A. TWO KEY LESSONS LEARNT FROM THIS CASE
Hershey Company is famous known for being the biggest manufacturer of chocolates and confectionery products in North America and grocery products in over 60 countries worldwide. In 2009, Hershey sales up to 3.23 percent. Advertising expenses increased by 46 percent as the company continued to promote iconic brands such as the Hershey Kiss and Reese’s products. Due to lower commodity prices, the company plans to discontinue their Cacao Reserve brand as well as their Starbucks chocolate partnership. The company also plans to close their online gift business. The company expanded its global presence via joint ventures in china and India.
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Therefore, It captures the importance not only for healthy but also the happiness of eating chocolate.
C. Mission Statement
The current mission of the Hershey company is
“Bringing sweet moments of Hershey happiness to the world everyday”
To our stakeholders, this means:
* Consumer: Delivering quality consumer driven confectionery experiences for all occasions.
* Employees: Winning with an aligned and empowered organization while having fun.
* Business Partner: Building collaborative relationships for profitable growth with our customers, suppliers, and partners.
* Shareholder: Creating sustainable value.
* Communities: Honoring our heritage through continued commitment to making a positive difference.
The current mission consists of the following characteristics:
2. Concern for survival, profitability, growth
5. Concern for public image
6. Concern for employees
Mission statement is often the most visible and public part of the strategic management process. The current mission is sufficient to remind the company on their attitude and outlook. However, it is important to include the nine characteristic, as mission statement would be more effective.
From our analysis, the current mission lacks of another three characteristics, which are products, market, and technology. These four characteristics are important for the company in the long-term development.
Thus, we think that the current mission can be improved as follows:
“Bringing sweet moments of chocolate Hershey happiness to the world every day”
To stakeholders, this means:
Consumer: Delivering quality consumer with the lastest technology to drive experiences for all occasions.
Employee: Winning with an aligned and empowered organization while having fun.
Business Partners: Building collaborative relationships for profitable growth with our customers, suppliers, and partners in the international market.
Shareholders: Creating sustainable value.
Communities: Honoring our heritage through continued commitment to making a positive difference.
D. External Audit
1. Organic foods products are one of the fastest growing sectors in the United States with a projected value of $26.3 billion by 2011.
2. Seasonal sales such as Halloween and Valentine's Day account for 10 percent of the annual sales in the industry.
3. Nestle's image, however, has suffered within the global community due to allegations about sourcing of cocoa from farms that employed children in Africa, as well as its marketing tactics used to promote its infant milk substitutes in developing nations.
4. Consumers are increasingly aware of the nutritional value of various product ingredients with purchase decisions reflecting a preference for organic and nonadulterated products.
5. Confectionery products include chocolate, gum, cereal bars, and sugar confectionery products with a...