IndividualAssurance of Learning
Hershey grew from one plant to a big company worth up to $ billion company with some different quality chocolate.
Hershey is the largest candy maker in U.S. with a market share of more than 38%
Hershey has been able to make a strong partnership with companies like Starbucks, Kraft, Coca-Cola and much more.
Hershey also have a good number of human resource with approximately 13700 full-time employees and 2300 part-time employees.
The company grows at a faster rate of up to 3 to 4% per year.
Hershey can donate to the UNICEF, red-cross, and to Hershey School of Orphans.
Hershey is the largest chocolate plant is the USA covers an area of 2 million Square feet.
Hershey is also the pasta manufacturer in the USA with a market share of 28.4 %
Hershey has a strong brand name
Hershey has many debts as compared to other companies in the market
It has a very low chocolate market share of 10%.
The company has large geographic distribution but operates under centralized, functional structure, which lacks a divisional president.
The increase in prices for Coca-Cola products is affecting the prices for Hershey products which then reduces customer purchasing by up to 10%.
The company’s board members are aged between 60 and 69 which shows age biases
The company lacks experience in the international market. It only relies on small distributors like McLane, who contribute to 17% of Hershey’s revenue
The company is challenged with the problem of environmental pollution.
The company does not have good advertisement strategies which exceed up to 46%.
The company lacks enough multinational distributors they only have McLane as primary distributors offering only 17% of the company revenue.
The company is also unable to enter into global distribution of their products.
("HSY:Summary for The Hershey Company Common Stock – Yahoo Finance,"2016)
There is a chance of getting into multinational distribution.
There is a chance to make more cocoa brands.
There is also a chance of partnering with more organization in making chocolate flavored products like coffee.
Hershey can make more sugar-free chocolate products for medical benefits
There is an opportunity in reducing environmental conflicts by using reusable packaging. By doing so, the company will build its reputation to the community.
There is a chance in expanding their market to places like China, India, and Asia and increase their revenue to the $10 billion target.
The great customer loyalty gives hope for expansion of the company.
The company can increase the revenue by making other non-chocolate products.
There is a chance to improve the management through the application of better governance strategies.
The company can also improve the communication with the customers so as to improve their products. ("HSY: Summary for The Hershey Company Common Stock – Yahoo Finance," 2016)
Competition from other companies like Nestle which is ranked number 57 out 100 world best brands.
The cost of raw materials of raw materials may rise, for example, dairy products, have increased from between $.14 and $.18 to between $.17 and $.21 per pound.
Penetration of private labels in the market with a great customization at lower prices which would give competition to Hershey.
Increase of people with diabetes problems reduce the sales of Hershey’s product by 10%
25% Increase in some employees who need improvement in their living standards by which put the company in crisis.
Fluctuations of prices of cocoa which might affect the price of chocolate and thus the company’s revenue. For example in due to inflation of cocoa prices, the company’s revenue fell to $ 6.08 billion.
The possibility of getting poor management after the resignation of the current CEO the possibility of succeeding or failing is 50%.
Developing technology increases the cost of production which later affects the prices of product and thus loss of customers.
Being dependent on the US market which offers 60% of Hershey market. If the market fails, the company would eventually fail.
Changing the taste would affect the sales since the customers would take some time to embrace the new product.
("HSY:Summary for the Hershey Company Common Stock – Yahoo Finance,"2016)
Assuranceof Learning Exercise 1F
Myimpression on the strategy club website is on the display of thedifferent materials on top of the page. First of all, the texts areswitching so fast such that some including me, find it to get all theinformation contained in the text. However, I like the fact that webdeveloper made a step in making sure that all the available resourcesare displayed on the page so as to give a viewer a hint of what isavailable. The information provided about the materials available issufficient for a person visiting the page to understand all thetopics. For example, the information about the strategic managementbook is given breaking it into different chapters. By getting thisinformation, a person can get to understand the content of the book.Even the other resources are provided in a way that an individual canhave a quick understanding of what the resources contain ("StrategyClub – The #1 Global Strategic Management Textbook", 2016).
Onthe homepage, we can see we can see the vision of the website writtenin a big font. The reason for using a big font might be so as toattract the attention of people visiting the page. We also have theinformation for the Facebook where its strategies are indicated. Ontop of the page, we have six tabs, five of them having a drop box.These tabs make it easy for a person to obtain the information theyneed. For example, it was easy for me to go through all the studentresources necessary without any struggle. I just needed to click onthe student resources and then click on the relevant resources. Whengoing through the resources, I realized that use of Excel saves thestudents from making mathematical such as calculation and drawinggraphs. The page is critical for students since it provides theinformation needed by students. For example, the chapter updates helpthe student have the current information. The videos and audios arealso important since they make learning enjoyable ("StrategyClub – The #1 Global Strategic Management Textbook", 2016).
HSY:Summary for The Hershey Company Common Stock – Yahoo Finance. (2016).Finance.yahoo.com. Retrieved 28 October 2016, fromhttp://finance.yahoo.com/quote/HSY?p=HSY
TheStrategy Club – The #1 Global Strategic Management Textbook.(2016). Strategyclub.com. Retrieved 28 October 2016, fromhttp://strategyclub.com/