Hershey CompanyHershey Company

Kate AndersonJackie HernandezVincent LaPlanteJennifer LewinMi h l S iMichael Sanzari

Thomas Tremblay

Table of ContentsTable of ContentsTable of ContentsTable of Contents Introduction Mission Statement Revised Mission Statement Input Stage◦ External Factor Evaluation (EFE) Matrix◦ Competitive Profile Matrix (CPM)◦ Competitive Profile Matrix (CPM)◦ Internal Factor Evaluation (IFE) Matrix

Matching Stage◦ Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix◦ Strategic Position and Action Evaluation (SPACE) Matrix◦ Boston Consulting Group (BCG) Matrix◦ Internal-External (IE) Matrix◦ Grand Strategy Matrix (GSM)G a St ategy at (GS )◦ Data Collection Matrix

Decision Stage◦ Quantitative Strategic Planning Matrix (QSPM)R d ti Recommendations

Epilogue

IntroductionIntroductionIntroductionIntroduction Milton S. Hershey started his journey in 1876 with his first candy

bar. Hershey started the Lancaster Caramel Company which produced

not chocolate, but a caramel candy. In 1894, Milton added chocolate coating to his caramel candy. 1905 Milton added milk from the nearby dairy farms to make

delicious milk chocolate bars. Hershey Park was opened on April 24, 1907 as a leisure park for

employeesemployees Today the park covers over 110 acres of land including over 60

rides and attractions. In 1909, Mr. Hershey established the Hershey Industrial School

d f d d d l l d l d provides free education and residential services including meals and health care to almost 17,000 kids in need.

As part of the confectionery industry, their products range from candy to gum to baking products. y g g p

Mission StatementMission StatementMission StatementMission Statement(7)“Bringing sweet moments of Hershey happiness to the world every day.”To our stakeholders, this means:(2)(7)Consumers: Delivering quality customer driven confectionery experiences for all occasions.(6)(9)Employees: Winning with an aligned and empowered organization while having fun.(1)(5)Business Partners: Building collaborative relationships for profitable growth with

t li d tour customers, suppliers, and partners.(5)Shareholders: Creating sustainable value.(8)Communities: Honoring our heritage through continued commitment to making a positive difference.

Key:1.Customers2. Products or Services3. Markets4. Technology5. Concern for Survival,, Growth, and Profitability6. Philosophy7. Self-concept8. Concern for Public Image9. Concern for Employees9. Concern for Employees

Revised Mission StatementRevised Mission StatementRevised Mission StatementRevised Mission Statement(7)“Bringing sweet moments of Hershey happiness to the world every day.”To our stakeholders, this means:(2)(7)(3)Consumers: Delivering quality customer driven confectionery experiences for all occasions from the largest chocolate producer in North America.(6)(9)Employees: Winning with an aligned and empowered organization while having fun.(1)(5)Business Partners: Building collaborative relationships for profitable growth with our

t li d tcustomers, suppliers, and partners.(5)Shareholders: Creating sustainable value.(8)Communities: Honoring our heritage through continued commitment to making a positive difference.(4)Hershey’s direct research on consumer preferences ensures we satisfy every taste bud (4)Hershey s direct research on consumer preferences ensures we satisfy every taste bud.

Key:1.Customers2. Products or Services3 Markets3. Markets4. Technology5. Concern for Survival,, Growth, and Profitability6. Philosophy7. Self-concept8. Concern for Public Image9 Concern for Employees9. Concern for Employees

Input Stage Input Stage –– External Factor External Factor Evaluation (EFE) MatrixEvaluation (EFE) Matrix

Competitive Profile Matrix (CPMCompetitive Profile Matrix (CPM))Competitive Profile Matrix (CPMCompetitive Profile Matrix (CPM))

Internal Factor Evaluation (IFE) MatrixMatrix

Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix( )

Strategic Position and Action E al ation (SPACE) MatriEvaluation (SPACE) Matrix

Strategic Position and Action Evaluation (SPACE) Matrix Cont.

FP6Conservative Aggressive

1.  Backward, forward, horizontal integration2.  Market penetration3.  Market development4.  Product development5.  Diversification (related or unrelated)

+6

+5

+4

+3

Conservative Aggressive

( )

+1

+3

+2

CP IP(2.25, 1)

-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

CP IP

6

-5

-4

-3

Defensive Competitive-6

SP

Boston Consulting Group (BCG) Boston Consulting Group (BCG) MatrixMatrix

InternalInternal--External (IE) MatrixExternal (IE) Matrix

Grand Strategy Matrix (GSM)Grand Strategy Matrix (GSM)

Data Collection MatrixData Collection Matrix

Quantitative Strategic Planning Matrix (QSPM)Quantitative Strategic Planning Matrix (QSPM)

RecommendationsRecommendations

Increase joint advertising to market their major productsH h ’ S /I C◦ Hershey’s Syrup/Ice Cream

◦ Hershey’s Chocolate/Graham Crackers (s’mores) ◦ Hershey’s Syrup/Milk

M b d Maintain strong brand image to retain customers Expand product offerings to address wants/needs of health-

conscious consumers◦ Organic line◦ 100-calorie bar

Have R&D department look into advertising and increasing p g gmarket share outside the U.S.

Get finances under control; downsizing yet giving large CEO bonus

EpilogueEpilogueEpilogueEpilogue In 2008 MSNBC had announced that several Hershey

chocolate products were reformulated to replace chocolate products were reformulated to replace cocoa butter with vegetable oil as an emulsifier.

Hershey, as well as other competitors in the industry, is acquiring nonprofit and nutritional products to is acquiring nonprofit and nutritional products to complement their existing ones.

July 2009, Hershey’s ceased production of the Kissables for reasons which they are unwilling to Kissables for reasons which they are unwilling to disclose.

On November 9, 2011, Hershey’s introduced the launch of Cookie Headquarters the one stop holiday launch of Cookie Headquarters, the one-stop holiday baking destination for personalized expert advice and recipes.

Questions?Questions?Questions?Questions?