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    "Hershey's Food Corporation": Strategic MGT University of Gujrat

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    javedtehseen
    Hershey's is a focused food company with a mission to be a leader in the North American confectionery and chocolate-related grocery markets. It has a long history dating back to 1857 and has expanded significantly through acquisitions. It faces competition from Mars and Nestle but has opportunities for growth in international markets. The document discusses Hershey's history, competitors, finances, social responsibility efforts, and recommendations to expand globally and improve environmental sustainability.

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    "Hershey's Food Corporation": Strategic MGT University of Gujrat

    Uploaded by

    javedtehseen
    41 views18 pages
    Hershey's is a focused food company with a mission to be a leader in the North American confectionery and chocolate-related grocery markets. It has a long history dating back to 1857 and has expanded significantly through acquisitions. It faces competition from Mars and Nestle but has opportunities for growth in international markets. The document discusses Hershey's history, competitors, finances, social responsibility efforts, and recommendations to expand globally and improve environmental sustainability.

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    Presentation 11

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    Hershey's is a focused food company with a mission to be a leader in the North American confectionery and chocolate-related grocery markets. It has a long history dating back to 1857 and has expanded significantly through acquisitions. It faces competition from Mars and Nestle but has opportunities for growth in international markets. The document discusses Hershey's history, competitors, finances, social responsibility efforts, and recommendations to expand globally and improve environmental sustainability.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    41 views18 pages

    "Hershey's Food Corporation": Strategic MGT University of Gujrat

    Uploaded by

    javedtehseen
    Hershey's is a focused food company with a mission to be a leader in the North American confectionery and chocolate-related grocery markets. It has a long history dating back to 1857 and has expanded significantly through acquisitions. It faces competition from Mars and Nestle but has opportunities for growth in international markets. The document discusses Hershey's history, competitors, finances, social responsibility efforts, and recommendations to expand globally and improve environmental sustainability.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    Hersheys food corporation

    Strategic MGT University of Gujrat

    History of company

    Companies Internal affairs

    Hersheys Swot analysis

    Hersheys Competitors

    Hersheys social responsibility

    Hersheys research and development

    Hersheys finance

    Conclusion and suggestions

    History
    Company view:
    Our mission is to be a focused food company in North America and selected international markets and a leader in every aspect of our business. Our goal is to enhance our no 1 position in the North American confectionery market, be the leader in U.S. chocolate-related grocery products, and to build leadership positions in selected international markets.

    History of company
    Born in 1857 Begin with a childhood apprenticeship Starts its caramel company in1886 First chocolate sale in 1895 Hershey sells his caramel company to focus on chocolate in 1900 The firm incorporates as Hershey Chocolate Company and is listed on the New York Stock in 1927 Contribution during world war 2 Expansion of hershey Expansion by acquisition The H.B. Reese Candy Company was acquired in 1960 In 1968 hershey chocolate corporation changed its name to Hershey foods corporation Y&S Candy Corporation was acquired in 1970 In 2000 hershey purchased the Breath Freshener Mints and Gum business of Nabisco

    Mubina Yasmeen 031

    1 2 3

    Swot analysis Strength 1.International brand name and brand presence 2.High brand loyalty 3.Great taste and packaging 4.Highly regarded as a global chocolate brand Weaknesses 1.Expensive chocolates 2.Not easily available Opportunities 1.Tap growing cities and retail chains 2.Have more variety and smaller gift packages Threat 1.Other competing chocolate brands 2.Calorie conscious people

    Competitors
    Six major competitors who control 70% of the market These are Hershey, M&M Mars, Brach & Brock, Nestle of Switzerland, RJR Nabisco, and Leaf Inc. The remaining 30% is covered by local and regional manufactures

    Hershey has two major candy competitors Mars Nestle Almost 98% revenue of Nestle comes from international sale Almost 50% revenue of Mars comes from international sale While revenue of Hershey from international sale is just 10%

    Mars
    Has stronger presence than Hershey in Europe, Asia, Mexico, and Japan. Gained 12% of market in Mexico in one year successful introducing the bounty chocolate candy, in us without test marketing Unlike the Hershey it is using uniform marketing Mars is controlled by mars family Unwilling to disclose financial information and corporate strategies Mars products are bounty, Balisto and PB max Entered in Russia in 1992 & today owns the chocolate market there

    It is the largest leading food company in the world Sell its products in 360 countries World largest coffee manufacturers Nestle popular candy products include callier, crunch, and yes Manufacturing chocolates in 23 countries Another major products of nestle is frozen foods & refrigerated products

    khawaja mohsin 022

    Internal affairs
    Mr. R. H Lenny was elected as a president and chief executive officer in 2001 They adopt centralized decision making and functional structure Hershey has approximately 13,700 full time and 2300 part time employees Annual increment in sales, gross margin, EBIT, and earning per share

    Social responsibility
    Building on Milton Hershey's legacy of commitment to consumers, community and children, we provide highquality Hershey products while conducting our business in a socially responsible and environmentally sustainable manner.

    Research and development

    R&D Engage Is Developing New Products, Increasing The Quality Of Existing Product Research And Development Expenditure Decreased From $28.6 Million To $23.2, $24.2, And $2.4 Million Respectively In 2004, 2003, And 2002

    Balance sheet
    2003 Current assets Fixed Assets Total Assets Current liabilities Long term Debt Stockholder Equity Total Stock Holder Equity 11.824 26.150 37.975 12.853 14.228 10.893 37.975 2004 11.315 24.509 35.825 5.853 17.686 12.798 35.825

    Income statement
    2003 Net Sales Cost & Expenditure Total Income before interest and taxes Interest Income before Taxes Taxes Net income EPS 21.148 3.789 17.358 3.789 0.400 3.389 1.233 2.155 0.90 2004 19.067 3.342 15.725 3.342 0.303 3.039 0.495 2.543 1.00

    Conclusion

    Hersheys market share in the chocolate industries is less than 10%, lowest among its competitors Major strategic issue facing Hershey today is where, when, and how to best expand geographically. Firms are becoming environmentally proactive in their manufacturing and service delivery process environmentally responsible firms market themselves and their products environment is an issue for Hershey food corporation

    Suggestions

    China, India, Malaysia, Indonesia, and Thailand are untapped market. Hershey must capture those markets before the competitors. Hershey must take actions to make the environment friendly for safe products, it must adopt the recycling process and reduce the industrial waste. Hershey should follow the divisional structure and global marketing strategy to boos exports of chocolates

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