...The Hershey Chocolate Company Table of Contents Board of Directors 1 Introduction 2 Report 3 Financial Report Card 9 Annual Report Board of Directors Pamela Arway- Senior Advisor to Chairman and CEO of American Express Robert Cavanaugh- Managing Director of DLJ Real Estate Capital Partners Charles Davis- CEO of Stone Point Capital, LLC James Nevels- Director of Tasty Baking Company Thomas Ridge- President and CEO of Ridge Global, LLC David Shedlarz- Vice President of Pfizer, Inc David West- President and CEO of The Hershey Company Leroy Zimmerman- Senior Counsel of Eckert, Seamans, Cherin, And Mellott, LLC The Hershey Company The Hershey Chocolate Company is one of the leading producers of chocolate and confectionary products. Hershey produces such chocolates as: the Hershey Kiss, Hershey Chocolate Bar, Mounds, Almond Joy, Reese’s Peanut Butter Cups, Kit Kat, and York Peppermint Patty. In this report we will give you the company’s mission, the description, the background and history, highlights of major news events, the SWOTS, their marketing strategy, their commitment to social responsibility, and the financial report card. Business 100 Project Amanda Milgim Ava Winckler Hossai Rahimpur Karen Montoya The Hershey Chocolate Company When you think of Hershey what is the first thing that comes to mind? Chocolate right? Right! Hershey is one of the largest and oldest producers...
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...The Hershey Company Worldwide Educators OR/5000 May 7, 2013 The Hershey Company Introduction The founder of the Hershey Company was Milton S. Hershey. He was raised in rural central Pennsylvania. Even though he lacked formal education and went nearly bankrupt by the time he was 30 years of age, Milton S. Hershey became one of the wealthiest men in the world. He started Lancaster Caramel Company in 1876, in Philadelphia, hiring about 1400 people, in his chocolate factory. By the time the year 1900 came in the picture Milton S. Hershey made 1 million dollars. This was the name before it was Hershey. Soon the Lancaster Caramel Company was shipping all over the U.S. and Europe. As time progressed on, Mr. Hershey opened a school for orphan boys called the Milton Hershey School; it has since opened its doors to girls as well. In 1918, Hershey transferred the bulk of his considerable wealth, including his ownership in the Hershey Chocolate Company and other enterprises, to the Hershey Trust to be held for the Hershey Industrial School. The Hershey’s Company many products to choose from such as Hershey’s milk chocolate bar, Reese’s peanut butter cups, Kit Kat wafer bars, Hershey’s Kisses, Jolly Ranchers, Ice Breakers, and many more. These products are only, to name a few. Hershey does not only offer sweets to eat also offer job opportunities, or if one would like to be an investor in the company. Mission Statement Hershey’s considers their mission as...
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...The Hershey Company and CSR Challenge The Hershey Company is the leading North American manufacturer of chocolate confectionery (The Hershey, 2014). The company uses cocoa suppliers in West Africa, where the harvest type of child labour and human trafficking is exposed in the chocolate industry. Thousands of children are forced to engage in unsafe activities such as using machetes and carrying heavy loads. Therefore, the majorities have scars on their body (Nieburg O., 2014). Nearly two million children work illegally on cocoa farms. Children from the Western Africa start to work at a young age of 12 to help their families because of the intense poverty that surround them (Louv J., 2014). Decision-making models • Bounded Rationality In order to address the issue of child labour and to build sustainability in the community, Hershey Company should follow the Bounded Rationality style of decision- making. The rational decision making model is very effective in the cocoa farms as it’s based on the rational thinking in order to come up with the best potential results. It gives the possibility to find possible solutions to the child labour issue, to calculate the consequences of them and finally to choose the best option. There is a cycling through different choices until an applicable one is found (Cioran N.A., 2013). • Varoom and Yetton’s Leadership On the other side, referring to the Varoom and Yetton’s Leadership and Decision-making (1973), it also can be an...
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...Management 306 The Hershey Company Introduction Trying to make chocolate chip cookies without eating all the chocolate chips first. Finally achieving the ever elusive perfect peel of a Reese’s cup wrapper. Breaking off a piece of a Kit Kat bar only to eat the whole thing anyways. These are all things everyone associates with one of the world’s leading candy companies, and that company is Hershey’s. The Hershey Company is one of the world’s leading manufacturers of chocolate and chocolate confectionary products. Hershey is a publicly owned company with over 14,000 employees and locations in over 90 countries. Hershey is known to manufacture many different products, including but not limited to Hershey Chocolate Chips and Chocolate Syrup; Kit Kat, Reese’s, Heath bars, Milk Duds, Goodbar, and many more. Hershey is a very interesting company, with a storied history, and proven business success. History The Hershey Chocolate Company began as a wholly owned subsidiary of Milton Hershey’s Lancaster Caramel Company in 1893. Soon after that William Murrie was hired to sell the excess product to other confectioners and he quickly turned the Hershey Company into a successful venture on its own. By 1895 the Hershey Company was making more than 114 chocolate products, and marketed several specifically to women and athletes. Hershey then realized the real market was in milk chocolate; he just needed to find a way to produce large quantities quickly and efficiently. Hershey worked relentlessly...
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...Hershey Company Name University Abstract The Hershey Company introducing the world of chocolate examines the remarkable successes and failures of the company. They are the largest North American manufacturer of chocolate and sugar confectionery products in its constant pursuit to maintain growth and profitability in a competitive industry. Hershey Company has an array of chocolate and confectionery products, which includes candies, beverages, baking ingredients, gums, syrups, and toppings for ice cream. Hershey Company produces and maintains more than 80 different brands. Hershey chocolate bar is known as the “Great American Chocolate Bar,” which is produced by Hershey Company and was invented by Milton Hershey over a hundred years ago and its products are sold in sixty different countries. We will look at the history of the company, its good marketing plan to expand that allows them to be more profits and more world recognition. Hershey Company maintain its dominant position in the industry and where the company is going in the near future. Hershey Company Mission and Objective Vision The vision of The Hershey Company is—Continuing Milton Hershey’s legacy of commitment to consumers, community and children, we provide high-quality Hershey’s products while conducting our business in a socially responsible and environmentally sustainable manner (The Hershey Company, n.d.). Mission Statement The mission of Hershey’s is encapsulated in the following words: Bringing...
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...The Hershey Company An Integrated Global Marketing Case Study | AbstractThe confectionary industry is becoming intensely competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to expand their integrated marketing communications plan into social media channels and produce innovative new products for the health-conscious consumers. Rebecca Simmons MBA FP-6012 Assessment 5 | The Hershey Company An Integrated Global Marketing Case Study | AbstractThe confectionary industry is becoming intensely competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to expand...
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...Hershey Company Weaknesses in the Product Life Cycle There are a couple of weaknesses in the product life cycle of Hershey. To begin with, candy sales are being lowered by health and wellness trends, which are not only a weakness for Hershey, but the entire chocolate and candy industries as a whole. In addition to that, Hershey has had price inflation for their products. There has been an increase in consumer consciousness when it comes to the health risks related to foods with high sugar and salt products as well as high-fat and cholesterol foods. Consumers are giving more attention to the product labels of the items they purchase and are choosing to purchase the healthiest products available. When it comes to price inflation, rising costs have been a principally tough challenge for the company. The raw material costs having to do with producing a basic milk chocolate bar weighing 3.5 ounces or 100 grams, has soared 28 percent. Hershey’s has been susceptible to market price increases of key ingredients like cocoa, milk, sugar and peanuts, which all have seen increasing prices. The price of cocoa butter, which makes up about a fourth of each chocolate bar, has risen 63 percent in the last 2 years, reaching a four-year high. Whole milk powder, which is another major part, has risen above 20 percent (Tidy, 2013). In order for the company to fight the rising costs, they would need to both raise domestic wholesale prices and lower product weight. The rising price of...
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...The Hershey Foods Corporation commonly called Hershey's, is the largest chocolate manufacturer in North America as well as the oldest. Milton Snavely Hershey founded a candy shop in Philadelphia, which failed after six years. After trying unsuccessfully to manufacture candy in New York, Hershey returned to Pennsylvania, where he founded the Lancaster Caramel Company, whose use of fresh milk in caramels proved successful (Hershey). In 1900, Hershey sold his caramel company for $1,000,000(Hershey). 1903, Hershey began construction of a chocolate plant in his hometown which later was named after him. The milk chocolate bars manufactured at this plant proved successful, and the company grew rapidly thereafter (Hershey). While his company was successfully selling sweet chocolate products, Milton Hershey knew that going down the path of creating and selling milk chocolate products would be better. Milton built a milk-processing plant in the year 1896, to be able to create and refine a recipe for milk chocolate candies (Hershey). In 1899, three years later, he developed his own way of making milk chocolate called the Hershey process (Hershey). In 1907, Hershey introduced "Hershey's Kisses", which were initially individually wrapped by hand in squares of foil, and the introduction of machine wrapping in 1921 made the process easier while adding the small paper ribbon to the top of the package to indicate that it was a genuine Hershey product (Hershey). The product was trademarked...
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...sought out to ensure what’s best for not just the company but the consumer as well. Marketing: This Is Just the Beginning Introduction In the beginning there was milk, sugar and cocoa; these three main items combined were the beginning of an empire. With this empire comes a long laundry list of marketing strategies that helped get a company known as Hershey to the top of the list when it comes to candy manufacturers. Market Force 1: Description and Analysis of impact on product/service Milk, Sugar, Cocoa and the Cost of It All. Product cost of these particular items tends to increase consistently. In order to keep the ability to sell the product the companies have to ensure that they remain competitive. Despite that Hershey obtains their cocoa from across seas it appears to becoming harder for the company to produce the chocolate at the price that it was being produced at just over a year ago. In results, Hershey decided to make the weight of the candy bar lighter while keeping the price the same. Of course in this day and time remaining competitive isn’t exactly easy. Consumers may begin to fear that because of this, the taste of the candy may begin to suffer. Market Force 2: Description and Analysis of impact on product/service Distribution Cost If a company can figure out how to keep the cost of distribution to a minimum the product will become easier to get out to the consumers. This means that Hershey will have to locate other options that are cheaper...
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...Hershey’s Sweet Mission The Hershey Company is the number one chocolate and non- chocolate confectionary manufacturer in North America (www.datamonitor.com). Founded in 1894 by Milton Hershey, the Hershey Company has managed to withstand the ever changing economy and manage its workforce in a way that has resulted in extreme success. Companies often undergo organizational restructure as a means to keep up with today’s shifting workforce and in an effort to attract and maintain the best talent. Especially in the United States, which is now being considered the world’s melting pot, the workforce is becoming much more diverse and great effort is required to address these changes. This paper discusses recommendations for the redesign of Hershey’s performance management system in order to appeal to its diverse workforce. Also discussed is how an employee would interpret the Hershey Company’s values in relation to their role. Workforce trends will be examined and how they could impact Hershey. Finally, the mentoring program that Hershey has implemented will be discussed along with the effects that this program has on integrating the culture at the Hershey Company. Recommend the redesign of Hershey’s performance manageir ment system to appeal to the diverse groups that it employs. A performance management system is a system put into place that makes certain that the employees’ outputs and activities align with the goals of the company or organization (Noe et al, 2011)...
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...get a better understanding of what we can aspect and how to deal with any issues that may come about. Definition of the Segmentation Bases Segmentation is the process of diving consumers in groups based on their needs. There are four different segmentations that a company can base their product on and they are as follow: Geographic Segmentation divides the market into different geographical units such as the region, climate, zone, state, country, district or urban/rural area which one lives. Demographic Segmentation is based on the race, religion, community, language, gender, marital status, occupation, and income of the individual. Psychographic Segmentation is based on individuals who have the same interest and by similar or same products. Divides individuals based on social class, lifestyle, or personality traits. Behavioral Segmentation divides buyers into groups based on their knowledge or responses to a product. Description of Each of the Target Markets One of the target markets that I would like to reach will be the demographic segmentation. That’s because looking at some of the products that the Hershey Company products they are based around the females. One product in particular is the Hershey Bliss, which is a square piece of chocolate, which are targeted to women in the age group of 25-49 years of age. This allows women in this age bracket to seek chocolate as a means of personal reward, comfort and indulgence. Analysis of Two Competitors and their Positioning...
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...THE HERSHEY COMPANY ANALYSIS Pursuant to Securities Exchange Act of 1934 Form 10-K & Schedule 14A Proxy Statement BUS 500A Accounting Fundamentals Professor Dennis Kyte February 19, 2012 Olabisi Carr I. Background Information Name of the Company: The Hershey Company. See SEC Form 10K, front page 0. Hereinafter. “Hershey.” or the “Company.” See Proxy Statement, page 2. Fiscal year covered by the annual report: Fiscal year 2009. See SEC Form 10K, front page 0. Stock Exchange where shares are traded and stock ticker symbol: New York Atock Exchange under ticker symbol HSY. See SEC Form 10K, page 16. State of Incorporation: Delaware. See SEC Form 10K, page 1. Describe the Company’s business(es), e.g. types of products manufactured: The Hershey Company sells quality chocolate and is the global leader in chocolate and sugar confectionery. Principal product groups include chocolate and confectionary products; snack products, gum and mint refreshment products; and pantry items, such as baking ingredients, toppings and beverages, See SEC Form 10K, page 1. II. Management and Audit Report Who are the Company’s Auditors? KMPG LLP. See Proxy Statement, page 35. What opinion did the auditors issue? KMPG opinion says the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Hershey Company and subsidiaries as of December 31, 2009 and 2008 and the results of their operations...
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...the right time. Utilizing product, place, price and promotion is vital for the attainment of sales and profits for any company. Employing the most out of these four tactics, also known as the four P’s, gives a company an advantage over competitors and helps define that company’s marketing mix. These four P’s are important to small companies with only one product or large companies with various products such as Hershey. Hershey Company is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products as well as an industry leader in gum and mint sales. The marketing mix for Hershey Company has and continues to evolve in order to utilize the four P’s and gain the most profits and sales possible. Product is the goods-and-services combination a company sells to a target market. Hershey Company offers various products to many target markets. Hershey employs various types of products ranging from the traditional Hershey Milk Chocolate bar to Hershey’s Milk and Milkshakes. By supplying various products the company is able to target several markets and compete on a much larger scale. There are many attributes of each product that make them unique but there are some vital attributes that Hershey uses in all of their products to optimize sales and profits. One of these attributes is quality, Hershey is known for its excellence in producing chocolate that is flavorful with a smooth texture and add several ingredients...
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...08/23/2008 Hershey Company & Tootsie Roll Company Company History Both the Hershey Company and the Tootsie Roll Company specialize in a wide variety of chocolate candy products. "The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products, with revenues of over $4 billion and more than 13,000 employees worldwide". The Hershey Company originated with the candy manufacturer Milton Hershey. In 1894 Milton Hershey wanted to design a sweet coating for his already existing caramels, thus his new enterprise, the Hershey Chocolate Company began. The Hershey Company went public on the New York Stock Exchange (NYSE) in 1922. The Tootsie Roll Industries, Inc. was established in 1896. "The round piece of chewy, chocolatey candy that delights Americans today still looks and tastes amazingly like the first Tootsie Roll, made over 109 years ago". The Tootsie Roll "still sells for one penny, the original price, even though the company now offers candy packages priced up to $6.99. The first penny candies to be individually wrapped in paper, Tootsie Rolls are protected today". The Tootsie Roll Industry produces more than 60 million Tootsie Rolls per day and is also the world's largest lollipop supplier, producing 20 million lollipops daily. The Tootsie Roll Industries, Inc. went public on the NYSE in 1927. New York Stock Exchange Company Information The Hershey Company (Hershey) and Tootsie...
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...Richard Waldo Human Resource Management Foundations HRM500 Date: January 21, 2012 Abstract Located in Lancaster, Pennsylvania, Milton Hershey, candy-manufacturer, made the decision in 1894 to produce sweet chocolate to his caramels. In the 1900’s the Hershey Chocolate Company started their journey down the sweet road of creating milk chocolate in the form of bars, wafers and other creations. In 1907 Mr. Hershey looked to expand the product line, beginning the signature candy, Hershey Kisses. Hershey’s mission statement, “bringing sweet moments of Hershey happiness to the world every day,” summarizes their company, their people, their past and their future. (About Hershey, 2010.) Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs. Hershey’s performance management system already appeals to the diverse groups that it employs, they are a well rounded group that continues to be successful. Their system already is appealing to their diverse groups; they cater to both the baby boomer generation as well at the “millennial” generation (employees in their twenties). Not only do they cater to age and generations differences, but they have experienced an increase in diversity with the expansion of the company. (Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2011). Hershey has found a way to attract the younger generations also known as the “millennial” generation, the idea of a mentoring program for the...
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