...Abstract This paper analyzes the case, Hershey Aligns Training With Strategy as referenced by Blanchard and Thacker (2013). The key focus will outline the correlation between organizational development and HRD. Keywords: organizational development, human resource development (HRD) Case Analysis: Hershey Aligns Training with Strategy The Hershey Company, headquartered in Hershey, Pennsylvania is a leading North American manufacturer of chocolate and confectionary grocery goods. Hershey currently sits on the Fortune 500 and operates in over ninety countries. In 2014, Hershey's earnings exceeded 7.4 billion dollars. Although today, Hershey is an international manufacturing powerhouse, back in 1982 their future was not very optimistic; in fact, Hershey was on the verge of being sold. Hershey realized in order to increase their revenue and create a sustainable company, major changes needed to be made. Hershey focused their efforts on analyzing and fixing their distributor marketing strategy (which included its trade funding allocations). This case analyzes Hershey's trade funding strategy as (outlined by their senior leadership) and the steps they took to improve this program. A Proactive Hershey When senior executives at Hershey realized their current trade funding program did not best serve their distributor's needs, they immediately looked for opportunities to improve upon their business relationships, sales, and accountability held with them. By utilizing...
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...The Hershey Company Hershey’s customer base consists of wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores and natural food stores. The company has made significant changes over the past decade to strengthen its relationships with these customers. Primarily, the company has worked on improving its customer relationship management (CRM) which “enables companies to provide excellent real-time customer service through the effective use of individual account information.” (Kotler & Keller, 2009). In 1999 Hershey put in place a $112 million enterprise resource planning (ERP) and CRM system. The new technology was meant to bring the company’s business practices up to date and provide across-the-board automation that would span the process from order-taking to truck-loading. Unfortunately, due to initial problems in getting customer orders into the new system and transmitting the correct details of those orders to warehouse for shipping, Hershey got behind on their delivery and consequently lost over $100 million (Turk & Bligh, 2004). In an effort to repair damaged customer relationships stemming from the serious failures the year before, in 2000 Hershey implemented a new strategy that focused on fulfillment speed and agility. The company understood better than ever its key U.S. customers’ needs: efficient, customer-driven processes...
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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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...Hershey Marketing Case Analysis The Hershey Company Hershey’s customer base consists of wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores and natural food stores. The company has made significant changes over the past decade to strengthen its relationships with these customers. Primarily, the company has worked on improving its customer relationship management (CRM) which “enables companies to provide excellent real-time customer service through the effective use of individual account information.” (Kotler & Keller, 2009). In 1999 Hershey put in place a $112 million enterprise resource planning (ERP) and CRM system. The new technology was meant to bring the company’s business practices up to date and provide across-the-board automation that would span the process from order-taking to truck-loading. Unfortunately, due to initial problems in getting customer orders into the new system and transmitting the correct details of those orders to warehouse for shipping, Hershey got behind on their delivery and consequently lost over $100 million (Turk & Bligh, 2004). In an effort to repair damaged customer relationships stemming from the serious failures the year before, in 2000 Hershey implemented a new strategy that focused on fulfillment speed and agility. The company understood better than ever its key U.S. customers’ needs: efficient...
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...Hershey’s Company and Tootsie Roll Industries are both makers of confectionary products, mainly chocolate and other candies. Both companies have been making these products since the early to middle 1890’s and market their products worldwide. Hershey’s is the larger company of the two. To show perspective of how much larger Hershey’s is, they had a net sale of over 5 billion dollars in 2008. Tootsie Roll’s net sales in 2008 were $492 million. However, I will be looking at and comparing their financial data from 2002 to 2004 to each other and to the 2004 industry average. Accounting ratios I will be looking at include liquidity ratios, solvency ratios, and profitability ratios. Liquidity ratios show the ability of a company to pay back their short-term obligations. A few examples of these ratios are the current ratio, current cash debt coverage ratio, accounts receivable turnover ratio, average collection period, inventory turnover ratio, and days in inventory. Starting with the current ratio, I found that Hershey’s Co. did quite well in 2002 and 2003 but fell sharply in 2004. This was due to a large increase in liabilities in 2004 compared to the other years. The industry average for 2004 was .90 and their current ratio that year was .92 so they are just slightly above it. Tootsie Roll fared much better in all 3 years with its current ratio never going below 2.34. Companies with ratios over 2.0 are considered to be very stable in their short-term financial standing. Another good...
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...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 to ensure a good product makes it way to the...
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...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 Two of Hershey’s competitors are: M&M/Mars, which is their biggest competitor and the other one is Nestle. M&M/Mars has made a promise to save...
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...Summary 4 Situation Analysis 7 Company 8 Who We Are 8 What we are known for 9 Competitive Advantage 9 Mission Statement 10 SWOT Analysis 11 Organizational Structure 14 Company’s Capabilities and Processes 14 Industry environment 15 Customers 15 Who are they 15 Any recent or expected changes in behavior, attitudes, composition of the customer base 16 What are they purchasing from your company 16 Why are they buying company’s product 16 Describe order qualifying and order winning characteristics of your company’s product(s) 17 Context 17 Industry 17 Economics 19 Technological 21 Societal 22 Legal 24 Competitors 25 Kind Healthy Snacks 25 Nature Valley 28 Kellogg’s 31 Financial Ratio 34 Collaborators 35 Growth Strategy 36 Detailed description of the growth strategy 37 Goals/Objectives 37 Segmentation 37 Targeting 38 Positioning 38 Strategy Execution 40 Product 41 Goals and Product Description 41 Process Description 42 Life Cycle Stage 43 Place 43 Goals and Market Exposure 43 Channels Used 44 Supply Chain System 45 Promotion 46 Goals 46 Promotional Blend 47 Price 50 Goals 50 Value Proposition and Price Sensitivity 50 Pricing Strategy (Short Term/Long Term) 51 Breakeven Analysis 52 Implementation and Control 53 Timing and Implementation Activities 54 Sales Estimates (Forecast) 54 Forecast/Estimates 56 Scenario Analysis and Discussion 57 Sensitivity Analysis and Discussion 59 ...
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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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...groups that it employs. First of all, any performance management system redesign must recognize that all employees are motivated differently by different things, but many can be affected by certain concepts. So it is imperative to know what motivates the majority of your employees. The redesign of Hershey’s performance management system to appeal to the diverse groups that it employs will need to involve management as well as the employees to make the effort successful. I feel that Hershey currently has a very good diversity program. Hershey has redesigned its performance management system appealing to the younger generations who show an eagerness for challenge, and results. Therefore I would employ a system that is in line with Hershey’s core values, and we can start by educating the workforce through training and the utilization of seminars, team huddles, and mentoring sessions and also, by soliciting feedback from the workforce in order to give employees a feeling of inclusion (Hershey Company 2012). The employees should be clear about the organization’s mission and be rewarded for doing what their job description entails. Also, human resource management will train other employees on the proper etiquette of race relations, ethnical differences, age differentials, and gender confusion such as transgender employees. In order to protect the company from law suits and bad publicity, the human resource management should take special care to know the laws of diversity...
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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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...groups that it employs. First of all, any performance management system redesign must recognize that all employees are motivated differently by different things, but many can be affected by certain concepts. So it is imperative to know what motivates the majority of your employees. The redesign of Hershey’s performance management system to appeal to the diverse groups that it employs will need to involve management as well as the employees to make the effort successful. I feel that Hershey currently has a very good diversity program. Hershey has redesigned its performance management system appealing to the younger generations who show an eagerness for challenge, and results. Therefore I would employ a system that is in line with Hershey’s core values, and we can start by educating the workforce through training and the utilization of seminars, team huddles, and mentoring sessions and also, by soliciting feedback from the workforce in order to give employees a feeling of inclusion (Hershey Company 2012). The employees should be clear about the organization’s mission and be rewarded for doing what their job description entails. Also, human resource management will train other employees on the proper etiquette of race relations, ethnical differences, age differentials, and gender confusion such as transgender employees. In order to protect the company from law suits and bad publicity, the human resource management should take special care to know the laws of diversity...
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...I. The Hershey Company’s Background The Hershey Chocolate Company was first founded by Milton S. Hershey in 1894 as a subsidiary of Lancaster Caramel Company. Hershey’s products are sold in sixty countries currently worldwide. Hershey currently employees roughly 13,000 employees. Hershey manufactures, distributes and sell a variety of chocolate and confectionery products, gum and mint products and pantry items. Hershey is one of the oldest chocolate companies currently in the United States and are well-known as an American icon for its chocolate bars. With this, Hershey’s has a competitive advantage in the market of the United States and continue to make strides in order to keep this advantage. (Hershey) Hershey’s vision statement 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.” Hershey’s promotes its employees to follow the value that it stand by and the value is distributed into four categories: (Hershey) Environment: to minimize impact while meeting functional requirements Marketplace: to engage in an ethical and fair business dealings Community: to positively impact the local communities and society where we work and live Workplace: To foster a desirable workplace II. Take 5 Challenge After the initial launch of Hershey’s Take 5 in 2005, the candy bar was popular along candy bar...
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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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...(717) 534-7556 Fax: (717) 534-6550 E-mail: mpogharian@hersheys.com Matthew F. Miller Investor Relations Manager Tele: (717) 534-7554 Fax: (717) 534-6550 E-mail: mfmiller@hersheys.com Prepared by: The Hershey Company Investor Relations Department 100 Crystal A Drive, P.O. Box 810 Hershey, PA 17033-0810 Internet: www.hersheys.com The Hershey Company Fact Book Table of Contents Page(S) 3 4 5-24 Mission Statement Acquisition/Divestiture Summary Key Corporate Events Financial Data Summary of Statements of Income - GAAP: 2010 & 2009 Summary of Statements of Income - Pro Forma: 2010 & 2009 Six-Year Consolidated Financial Summary Quarterly Performance (2010, 2009 & 2008) 2002 – 2010 GAAP & Non-GAAP Annual EPS Capitalization Financing Arrangements Long Term Financial Objectives Capital Expenditures Depreciation Cash Flow Analysis Share Repurchases Economic-ROIC HSY Stock Statistics Key Management Hershey Executive Team Operations U.S. Confectionery Industry U.S. Market Share U.S. Classes of Trade U.S. Snack Market Hershey Products Hershey Canada Hershey Mexico Hershey International Commodities Cocoa Sugar Hershey Manufacturing and Distribution 25 26 27 28 29 30 31 32 33 33 34 35-36 37 38-39 40 41-42 43-44 45 45 46-47 48-50 51 52-53 54-55 56 57 The Hershey Company What it means to stakeholders Consumers Delivering quality consumer-driven confectionery experiences for all occasions Employees Winning with an aligned and empowered organization…while having...
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