The Hershey Company has a global supply chain. Weakness are the areas where The Hershey Company can improve upon. The original home of Hershey chocolate in Pennsylvania where headquarter of company is also located. The company has a potential to attract new customers for its existing product range. "The Hershey Company Analysis." According to an estimate, the annual revenue of Hershey's in 2020 was 8.150 billion dollars, and it has increased by 2.05%. Buyer power is generally low in the industry. The Hershey Company Analysis. SWOT analysis is a vital strategic planning tool that can be used by The Hershey Company managers to do a situational analysis of the organization . Monster Beverage presently has a consensus price target of $103.50, indicating a potential upside of 4.65%. HSY. Comparison analysis based on SEC data. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Hershey has aggressive marketing and promotional techniques to ensure brand success. This ratio measures the extent to which a company uses debt to finance its assets. It is also imperative to use technology to create competitive advantage in the industry. This strategy would introduce new products, new consumers and tap new markets. Hersheys main products and services are milkshakes, beverages, cookies, cakes, baked items, and many other products. Equity Multiplier Total Assets / Total Equity. Dividing the after-tax operating profit of the company by its average invested capital reveals that Hershey earns a return on invested capital in excess of 15 percent on the average. The first suggestion in the health advice is to stop consumption of sugar or sugar-based products. Hershey, therefore, should increase its international presence to create a global brand. Heres the swot analysis of Hersheys as follows; Hersheys has built an amusement park in 1906 for children and families along with selling candies and chocolates. The dividends were declared November 2, 2022, and are payable December 15, 2022, to stockholders of record as of November 18, 2022.It is the 372 nd consecutive regular dividend on the Common Stock and . Strategic alliances also aim to control price risks associated with cocoa products, sugar, corn sweeteners, natural gas, fuel, oil and certain dairy products. . Stars: These are the primary products of the company sold in the US and other markets. The Hershey Company. The Hershey Company is a leading manufacturer, seller, and distributor of chocolate and confectionery products in the United States. The . Hersheys is a socially responsible organization because it has done a lot of social philanthropic work over the years. They include Hersheys, Reeses, Hersheys Kisses, Jolly Rancher and Ice Breakers. The company has always focused on one product and experimented with various techniques to perfect it. Moreover, the dynamic analysis of this model can reveal important information. The information analysed using the model can be used by strategic planners for Hershey Company The to make strategic decisions. A high-level overview of The Hershey Company (HSY) stock. 19 July. The growing US economy depicts favourable conditions in its major markets while emerging economies also offer better prospects. Brand equity - Hershey's is ranked the 94th most valued brands in the world and has a Brand valuation at $7 billion. As one of the leading firms in its industry, The Hershey Company has numerous strengths that help it to thrive in the market place. The Hershey Corporation still suffers from a poor role of liquidity. It provided an evaluation window but not an implementation plan based on strategic competitiveness of The Hershey Company. Due to this increase of costs over time and because of the strong competition present, the margins of the brands are decreasing. The profit margins show that the Hershey Company makes profits from its activities after deduction of all expenses. 1180 Words. (2012). Its headquarters are in Hershey, Pennsylvania, which is also home to Hershey 's Chocolate World. Hershey was established in 1894 by Milton S. Hershey. The company has not withdrawn any product from the market because of decline in life cycle. The Porter's Five Forces model can be used to analyse the industry in which Hershey Company The operates, in terms of attractiveness through inherent profit potential. The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well. This is low because the company manufacturers certain products or works with specific third parties to provide products. The group is involved in producing and selling snacks, beverages, garnishing and cooking products, chewing gum, etc. Raw material problems Cocoa is a major raw material used in Hersheys and there is huge consumption of Cocoa across the world in various forms. Need a custom Case Study sample written from scratch by It is a handy technique to evalauate the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) The Hershey Company is facing in its current business environment. It also increased its adjusted earnings-per-share growth to 14% to 15% . 87% indicates management is effectively managing the profits earned based on the owners investment in the company. Your privacy is extremely important to us. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. But the company has a very limited presence in Asian countries likeIndiaand others. This suggests that the stock has a possible downside of 1.3%. Hersheys offers unique and innovative products, taste, design, and packaging. Hersheys uses various online and traditional media channels for the marketing and promotion of its products. The database is updated daily, so anyone can easily find a relevant essay example. O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975); L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970), R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986). We should have a stop loss in place at 234.32though. Expansion We dont think 60 countries is enough for such a loved brand and Hersheys can definitely expand further. Hersheys should consider offering fewer calories-based chocolate to address health-conscious customers. The Hershey Company (HSY) financial statements (2022 and earlier) Company profile. Check out- The Hershey Company PESTEL / PEST & Environment Analysis It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. The Smart Score is a quantitative, data-driven rating system and does not include human intervention. * Hershey's Chocolate Bar * Almond Joy * Kit Kat * Hershey's Kisses According to the ranking of Forbes, Hersheys ranked at the 94th position of the worlds most valuable brand in 2017. (2014). Pour en savoir plus sur notre utilisation de vos informations, veuillez consulter notre Politique relative la vie prive et notre Politique en matire de cookies. It resulted in the form of fake products, supply chain, distribution, and other issues. Strengths The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance. Competitive Overview Out of which, the net income of the chocolate brand was 1.279 billion dollars, and it amplified by 11.22%. Buy Professional PPT templates to impress your boss. Tech Giants. Financial analysis of Hershey Company Hershey earns very high returns on the invested capital than most businesses because of its leading brands and huge market share. However, I will be looking at and comparing their financial data from 2002 to 2004 to each other and to the 2004 industry average. Highly regarded company Hershey stands 249 on the highest regarded companies list of Forbes. Article continues after advertisement Philanthropy efforts - Hershey's has done a lot of efforts towards Education, has its own schools with very good facilities. The Hershey Company generates most of its revenues in the North America markets. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Hershey requires state-of-the-art technologies to enhance its international operations. This would reduce transportation costs significantly. The company has continued to invest in tools and capabilities that support its major brand growth. Innovative chocolate brand Hersheys is known as an innovative and creative chocolate brand. Question marks: Now, the company does not seem to have any questionable products in its portfolio. SWOT analysis a highly interactive process and requires effective coordination among various departments within the company such as marketing, finance, operations, management information systems and strategic planning. There are Mars, M&M and Cadbury which are strong brands in this segment. Currently headquartered in Hershey, Pa., The Hershey Company has expanded its franchise not only in the chocolate making business but also in the amusement park industry with the opening of the Hershey's park, which has increased the company's employment number to about 14,000 employees. It can identify a new segment of customers who prefer healthier chocolate, candy and other products. The company has a strong brand name and awareness globally 3. SWOT for Hershey Chocolate is a powerful tool of analysis as it provide a thought to uncover and . The Hershey Company BDR should start with using AI and Machine learning in areas where hiring process is made better by them. A strong brand name enjoyed by the company under BreathSavers varieties presents the new product with a powerful market entry. Retrieved from https://ivypanda.com/essays/the-hershey-company-analysis/. The profit margin went from 11.3% in 2006 to 4.3% in 2007. The new technology provides an opportunity to The Hershey Company to practices differentiated pricing strategy in the new market. The Hershey Company maintains its dominant position in market by critically analyzing and reviewing the SWOT analysis. Vous pouvez modifier vos choix tout moment en consultant vos paramtres de vie prive. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term. If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template. If not wildly cutting-edge in its introduction of new items, this firm has on the other hand remained consistent in quality. Hersheys offers a large number of products like candies, chocolates, cakes, gums, and many other confectionery products to its customers. You can check my recent posts here, (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_3999100996") }), Your email address will not be published. These resources have focused on supporting individual segments of chocolate, non-chocolate candy and refreshment in the U.S. and key international markets. THE HERSHEY COMPANY ANALYSIS Pursuant to Securities Exchange Act of 1934 Form 10-K & Schedule 14A Proxy Statement BUS 500A Accounting Fundamentals Professor Dennis Kyte February 19, 2012 Olabisi Carr I. The changing tastes and preferences of consumers towards healthier diets will affect the companys generic products. $2,326 million (ranked #14 out of 79 companies in the industry) professional specifically for you? During the period of 2008, the company witnessed a comprehensive increase in its sales of last year, as during 2007 company sales were $4.9 billion, which rose to $5.1 billion in year 2008. Wide distribution Hersheys is distributed in more than 60 countries although it is highly concentrated in some countries and has an average market share in other countries. Consumers are dynamically changing how they shop and what they need, and the current retail environment illustrates the speed and magnitude with which consumer behavior can change. Large tech companies with high revenue growth. To show perspective of how much larger Hershey's is, they had a net sale of over 5 billion dollars in 2008. You can find any type of chocolate under the sun in the portfolio of Hersheys. Industry (SIC) 206 - Sugar And Confectionery Products. The company has Price/Earnings To Growth (PEG) ratio of 2.84. Many customers are end users, wholesalers, convenience stores and grocers. Similarly, Hershey's earnings per share were $2.34 in 2006 and went to $0.93 in 2007. As can be seen from the Wikipedia link, Hersheys is present in more than 50 product variants and this is a huge collection for a chocolate manufacturer. The company has focused on a growth strategy through various ways. The company leadership and the Board of Directors have worked on a broad five-year strategic plan for both domestic and international growth. The global market is so big and diversified for a brand like Hersheys. The best merchandise 5 Pages. The main plants are situated in Pennsylvania, California, Lancaster, Tennessee and Mexico. The headquarter of the company is in Hershey, Pennsylvania,USA. Although Hershey's chocolate is not considered a high quality chocolate brand, it was introduced at a time when chocolate was largely consumed . Now the profit margin is steadily increasing and is currently back up to 8.9%. It important for the brand because chocolate is its main product and it should readily be available worldwide. We will write a custom Case Study on The Hershey Company Analysis specifically for you for only $16.05 $11/page. Recent Quotes. This brand portfolio can be extremely useful if the organization wants to expand into new product categories. A detailed PESTEL Analysis can help managers explore three inter-related environments, i.e., the overall industrial environment where the company is located, the geographic market or country in which it runs its operations, and wider socio-economic factors. Hershey Company operates in over sixty countries throughout the world. In the recent past, Hershey has noted an increase in the market share and revenues in the North America markets and international markets. The total area of the park is121acres and approximately3,384,000people visit the park annually. The Hershey Company's revenue growth from 2016 to 2020 is 9.54%. Required fields are marked *. The customers would get to know immediately the brand name as soon as they see and taste it. The debt-to-equity ratio of Hershey is 4.96 or 496 percent, and its debt-to-assets ratio is .84 or 84 percent. You are free to use it for research and reference purposes in order to write your own paper; however, you We make the greatest data maps. The Hershey Company Analysis. Below are the Strengths in the SWOT Analysis of Hershey's : 1. Stable free cash flow provides opportunities to invest in adjacent product segments. The Hershey Company revenue is $8.1B annually. KitKat is again a brand loved across the world and is one of the highest sold chocolates. Hershey must focus on improving customer experience throughout its outlets. However, the company sells its products under various brand names like Bubble Yum, Almond Joy, York Peppermint Pattie, Twizzlers, Jolly Rancher, Breath Savers, Ice Breakers Candy, Brookside Chocolate, Reese Peanut Butter Cup, Hersheys Kisses, and Hershey Bar. The horizontal integration has allowed the company to grow globally. New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories . Company receives from its activities after deduction of all expenses brands are decreasing may be important in devising strategies home. Plants are situated in Pennsylvania, California, Lancaster, Tennessee and Mexico is a quantitative, data-driven rating and. 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