...perform at optimal levels. As companies grow and change, they often find it necessary to redesign and improve practices, policies, and/or procedures that result in the optimal functioning of the organization. One of the organizations that found it necessary to redesign its performance management system is the Hershey Company. Faced with an aging workforce of baby boomers and many new hires of millennial workers (the generation of workers in their twenties), the Hershey Company redesigned its performance management system in order to appeal to its diverse workforce. The redesigned system resulted in two major components. The first component included the company allowing goals to be set and tracked by employees. The second component of the redesigned performance management system included the component that the company was not just driven by outcomes measures, but also whether or not the outcomes were achieved with values aligned to the company. Given the challenges of dealing with organizational change from seasoned employees along with the challenges of maximizing the new ideas, talents, and energies from the younger generation, I would like to offer Hershey some recommendations for the implementation of its new system that would appeal to its diverse workforce. One of the first recommendations I would make is for the managers to review the values of the company with all of the employees. I believe it is imperative to...
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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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...believe will impact Hershey's the most. As more and more of the workforce reaches retirement age, some companies have set up mentoring programs between older and younger workers so that knowledge is not lost but passed on (Noel, 2011). Mentoring could affect the Hershey’s culture in a positive way, and through mentoring it will provide a transition of senior workers knowledge and understanding of company to their younger peers. I believe that through mentoring it helps tackle the value that Hershey’s stand for, for instance their first value. Their first value reads “We are Open to Possibilities by embracing diversity, seeking new approaches and striving for continuous improvement” (Noel, 2011). This value is right along the terms in what Hershey is trying to integrate in their...
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...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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...Dongyang Zhu BMGT440 Hershey Case Study Hershey Food Corporation was initially founded by Milton Snavely Hershey, with the born of Hershey Chocolate Company. Soon after Milton Hershey learned that the secret of mass production for his chocolate lay manufacture of huge quantities of one item, standardized in design, and with a continuity of streamlined output that held down cost. Hershey had generated sales of $5 million by 1911, more than eight time the company’s first-year revenues. By 1921, Hershey’s sales had soared to $20 million. In 1937, the quartermaster of the United States Army asked the Hershey Chocolate Corporation to develop a military-ration bar that could meet the needs of soldier in the field. By the end of World War II, Hershey was producing 24 million units of Field Ration D a week. More than three billion units of Field Ration D bars were made between 1940 and 1945, and were distributed to soldiers around the world. While other confectioners were forced to limit or even cease production during the war, the Hershey Chocolate Corporation was winning millions of loyal consumers, as well as a place in American history. While enjoyed making money, Hershey always “wanted it used for the purpose of enduring good.” Hershey’s dedication to his employees and the residents of the town was steadfast. During the Great Depression, despite a 50 percent drop in sales, Hershey refused to lay off any local employees. Instead, between 1929 and 1939, he launched a series...
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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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...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 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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...MISSION The mission statement of the Hershey Company brings to mind its signature chocolate bars and kisses: “Bringing sweet moments of Hershey happiness to the world everyday.” Living out that mission, however, comes down to more than candy. The company defines its mission in terms of its relationships with all stakeholders—consumers, employees, business partners (such as suppliers and distributors), shareholders, and the communities in which it operates. With regard to employees, the mission involves “winning with an aligned and empowered organization . . . while having fun.” “Aligned” employees should share values, be clear about how their work contributes to the organization’s mission, collaborate effectively, and be selected, equipped, and rewarded for meeting company objectives. These requirements, of course, call upon the skills of human resource management. With regard to values, Hershey has identified four and communicates them on its Web site: We are Open to Possibilities by embracing diversity, seeking new approaches and striving for continuous improvement. We are Growing Together by sharing knowledge and unwrapping human potential in an environment of mutual respect. We are Making a Difference by leading with integrity and determination to have a positive impact on everything we do. We are One Hershey, winning together while accepting individual responsibility for our results. All of these values play into the way Hershey addresses human resource management...
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...Industries The Hershey Company Interpretation and comparison between the two companies' ratios Ratios (pg 735) Ratio Receivable Turnover Ratio (Net Sales/(Average Accounts Receivable) $497,717/ (($32,371+$35,075)/ 2) = 14.76 $4,946,716/(($487,285+$522,673)/ 2) = 9.80 This ratio compares net sales divided by the average accounts reciavable. Tootsie Roll has far less sales but has to extend less credit on average to collect the full amount owed. By placing purchases in accounts recievable a business is able to generate more sales but does so by offering in essence an interest free loan to the customer. The accounts recievable indicates that both businesses are able to collect on their debts quickly. Since Tootsie has a higher percentage recievable turnover ratio they often have a relatively higher amount of cash on hand for running the business. Average Collection Period (365/Recievables turn over ratio) page 402 365/14.76 = 24.7 days 365/9.80 = 32.2 days The average collection period indicates that Tootsie Roll is able to convert an accounts reviable item into cash just under 8 days faster than Hershey Company. Tootsie has a greater likelihood of meeting its financial obligations since it is more likely to promptly recieve payment. One factor that may influence the interpretation of this result is the terms by which each business extends credit. For example if both companies extend credit under net 30 terms, Tootsie is more likely to receive prompt payment than Hershey. This calculation...
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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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...Redesign of Hershey’s Performance Management System Hershey Company employs diverse groups of employees to include baby boomers and millennial workers. Hershey has redesigned their performance management system to appeal to both generations focusing on knowledge workers, employee empowerment and teamwork. Hershey Company benefits from both its baby boomers and millennial workers because they represent its knowledge workers. According to Noe, Hollenbeck, Gerhart, & Wright (2011), “ Knowledge workers are employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession” (p.35). Baby boomers and millennial workers’ specific knowledge is important to the successful operations of Hershey. Hershey’s redesigned performance management system appeals to both generations in terms of employee empowerment. Hershey Company has a mentoring program in place where the baby boomers are paired with millennial workers to develop a professional relationship between the new millennial workers and the experienced baby boomers. In this mentoring program, baby boomers feel empowered because they are able to advise and guide the younger generation to Hershey’s corporate practices and processes by sharing their own experience and knowledge acquired from working at Hershey. Hershey challenges the younger generation with special projects to help them develop thinking skills and talent, which makes them feel involved and...
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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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...HERSHEY FOODS CORPORATION: BITTER TIMES IN A SWEET PLACE Teaching Note Synopsis and Objectives The proposed sale of Hershey Foods Corporation (HFC) during the summer of 2002 captured headlines and imaginations. After all, Hershey was an American icon, and when the company’s largest shareholder, the Hershey Trust Company (HSY), asked HFC management to explore a sale, the story drew national and international attention. The company’s unusual governance structure put the Hershey Trust’s board in the difficult position of making both an economic and a governance decision. On the one hand, the board faced a challenging economic decision that centered on determining whether the solicited bids provided a fair premium for HFC shareholders. On the other hand, the governance decision required the board to balance its fiduciary responsibility against the original mandate of Milton Hershey to support the Hershey School in perpetuity. The fiduciary responsibility is relatively simple compared with satisfying a broad array of constituents, including the Hershey community, HFC employees, and Pennsylvania’s attorney general. In addition to this teaching note, we provide a variety of teaching supplements to support a discussion of the complex issues presented by the case: • Video footage of the Hershey community and key players in the case • Excel spreadsheets for key case exhibits • Excel spreadsheets for key teaching-note exhibits • Projection-ready...
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