...KRAFT’S BUDGETING AND STRATEGY A case study Presented to CASE STUDY IN PRODUCTION AND OPERATION MANAGEMENT BUDGETING AND STRATEGY A KRAFT FOOD INTRODUCTION The company has its origin as National Dairy Products Corporation (National Dairy), formed on December 10, 1923, by Thomas H. McInnerney. The firm was initially set up to execute on a rollup strategy in the then fragmented United States ice cream industry. Through acquisitions it expanded into a full range of dairy products. By 1930 it was the largest dairy company in the United States and the world, exceeding Borden. McInnerney operated the Hydrox Corporation, an ice cream company located in Chicago, Illinois. In 1923 he went to Wall Street to convince investment bankers there to finance his scheme for consolidating the United States ice cream industry. He initially found "hard sledding" with one banker saying the dairy industry "lacked dignity." He persevered and convinced a consortium including Goldman Sachs and Lehman Brothers to finance a rollup strategy. As a result of his efforts, National Dairy Products Corporation was formed in 1923 in a merger of McInnerney's Hydrox with Rieck McJunkin Dairy Co of Pittsburgh, Pennsylvania. The resulting firm was then listed on the New York Stock Exchange with the offer of 125,000 shares having been The firm grew quickly through a large number of acquisitions. As it is typical...
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...industry, but also because the band allowed listeners to pay whatever they wished for it. Some 60% of those who seized the opportunity paid nothing at all, but the band seemed pleased with the result; one estimate had it earning nearly $3m from the experiment. One group outside the music industry taking an interest was a trio of professors then at the Rady School of Management at the University of California, San Diego: Ayelet Gneezy, Uri Gneezy and Leif Nelson (who is now at the Haas School of Business at the University of California, Berkeley). Inspired, they designed a series of experiments to gauge whether pay-what-you-want pricing would work for other businesses. Their most recent experiment, co-authored with Amber Brown of Disney Research and published in Science, also stirred in a new element: would it make any difference if firms donated some of the pay-what-you-want fee to charity? The authors set up their pricing experiment at the exit of a roller-coaster ride at a large amusement park. Riders were offered a photograph of themselves, snapped mid-coast. The usual price was $12.95, but on one day riders were told they could pay what they wished, including taking the photo for free. A second group was charged the full price but told that half the money would go to a well-regarded health charity. Yet a third group...
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...FACTS Contacts: Mark K. Pogharian Vice President, Investor Relations Tele: (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 ...
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...Fiscal 2009 Corporate Responsibility Report Special Note Regarding Forward-Looking Statements: This corporate responsibility report contains forward-looking statements that concern our expectations, beliefs, projections, strategies, initiatives and anticipated events. These forward-looking statements include: statements regarding the timing and method of providing updates to this corporate responsibility report and new corporate responsibility reports, our expectations regarding the future globalization of our corporate responsibility initiatives; our plan to pursue initiatives in the areas of childhood nutrition, advertising directed at children, reduction of energy, water consumption, waste and emissions production, biodiversity, chemicals and animal welfare; our intention to evaluate and study how to build more environmentallyfriendly restaurants as well as making existing restaurants more environmentally-friendly; our plans to introduce new products, including new Kids Meals; our plan to expand certain benefits, including our flextime program; our intention to continue to support minority- and women-owned suppliers; our intention to continue our work and relationships with certain coalitions and organizations on a variety of philanthropic, people and corporate governance initiatives; and the company’s intention to pursue the next steps outlined in the corporate responsibility report as well as its beliefs regarding the future positive impact of undertaking these steps...
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...FACTS Contacts: Mark K. Pogharian Vice President, Investor Relations Tele: (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: 2011 & 2010 Summary of Statements of Income - Pro Forma: 2011 & 2010 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 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 The Hershey Company What it means to stakeholders Consumers Delivering quality consumer-driven confectionery experiences for all occasions Employees ...
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...Chapter 03 Consumer Behavior Multiple Choice 1. ________________ emphasize(s) that profitable marketing begins with the discovery and understanding of consumer needs and then develops a marketing mix to satisfy these needs. A) The marketing concept B) The strategic plan C) The product influences D) The price influences Answer: A Page: 40 2. ________________ is one of the most basic influences on an individual’s needs, wants, and behavior. A) Brand B) Culture C) Product D) Price Answer: B Page: 41 3. In terms of consumer behavior; culture, social class, and reference group influences have been related to purchase and _______________. A) Economic situations B) Situational influences C) Consumption decisions D) Physiological influences Answer: C Page: 39 4. Many sub-cultural barriers are decreasing because of mass communication, mass transit, and a ___________________. A) Decline in the influence of religious values B) Decline in communal influences C) Strong awareness of brands in the market D) Strong awareness of pricing policies in the market Answer: A Page: 42 5. ___________ develop on the basis of wealth, skills and power. A) Economical classes B) Purchasing communities C) Competitors D) Social classes Answer: D Page: 42 6. _____________ (is) are transmitted through three basic organizations: the family, religious organizations, and educational institutions; and in today’s...
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...ADVERTISING'S FIFTEEN JIB FOWLES* BASIC APPEALS Emotional Appeals THE NATURE OF EFFECTIVE advertisements was recognized full well by the late media philosopher Marshall McLuhan . In his Understanding Media, the first sentence of the section on advertising reads, "The continuous pressure is to create ads more and more in the image of audience motives and desires ." By giving form to people's deep-lying desires, and picturing states of being that individuals privately yearn for, advertisers have the best chance of arresting attention and affecting communication . And that is the immediate goal of advertising : to tug at our psychological shirt sleeves and slow us down long enough for a word or two about whatever is being sold . We glance at a picture of a solitary rancher at work, and "Marlboro" slips into our minds . Advertisers (I'm using the term as a shorthand for both the products' manufacturers, who bring the ambition and money to the process, and the advertising agencies, who supply the know-how) are ever more compelled to invoke consumers' drives and longings ; this is the "continuous pressure" McLuhan refers to . Over the past century, the American marketplace has grown increasingly congested as more and more products have entered into the frenzied competition after the public's dollars. The economies of other nations are quieter than ours since the volume of goods being hawked does not so greatly exceed demand . In some economies, consumer wares...
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...TABLE OF CONTENTS Executive Summary ............................................................................................................................................... 1 The problem .............................................................................................................................................................. 2 Background ............................................................................................................................................................... 3 Research ..................................................................................................................................................................... 4 PMB................................................................................................................................................................ 4 Primary data survey .............................................................................................................................. 5 Industry overview .................................................................................................................................. 7 Costs ............................................................................................................................................................. 7 Revenues ..................................................................................................................................................... 8 The...
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...SIXTH EDITION STRATEGIC MANAGEMENT IN ACTION Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Senior Acquisitions Editor: April Cole Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Gianna Sandri Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: LCI Design Cover Designer: LCI Design Cover Art: Svetoslav Iliev/Shutterstock.com Permission Specialist: Brooks Hill-Whilton Media Project Manager, Production: Lisa Rinaldi Senior Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management and Composition: Integra Printer/Binder: RRD/Willard Cover Printer: Lehigh-Phoenix Color Text Font: 10/12, Times LT Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2010, 2008 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights...
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...CONTENTS Introduction Part One: Foundations Chapter One: Introduction to Advertising 1 Chapter Two: Advertising’s Role in Marketing 34 Chapter Three: Advertising and Society 68 Part Two: Planning and Strategy Chapter Four: How Advertising Works 103 Chapter Five: The Consumer Audience 135 Chapter Six: Strategic Research 169 Chapter Seven: Strategic Planning 205 Part Three: Effective Advertising Media Chapter Eight: Print and Out-of-Home Media 239 Chapter Nine: Broadcast Media 274 Chapter Ten: Interactive and Alternative Media 310 Chapter Eleven: Media Planning and Buying 345 Part Four: Effective Advertising Messages Chapter Twelve: The Creative Side and Message Strategy 378 Chapter Thirteen: Copywriting 411 Chapter Fourteen: Design and Production 443 Part Five: Integration and Evaluation Chapter Fifteen: Direct Response 476 Chapter Sixteen: Sales Promotion, Events, and Sponsorships 508 Chapter Seventeen: Public Relations 542 Chapter Eighteen: Special Advertising Situations 576 Chapter Nineteen: Evaluation of Effectiveness 610 INTRODUCTION Welcome to the Test Item File for the Wells/Moriarty/Burnett Advertising: Principles and Practice, 7th edition text. This test bank was designed with the student and instructor in mind. All questions in this manual are drawn directly from the master text. APPLICATION QUESTIONS: New to the seventh edition of the Test Item File is a section...
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...The Prevention of Food Adulteration Act & Rules (as on 1.10.2004) CONTENTS PRELIMINARY SECTION 1. 2. 2-A Short title, extent and commencement Definitions Rule of construction PAGE 1 1 10 MISCELLANEOUS SECTION PAGE 14. Manufacturers, distributors and dealers to give warranty 35 14-A Vendor to disclose the name, etc, of the person from whom the article of food was purchased 36 15. Notification of food poisoning 36 16. Penalties 36 16-A Power of Court to try cases summarily 39 17. Offences by companies 43 18. Forfeiture of property 45 19. Defences which may or may not be allowed in prosecutions under this Act 46 20. Cognizance and trial of offences 47 20-A Power of Court to implead manufacturer, etc. 53 20-AA Application of the Probation of Offenders Act, 1958 and Section 360 of the Code of Criminal Procedure 1973. 54 21. Magistrates power to impose enhanced penalties 54 22. Protection of action taken in good faith 54 22-A Power of Central Government to give directions 54 23. Power of Central Government to make rules 55 24. Power of the State Government to make rules 58 25. Repeal and saving 59 THE PREVENTION OF FOOD ADULTERATION RULES, 1955 Part I PRELIMINARY RULE PAGE 1. Short title, extent and commencement 60 2. Definitions 60 vi CENTRAL COMMITTEE FOR FOOD STANDARDS AND CENTRAL FOOD LABORATORY 3. 3-A 4. 5. 6. 7. The Cental Committee for Food Standards Appointement of Secretary and other staff Central Food Laboratory GENERAL PROVISIONS AS TO FOOD Prohibition of import...
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...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...
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...The Lucky One - Nicholas Spark CONTENTS l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 Chapter 31 Chapter 32 Chapter 33 Chapter 34 Chapter 35 Chapter 36 Chapter 37 Chapter 38 Epilogue Chapter One Clayton and Thibault Deputy Keith Clayton hadn't heard them approach, and up close, he didn't like the looks of them any more than he had the first time he'd seen them. The dog was part of it. He wasn't fond of German shepherds, and this one, though he was standing quietly, reminded him of Panther, the police dog that rode with Deputy Kenny Moore and was quick to bite suspects in the crotch at the slightest command. Most of the time he regarded Moore as an idiot, but he was still just about the closest thing to a friend that Clayton had in the department, and he had to admit that Moore had a way of telling those crotch-biting stories that made Clayton double over in laughter. And Moore would definitely have appreciated the little skinny-dipping party Clayton had just broken up, when he'd spied a couple of coeds sunning down by the creek in all their morning glory. He hadn't been there for more than a few minutes and had snapped only a couple...
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...Doing Business in Thailand: 2012 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. • • • • • • • • • • Chapter 1: Doing Business In Thailand Chapter 2: Political and Economic Environment Chapter 3: Selling U.S. Products and Services Chapter 4: Leading Sectors for U.S. Export and Investment Chapter 5: Trade Regulations, Customs and Standards Chapter 6: Investment Climate Chapter 7: Trade and Project Financing Chapter 8: Business Travel Chapter 9: Contacts, Market Research and Trade Events Chapter 10: Guide to Our Services 1 Return to table of contents Chapter 1: Doing Business In Thailand • • • • Market Overview Market Challenges Market Opportunities Market Entry Strategy Market Overview • Return to top Thailand is the 27th largest export destination for the United States. Two-way trade in 2011 was about $35.75 billion, with $24.8 billion in Thai exports to the U.S. and $10.9 billion in U.S. exports to Thailand. The figures represent an increase of 12.9 percent in the value of trade between the two countries. U.S. exports to Thailand increased by 21.7 percent, while US imports from Thailand increased by about 9.4 percent for the same period in 2010. In Asia, Thailand ranks as the United States’ 10th largest export destination after China, Japan, South Korea, Hong Kong, Taiwan, India, Hong Kong, Singapore and Malaysia. The Thai...
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...** ASSESSMENT EXAM QUESTIONS – THESE ITEMS WILL DEFINITELY APPEAR ON THE FINAL EXAM ** CHAPTER 1 |1-113. |Marketing will not happen unless: | |A) |e-commerce is flourishing. | |B) |facilitators are present to simplify exchange. | |C) |middlemen are present to facilitate exchange. | |D) |two or more parties each have something they want to exchange for something else. | |E) |an economy is market-directed rather than planned. | |1-120. |MACRO-marketing: | |A) |is a social process. | |B) |tries to overcome "discrepancies of quantity" and "discrepancies of assortment." | |C) |tries to effectively match supply and demand. | |D) |tries to overcome the many separations...
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