Essay about Case Study-Hershey

3706 Words Nov 6th, 2010 15 Pages
I. INTRODUCTION

Think of Hershey Food Corporation and chocolate comes immediately to mind. Hershey is the leading manufacturer of chocolate in North America but that is not all what Hershey is all about.

Considering the humble beginnings of its founder, Milton Hershey, Hershey Food Corporation’s success is as sweet as the chocolates it produces and as lovely as the candies it offers its customers.

But before gaining its sweet success, it had undergone business dilemma like bankruptcy. But due to good governance, it was able to turn this dilemma to strengths. Its growth in its local markets can be described to be vast. In a few years of establishment, it had large acquisitions of different companies which
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• Hershey has grown from a one-product, one plant operation in 1894 • Today, The Hershey Company is the leading North American manufacturer of chocolate and non-chocolate confectionery and grocery products

V. TIME CONTEXT

2005- Present

VI. STATEMENT OF THE PROBLEM

Hershey’s global market share in the chocolate confectionery industry is less than 10 percent, lowest among its competitors. A major strategic issue facing Hershey today is where, when, and how to best expand geographically.

More and more firms are becoming environmentally proactive in their manufacturing and service delivery processes. Environmentally responsible firms market themselves and their products as being “green-sensitive.” Concern for the natural environment is an issue Hershey should address before competitors seize the initiative.

Some analysts contend that Hershey’s functional structure is an ineffective structural design. Would divisional structure by product be more effective? The product divisions could be Chocolate, non-chocolate, and grocery. Or would a divisional structure by geographic reason be more effective?

Should Hershey acquire firms in other foreign countries? Should Hershey diversify more into non-chocolate candies since that segment is growing most rapidly? Should new manufacturing plant be built in Asia or in Europe?

VII.

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