengths: Hershey Foods has grown from a one-product, one plant operation to a $4 billion company with many U.S. and international plants providing an array of quality chocolate and confectionery products and services. Hershey entered 1996 as the largest candy maker in the United States with 30.7 percent market share. Hershey is the largest pasta manufacturer in the United States with 28.4 percent market share. Hershey Foods Corporation is committed to the values of its founder Milton S. Hershey—the highest standard of quality, honesty, fairness, integrity, and respect. The firm makes annual distribution of cash, products, and services to a variety of national and local charitable organizations. The corporation operates the Milton Hershey School for socially disadvantaged children and is the sole sponsor of the Hershey National Track and Field Youth Program. Hershey also makes contributions to the Children’s Miracle Network, a national program benefiting children’s hospitals across the United States. Hershey’s main chocolate factory, for example, occupies more than 2 million square feet, is highly automated, and contains much heavy equipment, vats, and containers. It is the largest chocolate plant in the world. Hershey is an exemplary organization in terms of business ethics and social responsibility; a significant part of Hershey Food’s profits go toward operating the Milton Hershey School for Orphaned Children. Hershey is very cooperative with students and professors; Hershey has a toll-free number (1-800-468-1714) that students or professors can call to obtain additional information about the company. Weaknesses: Hershey’s global market share in the chocolate confectionary industry in only 10 percent, lowest among its competitors. Concern for the natural environment is an issue Hershey should address before competitors seize the initiative. The average price of Cocoa beans rose 25.8 percent in 1995, following a 28.9 consumption. The price per pound in 1995 was $0.72 and is expected to continue percent rise in 1994. World production is not keeping pace with increased increasing. This is a major problem for Hershey because even a small price increase at the retail level severely restricts consumer buying. +Some analysts contend that Hershey International as a separate division producing and selling diverse products is an ineffective organizational design. Opportunities: China and India are huge untapped markets. Malaysia, Indonesia, Vietnam, and Thailand also are untapped, So, Hershey has the opportunity to gain a foothold in those Countries. There is another opportunity for Hershey to develop environmentally safe products and packages, reducing industrial waste, recycling, and establishing an environmental audit process are strategies that could benefit Hershey. Another opportunity is that Hershey diversifies more into non-chocolate candies because that segment is growing most rapidly in foreign countries like U.S & U.K. Threats: The main competitors of Hershey Foods are Mars and Nestle. Mars is already a threat for Hershey, because Mars has a stronger presence than Hershey in Europe, Asia, Mexico, and Japan. Unlike Hershey, Mars has historically relied upon extensive marketing and advertising expenditures to gain market share, rather than on product innovation. 25 percent of Nestlé’s 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.
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