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Category Archives: 2. SWOT analysis

Strenghts

SWOT

Strenghts:

*Hershey established The Milton Hershey School for orphan boys because of giving important of social and environmental responsibility so that public image increases.
*Hershey started firstly the chocolate manufacturing renaissance.
*Hershey has strong name and brand image because of becoming the largest pasta manufacturer.
*Hershey produce diversified products like gum and chocolate.

* Hershey focus on many industry segment(entertainment, resorts,restaurant,commercial) so that Hershey’s name easily spread on large market areas.
* Hershey is very cooperative with students and professors; Hershey has a toll-free number (1-800-468-1714) that students or professors can call to obtain additional information about the company. This suituation make a difference for company.

*Hershey’s facility was designed to include housing, parks and schools for employees so that Hershey motivate employees.

*Hershey predecessor have a more contentious relationship with the board of directors.

 
 

Weaknesses

Weaknesses:

*Hershey has more long term debt than key competitors

*Company is hard put to do company control because of entering different geographic market.

*Advertisement expenses increased by 46 %

 
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Posted by on January 8, 2012 in 2.2. Weakness

 

Opportunities

Opportunities:

 

1.Customers want to richer products/changing tastes
2.Hershey serve dark chocolate for health benefit
3.To eliminate child labor laws for African countries, Hershey involved International Cocoa Initiative Foundation.
4.Efficiency improvements for distribution
5.Hershey has power communication both customers and suppliers
6.The company products cocoa in new areas (i.e. India)
7.Company has a lot of different market area because of increasing in global trade.
8.Hershey has strong customer loyalty.

 
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Posted by on January 8, 2012 in 2.3. Opportunities

 

Threats

Threats:

1.Nestle, Mars and Cadbury are primary power competitors.
2.Hershey ‘s product demand decrease because of increasing diabetes.
3.Society expect to aware greater environmental concern so that Hershey establish treatment facility which has high cost.
4.Increasing base price for chocolate raw materials change according to different geographic areas.
5.Lack of government support to developing countries (poor education of new technologies)
6.Increase cost of manufacturing technology process because of always improving of technology
7.Steady increase of minimum wage of employees for future years.
8.Steady price increase of milk and sugar.
9.Decreasing agricultural areas because these areas use for establishing factory, buıldings.
10.Natural disasters (i.e. hurricanes) are disrupting growth of chocolate ingredients.
11.Increasing fluctuation of exchange rates.                                                                                                                                                                  12.Nestle and Mars have different divisions such as beverages,drink

        How Can We Contribute The Hershey’s Company?

 

        Hershey can establish a chocolate making hobby center for every age of people who want to create a different design of chocolate and this strategy can be costly but public image inrease thanks to this strategy.

    Hershey can establish factories in close to growing up cocoa region for reducing transportation cost. Hershey can produce drink beverage such as schweppes of Cadburry. This strategy can be costly because it have to buy different technological machine and hire employees.

         Hershey needs to continue to focus on the global market.Hershey currently has a limited presencein many areas of the world.They have,however begun to expanded into many new areas and they must integrate into each country’s culture.

        Hershey should continue to provide new cholocolate flavored coffee products in supermarkets and coffee stores ( i.e Starbucks,Joe Mugs).Consumers have grown to appreciate specialty coffees and overall ‘’coffee shops experience’’in recent years.Further,Hershey’s name holds a great deal of clout with many consumers.This allows Hershey to market to new segments,more consumers and participate in new trends.Further,it provides Hershey the oppourtinity to colloborate with the coffee manufacturing industry and other food industries.

Long Term Objectives

  • Company can come up with variety of Gum product and chocolate to increase the market share.
  • Increase the production capacity of Chocolate and Candy
  • Motivate and inspire employee behavior that incentive high performans in different business areas.
  • They have to find out the new channels of distribution and adopt the new channels toincrease the sales
  • Company provide better customer service than competitors.
 
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Posted by on January 8, 2012 in 2.4. Threats

 
 
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