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Strategic Decision Making – The Hershey Company1Comprehensive Capstone Case Study BADM/BUOL 638Strategic Decision MakingUniversity of the CumberlandsShruthi Ravi Iyer
Strategic Decision Making – The Hershey Company2Strategic Decision Making The Hershey CompanyBackground Company Overview The Hershey company, North America’s largest chocolate producer and a leader in the confectionary industry worldwide, was started by Milton Hershey in 1894 and is currently headquartered at Hershey, Pennsylvania (David and David, 2017). The Hershey company is known amongst the most respected companies in the world, bringing snacks, community growth,and human opportunity to all corners of the world (thehersheycompany.com).The company is operational in more than 80 countries, serving over 80 brands of confectionaries and snacking items, annual revenues over $7 Billion and about 20,000 employees(David and David, 2017). Hershey’s is known for its iconic favorites such as KitKat, Hershey’s Milk Chocolate Bars, Hershey’s Kisses Chocolates, and Reese’s Peanut Butter Cups, as well as delicious snacks like Krave and Hershey's Snack Mix (thehersheycompany.com). “The Company's principal product offerings include chocolate and non-chocolate confectionery products; gum and mint refreshment products; pantry items, such as baking ingredients, toppingsand beverages, and snack items, such as spreads, meat snacks, bars and snack bites and mixes” (/). While being headquartered at Pennsylvania, the company is expanding its manufacturing and sales across the world so that everyone can have access to the company’s products world over (thehersheycompany.com).
Strategic Decision Making – The Hershey Company3The company derives over 85% of its revenues from United States but is now growing globally with strategic emphasis on China and Mexico (David and David, 2017). A defining feature for the company has been its efficient assembly line that drives low cost products which are affordable by anyone (David and David, 2017).International Presence“The Company has operations, and manufactures product in China, Mexico, Brazil, India and Malaysia, primarily for consumers in these regions. The Company also distributes and sells confectionery products in export markets of Asia, Latin America, the Middle East, Europe, Africa and other regions. This segment also includes its global retail operations, including Hershey's Chocolate World stores in Hershey, Pennsylvania, New York City, Las Vegas, Shanghai, Niagara Falls (Ontario), Dubai and Singapore. Within its International and Other markets, the Company manufactures, markets and sells various brands, as well as other brands that are marketed regionally, such as Golden Monkey confectionery and Munching Monkey snack products in China, Pelon Pelo Rico confectionery products in Mexico, IO-IO snack products in Brazil, and Nutrine and Maha Lacto confectionery products and Jumpin and Sofit beverage products in India” ()MarketHere are some of the market statistics (David and David, 2017).:-