Case Analysis Hershy Food Company Marketing Essay

Case Analysis Hershy food for thought party Marketing EssayThe evolution of global coffee bean patience presents umpteen enkindle details. coffee bean industry on a global scale is a grand. Chocolate, given its tempting qualities is a huge marketable product for many reasons. Hence, the industry itself is huge we hatful speculate. As we ar aware, chocolate is do out of cocoa seeds. In the initial periods, chocolate was expensive to be manufactured. It was only after the industrial revolution in Europe that a remarkable shift in chocolate industry butt end be seen. Chocolate as well comes in a variety of taste. (Allen, 2010 , p. 21)According to the international cocoa organization, chocolate industry on a global scale is a multi-billion industry. During the family 2006 chocolate industry and manufacturer make tremendous gains from sale. Some of the forerunner or top manufacturing companies in accordance to their sales during 2006 were Hershey fodders Corporation, Mars Inc, and Cadbury Schweppes PLC who surpass the list. (ICCO)During 2002 and 2001, the chocolate industry can be concurrently be classified in terms of their sales itself. According to the report available with IOCC, it is mentioned that during the year 2000/2001, the foundation cocoa industry witnessed a remarkable galvanize in terms of their share, be it production, consumption and sales. Most importantly, for year 2000/2001 production of world cocoa or chocolate was estimated to be 2,825,000 tonnes. (ICCO, Annual discover for 2000/2001 , 2001 , p. 13) However, for the year 2008/2009, which is the last available report published by ICCO, cocoa production was estimated to be 3.5 billion tonnes. (ICCO, Annual Report 2008/2009, 2009, p. 3) From these data we can assume that world chocolate industry is a huge business globally. Hence, it would be interesting to analyze the case too related to Hershey diet Company, a chocolate manufacturing giant, which is discussed as follows.Her shey Food Company Performance Audit Report 2002 and 2011Starting the year 2002, Hershey Food Company faced many challenges. Some challenges that were brought to the notice of the scrutinize be on were competition from competitors, namely Nestle and Mars that has increased manifold. The global market shares of Hershey Food Company also fell sharply during the said year. Another challenge facing the smart set chief operating officer then was the component covering value enhancing to its customers worldwide. As the case is, competition from Nestle and Mars are such that it gave a sense of fear for the company steering and its board of director.Hence, the company report that came henceforth was to make a strategic shift to enhance its products, which necessarily raise a question of investment. In that regard, what the company CEO then in the year 2002 recommended was to include realignment plan of US$275 as a shift towards decline of the workforce in the company that will go toward s voluntary compensation. such(prenominal) a plan was sincerely for a company that is known to have been a people champions for long enough. Yet it was probable, and the case can be looked to the declining market share and unpredictability, given the fierce competition from Nestle and Mars. As describe by ICCO, Hershey Foods Company for the year 2005 was dismal to say so, given that it an annual sale was estimated to be US$ 4881 million dollars, four places below its competitors namely, Nestle, Mars, Cadbury and Ferrero. (ICCO, The Chocolate Industry ) So considering these developments the voluntary realignment plan was a necessity felt up the company CEO, Richard H, Lenny.Audit that was carried out for the year 2001 to 2011 brought into face the many unknown facts and figures about Hershey Food Company. The investigating carried out by Attorney general brought to the notice the almost unfamiliar case. What is interesting to note is that audit carried out in the company images that majority of shares in the company was owned by single astronomical shareholder. This is very unlike and came as a surprising performer for auditors as well given the complexness in shareholder and their ownership, besides the links of the company to many charitable initiatives, which posed many questions for auditors. fairly Hershey Food Company represents a community shareholder. This is what the audit report showed about Hershey Food Company.Then strategical Development from 2001 to 2011The strategic development starting March, 2001 till September, 2002 saw many proposals world raised in a orthodontic braces of one year as a factor to push the sales and gross generation initiatives of the company. stipulation the board of director meeting it was figured that Lenny, who was the CEO of the company then and his management styles, was not true by the company stakeholder properly. It is said that Lenny management was somewhat out of the boundary, which brought to fore va riant amongst employee and co-managers in the company.In March 2002, the company strategic team decided to explore upon the sales factor of the company, however, the company CEO was reluctant and was trying to seek alternative to such a decision being made. As a matter of fact, competition also the market was not only posing many shove on the company management, but also brought into contention the test of time that raised a contravention amongst stakeholder and director of the company. Such happening was a pre-cursor to the overall episode encompassing Hershey Food Company. The conflict of idea and recommendation regarding sales objectives between the board of the company and the trust was really interesting to note. dispel of the strategic development from 2001 to 2011 also saw many forms of protest, deep down and outside the company management realms. Such case is sad indeed for a company of repute. The development that came about also somewhat show an increase of 10% sales fo r Hershey Food Company in 2002, that also in a span of 3 months under the lead of Lenny, the company CEO. The success in that regard was accorded to the cost cutting measuring rod initiated by Lenny in context of the realignment plan. However, somewhat the case of conflict as can be seen is that the dream of Lenny and that of the company founder was not match-able in any regard. Such development in parts within Hershey Food Company and its strategic development starting the year 2001 to 2011 brought into contention the very conflict that is reported between the trust and board of directors, which is central to the issue facing the company at the most critical time, and reason enough for the conflict to erupt.Board Meeting OutcomeGiven the audit that was developing in the company, sales of the company was brought to an injunction or ban by a panel of judges. However, following the year 2002 during September, the injunction was cleared and granted.This development saw the introduc tion of Candy Swoops Slices in 2003, which was listed by Productscan as the most innovative product of the year itself. Following the board meeting, the outcome also saw the acquisition of Joseph Schmidt by Hershey Food Company in 2005. (Malhotra, 2009, p. 395)Company Status TodayThe company status today as we have maintained earlier is one amongst the major manufacturers of global chocolate. Many innovative products were introduced by Hershey Food Company in a span of five years. Moreover, to gain its market share lost to its competitors, Hershey Food Company decided to become a fearless product innovator. These somewhat paid dividends, which brought Hershey Candy Slices Swoops which was received highly in the market. (Malhotra, 2009, p. 395)Hence, today Hershey Food Company is a major competitor in the chocolate industry. The battle for the company was won in actuality, and today Hershey and Mars are fighting for the number plot of ground in the global industry, which to some ana lysts is a $73 billion industry annually. (Malhotra, 2009) Hence, these figures itself present many interesting facts about Hershey and where it stands today after the internal turmoil since 2001.RecommendationWhat we learned from the case study and its analysis is that governing issue was one formidable background that can be read and make out. Given the presence of huge number of shareholders in the company and unbending management further ignite the pressure that the company is facing.Hence, it is recommended that corporate govern ace of the company should-Be held by a body of consent that is designated to take decisions and dismantle complex issues in organized way.Bring into contention effective leadership.Finally, production and running(a) Management overall should be streamlined for enhanced process of the company.SWOT Analysis of Hershey Food CompanyHershey main strength as can be analyzed lies with its innovative approach to introduce products that are to the taste of co nsumers. In the history of the company, advertising also have been the main strength that Hershey posses to outdo its competitors. macrocosm a chocolate manufacturing giant, Hershey the board also was one factor which posed many dangers for the company. For instance organisational weakness was one feature overall of Hershey.Yet the opportunities for the company lays within the competitive leader that the company has strive for many years. Given that Mars is on the number spot the factor of it also presents Hershey with an hazard like never before to reclaim its place as the number one manufacturer in the industry. Yet the threat was always there, and recurring as can be seen to the stiff financial audits and leadership of Lenny, which to the boards is not a feasible one as far as Hershey Food Company schema goes.