Hersheys should consider offering fewer calories-based chocolate to address health-conscious customers. THE HERSHEY COMPANY. The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the The Hershey Company to develop four types of strategies: The main purpose of SWOT matrix is to identify the strategies that a firm can use to exploit external opportunities, counter threats, and build on & protect The Hershey Company strengths, and eradicate its weaknesses. Billion dollar sales every year Hersheys has a huge 7.5 billion dollars per annum as of 2017. According to an estimate, the annual revenue of Hersheys in 2020 was 8.150 billion dollars, and it has increased by 2.05%. To ensure its business's growth and success, Hershey's has established a vision of a company that produces classical treats as well as new and diverse goods for people who may come from different backgrounds and have different lifestyles but are connected by the liking for chocolate goods. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. The first suggestion in the health advice is to stop consumption of sugar or sugar-based products. Fluctuating exchange rates affect the companys earnings. The Hershey Company must observe food quality and safety regulations to avoid legal challenges. The EV/EBITDA NTM ratio of The Hershey Company is significantly higher than the average of its sector (Food Products): 8.02. We will write a custom Case Study on The Hershey Company Analysis specifically for you for only $16.05 $11/page. Need more investment in new technologies. Over the last fiscal five years, the companys net sales have increased from $ 5,298,668 to $ 7,146,079 between the year 2009 and 2013. 12/31/2021 (filed 2/18/2022) Revenue. Generally, the companys major markets in North America are politically stable and therefore there are limited political risks. Since the start of the company and the creation of the original chocolate bar, they have acquired many more candy and snack food brands to expand their market share within the Confectionery industry. New trends in the consumer behavior can open up new market for the The Hershey Company . It is also imperative to use technology to create competitive advantage in the industry. The brand to be examined in this essay is the Hershey Chocolate Company. Competitor Analysis The Hershey Company (HSY) competes in the Global Candy and Chocolate Manufacturing industry. Currently headquartered in Hershey, Pa., The Hershey Company has expanded its franchise not only in the chocolate making business but also in the amusement park industry with the opening of the Hershey's park, which has increased the company's employment number to about 14,000 employees. The Hershey Company prides itself as being the largest manufacturer of chocolate and confectionery products in North America. Hersheys does not use fair trade practices as expected from such a top company. The main plants are situated in Pennsylvania, California, Lancaster, Tennessee and Mexico. Order Now - The Hershey Company SWOT Analysis The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It would also be beneficial if the company establishes some cocoa processing factories near its major cocoa sources. A number of theoretical concepts and models shall be applied in analyses, which would include SWOT, generic strategy VIRO/resources and competences, PESTEL, Porters five forces, portfolio analysis using the Boston Matrix (BCG), Ansoff matrix, the type of strategy, and feasibility of the recommendations. The Hershey Company financial statements: Balance - Financial Analysis As its mission statement, the vision statement of Hershey is clear and easy to understand. The increasing price of the main ingredient pressures the company to raise the retail price, and that impacts sales and the companys profitability. Johnson, G., Scholes, K., & Whittington, R. (2008). The Hershey Company is the largest chocolate manufacturer in North America. IvyPanda. En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. The Hershey Company - City University of New York Industry (SIC) 206 - Sugar And Confectionery Products. As a result, procuring the right amount of Cocoa is a major cost and bottleneck of production. The Hershey Company believes in the potential and capabilities of its human resources, brands and processes. The company spends around 520 Million Dollars a year on advertising and marketing. The company has adopted a consumer-driven approach for its core brand investment in both U.S. and key international markets to drive its low-cost provider strategy. The Hershey Company (HSY) Latest Stock Analysis | Seeking Alpha "The Hershey Company Analysis." If not wildly cutting-edge in its introduction of new items, this firm has on the other hand remained consistent in quality. Hershey Mission Statement and Vision Analysis - How I Got The Job The Hershey Company BDR should fully protect and keep safe all sensitive . Hershey's SWOT Analysis, Competitors & USP | MBA Skool Health awareness More and more people are becoming aware of the benefits of a healthy lifestyle especially after many blogs and news programs have started focusing on these. The Hershey Company (HSY) Stock Price Today, Quote & News As one of the leading firms in its industry, The Hershey Company has numerous strengths that help it to thrive in the market place. There should be a human oversight over all the process and a timely and continuous audit should be put in place to correct the algorithm biases. Innovative chocolate brand Hersheys is known as an innovative and creative chocolate brand. The company must continue to maintain good relations with all its employees in different regions. Hershey Foods Corp recorded earning per share (EPS) of 6.72. HSY Competitors 2022 | Hershey Alternatives - MarketBeat The Hershey Company: Strategic Audit of the Organization SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. The Hershey Company. Hershey Company operates in over sixty countries throughout the world. During the period of 2008, the company witnessed a comprehensive increase in its sales of last year, as during 2007 company sales were $4.9 billion, which rose to $5.1 billion in year 2008. 233.65 is the first level of resistance above 232.5, and by rule, any test of resistance is a short signal. Monster Beverage presently has a consensus price target of $103.50, indicating a potential upside of 4.65%. Its going to analyze the internal and external factors impacting the worlds leading chocolate company. Their HSY share price forecasts range from $200.00 to $255.00. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. must. Web. Retrieved from https://ivypanda.com/essays/the-hershey-company-analysis/. The Hershey Company or the Hershey's was founded by Milton Hershey in 1894 in USA. Dividing the after-tax operating profit of the company by its average invested capital reveals that Hershey earns a return on invested capital in excess of 15 percent on the average. Additional research for this market report was completed by visiting The Hershey Company online and through independent research using the internet. Failure to bid for Cadbury was viewed as a poor strategic decision based on international expansion strategies, but the company defended itself by noting that Cadburys assets did not support its framework. You can email us to get an example document of Weighted SWOT analysis. Threats of substitutes are high for the company. Search for: Search form clear. They are just awesome. Hershey Company HSY Technical Pivots with Risk Controls The company leadership and the Board of Directors have worked on a broad five-year strategic plan for both domestic and international growth. The increment was attributed to increased sales volume of core brands and new products in the US and the international market. The Hershey Company BDR should start with using AI and Machine learning in areas where hiring process is made better by them. Given the scale of expansion and different geographies the company is planning to expand into, The Hershey Company needs to put more money in technology to integrate the processes across the board. Below are some of the company's popular brands. These 2 figures show the amount of respect for the brand. SWOT analysis is a vital strategic planning tool that can be used by The Hershey Company managers to do a situational analysis of the organization . Amazing Business Data Maps. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. In fact, it has a very low footprint in India and similar countries where there is a lot of scope for expansion because of the population. Order Now - The Hershey Company SWOT Analysis, Check out- The Hershey Company PESTEL / PEST & Environment Analysis, Read - The Hershey Company Porter 5 Forces Analysis & Industry Analysis, Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of The Hershey Company, Hooker Furniture Corporation SWOT Analysis, Hyster-Yale Materials Handling, Inc. SWOT Analysis, Industrias Bachoco, S.A.B. The industry requires specialized equipment. High competition One of the major threat to the establishment of Hersheys is that there is very high competition in the chocolate segment. The Hershey Company Revenue - Zippia Hersheys main competitors are Mondelez International,NestleUSA, and Mars. It has predicted that its net sales could reach $ 10 billion by the end of the fiscal year 2017 based on the solid organic growth witnessed in the past. SWOT analysis is a vital strategic planning tool that can be used by The Hershey Company managers to do a situational analysis of the organization . (2010, February 4). According to the ranking of Forbes, Hersheys ranked at the 94th position of the worlds most valuable brand in 2017. "The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products, with revenues of over $4 billion and more than 13,000 employees worldwide" (The Hershey Company, 1995-2005, para. The Hershey Company has focused on diversification through new markets in Asia, Africa and the Middle East (international markets). If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template. ensure the integrity of our platform while keeping your private information safe. Hershey uses its financial resources for value enhancing strategic acquisitions. This lack of choice can give a new competitor a foothold in the market. Dogs: Some chocolate, sweets and refreshment products sold in the international markets. Companies can only achieve economies of scale through mass production. (adsbygoogle = window.adsbygoogle || []).push({}); The percent owners' equity ratio for Hershey Company is 22. En cliquant sur Accepter tout, vous acceptez que Yahoo et nos partenaires traitent vos informations personnelles et utilisent des technologies telles que les cookies pour afficher des publicits et des contenus personnaliss, et des fins de mesure des publicits et des contenus, dtude des audiences et de dveloppement de produit. Competitor Analysis: Hershey's - 1180 Words | Bartleby There are Mars, M&M and Cadbury which are strong brands in this segment. Because Hersheys mainly deals in chocolates, it needs to have the right pull so that a strong distribution network is created. Industry Analysis: The Hershey Company - 761 Words | Cram The Hershey Company PESTEL Analysis - Case48 "The Hershey Company Analysis." SWOT Analysis of Hershey | Free SWOT Analysis The horizontal integration has allowed the company to grow globally. The Hershey Company. All rights reserved. Good Returns on Capital Expenditure The Hershey Company is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. The Hershey Company (HSY) financial statements (2022 and earlier) Company profile. The brand should keep innovating new products, designs, tastes, packing, technology, supply chain, distribution, and presentation. Most importantly, it has helped Hersheys to become a credible brand. This is low because the company manufacturers certain products or works with specific third parties to provide products. Check out- The Hershey Company PESTEL / PEST & Environment Analysis This research along with the show more content This brand portfolio can be extremely useful if the organization wants to expand into new product categories. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Executive summary Hershey Company is the largest producer of chocolate products in North America with sales from 2009 climbing up by 5.9% to settle at $1.17 billion. Recent Quotes. The company may also focus on emerging markets in Asia, Africa, South America and the Middle East. Hershey CEO defends company strategy. Hershey Foods Stock Analysis - 2022 | HSY - Macroaxis Large tech companies with high revenue growth. The headquarter of the company is in Hershey, Pennsylvania,USA. It resulted in the form of fake products, supply chain, distribution, and other issues. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. The health consciousness and exercising trends have made people diet conscious. New customers from online channel Over the past few years the company has invested vast sum of money into the online platform. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. It would help the company to make the product available at different location points worldwide. You can check my recent posts here, (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_3999100996") }), Your email address will not be published. Hershey has a consensus price target of $226.93, indicating a potential downside of 1.03%. Latest report. Health issues, fake products, increasing ingredient cost, and lower control are the main issues. Not highly successful at integrating firms with different work culture. This investment has opened new sales channel for The Hershey Company. Our Chief Executive Officer, President and Chairman of the Board, Michele Buck, set a vision for the company to be an innovative snacking powerhouse. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. The original home of Hershey chocolate in Pennsylvania where headquarter of company is also located. The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well. We make the greatest data maps. One of the reason why the days inventory is high compare to its competitors is that The Hershey Company is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. It has contracts with third parties with the aim of enhancing its strategic advantage and cost-effective production in product sourcing. KitKat license One benefit to Hersheys is that because of its huge market share, Hersheys in partnership with Nestle also has the USA distribution for KitKat. The Hershey Company could protect its market shares and acquire new customers through special offers and price-cutting strategies on many of its candy and chocolate products. HERSHEY, Pa., Nov. 4, 2022 /PRNewswire/ The Board of Directors of The Hershey Company today announced quarterly dividends of $1.036 on the Common Stock and $0.942 on the Class B Common Stock. The company has a potential to attract new customers for its existing product range. Hershey Mission and Vision Statement Analysis - NCESC Based on Fern Fort University extensive research some of the strengths of The Hershey Company are . End users have low bargaining power while many customers are loyal to the brand. Led by Michele Buck, Hershey has a vision of becoming an innovative snacking powerhouse. At the same time, the cost of sales rose to 2.1 percent in 2013 relative to 2012. Scale your grade expectation bar HIGH! Hershey Company The SWOT Analysis / SWOT Matrix - Essay48 Due to this increase of costs over time and because of the strong competition present, the margins of the brands are decreasing. * Hershey's Chocolate Bar * Almond Joy * Kit Kat * Hershey's Kisses Hershey Revenue 2010-2022 | HSY | MacroTrends Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. With more cash in bank the company can invest in new technologies as well as in new products segments. A Case Analysis Abstract The Hershey Company, known until April 2005 as the Hershey Foods Corporation and commonly called Hershey 's, is the largest chocolate manufacturer in North America. The firm had 2:1 split on the 16th of June 2004. The percent rate of return on equity for Hershey Company is 99. A strong brand name enjoyed by the company under BreathSavers varieties presents the new product with a powerful market entry. It is a handy technique to evalauate the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) The Hershey Company is facing in its current business environment. The Hershey Company's Marketing Strategy - Business-Essay.com The Hershey company currently has a global outlook with the required resources and tools to support winning strategies and promote the five core brands, namely Hersheys, Reeses, Hersheys Kisses, Jolly Rancher and Ice Breakers. Hershey Company Case Analysis | Researchomatic The The Hershey Company stock analysis is based on the TipRanks Smart Score which is derived from 8 unique data sets including Analyst recommendations, Crowd Wisdom, Hedge Fund Activity, Media Sentiment and multiple Technical stock factors. Adverse weather conditions and crop diseases have affected cocoa production and cocoa quality. They now consider the brand as part of their life and family. Hersheys offers unique and innovative products, taste, design, and packaging. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. Consumers are dynamically changing how they shop and what they need, and the current retail environment illustrates the speed and magnitude with which consumer behavior can change. As chocolates themselves are heavily sugar based, more and more people are avoiding chocolates and consumption is dropping. The Hershey Company Company Analysis - 952 Words | Essay Example Hershey is most famous and renowned chocolate manufacturing company in North America. SWOT Analysis of Hershey's | Business Management & Marketing There are gaps in the product range sold by the company. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. SWOT is a static assessment - analysis of status quo with few prospective changes. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. However, the company sells its products under various brand names like Bubble Yum, Almond Joy, York Peppermint Pattie, Twizzlers, Jolly Rancher, Breath Savers, Ice Breakers Candy, Brookside Chocolate, Reese Peanut Butter Cup, Hersheys Kisses, and Hershey Bar. 05% indicates the company owns an adequate portion of its asset. The database is updated daily, so anyone can easily find a relevant essay example. Snacks segment Besides chocolate, Hersheys can also snacks segment though this will create more diversification then focus on the brand. The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as The Hershey Company to increase its profitability. The company has focused on a growth strategy through various ways. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. The vision is anchored in four interconnected strategies: Driving growth by capturing more snacking occasions. The growing US economy depicts favourable conditions in its major markets while emerging economies also offer better prospects. Over a period of time, the bottom line is getting hit because of these costs even if the top line is consistent. It produces chocolate and non-chocolate confectionery as well as baked sweets. The companys major products include chocolate and sugar confectionery products; pantry items, such as baking ingredients, toppings and beverages; and gum and mint refreshment products. The Hershey Company (HSY) Stock Price, News, Quote & History - Yahoo! Hershey requires state-of-the-art technologies to enhance its international operations. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Exploring corporate strategy: Text & Cases (8th ed.). Hershey Company The is carefully reviewing its SWOT analysis and using it to make strategic decisions. Third, it has strategic alliances on long-term basis with several companies to manufacture, sell or distribute some specific products. The Hershey Company, popularly known as Hershey's, is one of the leading chocolate manufacturers in the world. It provided an evaluation window but not an implementation plan based on strategic competitiveness of The Hershey Company. Analysis of The Hershey . The marketing of the products left a lot to be desired. We're developing new tools, data and analytical ways of working that allow us to work even closer with our retail . Business Address: 19 EAST CHOCOLATE AVENUE HERSHEY, PA 17033 . Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker.
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