Essay on SWOT ANALYSIS

623 Words Apr 9th, 2014 3 Pages
Case SWOT Analysis

Strengths:

Hershey Foods has grown from a one-product, one plant operation to a $4 billion company with many U.S. and international plants providing an array of quality chocolate and confectionery products and services.

Hershey entered 1996 as the largest candy maker in the United States with 30.7 percent market share.

Hershey is the largest pasta manufacturer in the United States with 28.4 percent market share.

Hershey Foods Corporation is committed to the values of its founder Milton S. Hershey—the highest standard of quality, honesty, fairness, integrity, and respect. The firm makes annual distribution of cash, products, and services to a variety of national and local charitable organizations. The
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Concern for the natural environment is an issue Hershey should address before competitors seize the initiative.

The average price of Cocoa beans rose 25.8 percent in 1995, following a 28.9 percent rise in 1994. World production is not keeping pace with increased consumption. The price per pound in 1995 was $0.72 and is expected to continue increasing. This is a major problem for Hershey because even a small price increase at the retail level severely restricts consumer buying.

Some analysts contend that Hershey International as a separate division producing and selling diverse products is an ineffective organizational design.

Excessive dependence on the US market, and a few distributors for revenue generation restricts.

Opportunities:

China and India are huge untapped markets. Malaysia, Indonesia, Vietnam, and Thailand also are untapped, So, Hershey has the opportunity to gain a foothold in those Countries.

There is another opportunity for Hershey to develop environmentally safe products and packages, reducing industrial waste, recycling, and establishing an environmental audit process are strategies that could benefit Hershey.

Another opportunity is that Hershey diversifies more into non-chocolate candies because that segment is growing most rapidly in foreign countries like U.S & U.K.

Enhancing market presence through acquisitions and licensing agreements.

Streamlining business through restructuring operations and

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