Hershey Company, a United States-based snack food company has been looking to assume an international role for the past two decades. Founded by Milton Hershey over one hundred years ago, going international has proven to be quite a feat especially when it is chocolate that is the topic for discussion. Currently, approximately five percent of the Hershey Company's total sales result from international business. Principal products sold in the United States, Canada, and Mexico include: Kit Kat, Twizzlers, Rolo Fast Break, Reese's, Hershey Kisses, Oh Henry, Mounds, Swoops and different flavored milks.
The Company manufactures, imports, markets, sells, and distributes its products in over sixty countries worldwide. Primarily focused in North America, the Hershey Company's marketing strategy is to maintain brand equity, induce product innovation and maintain the quality of its products and expertise in manufacturing and distribution.
It is interesting to see how such a well-known company that has been around for one hundred years in North America, faces difficulties in going international. It is common to hear of big-name brands that are doing very well in almost every region of the world, but this company is different from all the others. In the following exposition, different aspects and concepts related to the international expansion and development of the Hershey Company will be presented.
[...] The company sold its Luden's throat drop business and began a $275 million restructuring effort that included 400 job cuts, closure of three Hershey plants and the outsourcing of cocoa powder production. While net income fell during 2001, sales increased by eight percent to $ 4.5 billion. In September, Wm. Wrigley Jr. Co. offered $ 12.5 billion bid for the company, outbidding Nestle, Cadbury and Schweppes, who had teamed up to make a $ 10.5 billion play for the company. [...]
[...] In 1990, the company introduced the Hershey brand to the Japanese market through a joint venture with Fujiya, a confectionary company. The European market was the next target, but it proved to be a difficult market for foreign firms to penetrate given differing European tastes and such well- known firms such as Nestle. This endeavor soon proved to be not so successful. Hershey's branded products are also available through licensing agreements with partners in South Korea, Japan, the Philippines and Taiwan. [...]
[...] For example, if one company comes out with a chocolate syrup, the other 2 also have to do the same. Besides a little variation in branding, packaging, taste and marketing, there is not much product differentiation between these companies. Each company has a similar product line as compared to the others and it is very easy for consumers to switch to another company's products. Hence, if companies are to differentiate themselves, they have to constantly innovate and come out with new products and find ways for their product to be different from the rest. [...]
[...] In this part, we are going to study the firm infrastructure of Hershey's and analyze the Human Resources Management developed in the Company to run the employees and for an efficient business The Corporate Philosophy First of all, it is useful to point out the importance of the corporate philosophy within the Hershey Company. It deeply influences the way of doing business and its management. The Corporate philosophy of Hershey's is based on two major values: the Corporate Governance Guidelines and the Code of Ethical Business Conduct. [...]
[...] In sum, the Hershey Company has developed a very strong corporate philosophy to guarantee an ethical way of doing business. Consequently, it highly influences the human resources management and the organizational structure The Organizational Structure Hershey's is organized into 3 main Divisions: Global Division North American Division International Division We can notice that the Global Division is mainly looking after the strategic orientations in terms of Research and Development, global strategy of the Company (management of the development in the domestic market and abroad) and the Supply Chain organization. [...]
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