Oral presentationStep 5

a) SWOT Martrix

SWOT
Strengths S

Hershey has strong brand portfolio
Consumer good will
-strong name and brand image
-strong customer relationships
Strategic acquisitions and joint
ventures
-The Hershey and Godrej venture will
distribute Hershey products in India.
Research and development
-direct research on consumer
preferences and innovations via
Hershey Centre of Health and Nutrition
in 2007
Employee empowerment
-the Hershey family
Operating Profit Margin has increased
to 15% in 2009 compared to 14% in
2008
Weakness W

The company plans to close their
online gift business, which featured
seasonal products and gifts that could
be personalized by the consumer.
Due to global initiatives, the company
projects a reduction of 1500 positions
over next three-year period.
The company plans to discontinue their
Cacao Reserve brand as well as their
Starbucks chocolate partnership
Hersheys iconic brands such as
Hershey Bar, Hershey Kisses, and
Reeses are instantly recognised within
the domestic market, not
internationally.
The companys long term debt
increased from $1,279,965 in 2007 to
1,505,954 in 2008.
Opportunities O

Increased demand from emerging
markets
-organic food products are one of the
fastest growing sectors in the U.S with
a projected value $26.3 billion by 2011
New opportunities for marketing in a
varied media environment
Diversity among consumer tastes
spurring new products
-growing market for premium
chocolate product
- desire for richer products as the taste
changes
Increase in global market space for
products
Increasing health consciousness
-dark chocolate consists health
benefits
Nestls image, however, has suffered
within the global community due to
allegations about sourcing of cocoa
from farms that employed children in
Africa.
SO Strategies

Hershey must leverage its brands
through marketing the ethical ways
they do business
Hershey can promote its historical role
in helping children and providing for its
employees
Hershey can create fast track programs
for developing new products from
employee ideas
WO Strategies

The trust could divest shares through
sale
Hershey can lower costs by
manufacturing products in countries
where they are purchased
Hershey should develop a website for
feedback on new products

















Treats T

Continued slow economic growth
-steady increase of minimum wage for
future years
-intense competition
-lack of government support to
developing countries
An increase in health conscious
consumer purchasing
-increasing obesity
Further fragmentation of the industry
Increase in conversion of sugar to
ethanol
Natural disasters disrupting growth of
chocolate ingredients
Cadbury has a 71% market share in
India, and enjoys a 53% market share
in the chocolate category in Australia.
Nestle recently entered the organic
products segment with projected sales
of $24 billion by 2010.
ST Strategies

Hershey can increase sales through
new partnerships with non-profit
organisation sales
The company can create new products
based off whole foods, fruits and grains
The company advocate for rational
ethanol development
WT Strategies

The company should invest in financial
instruments which generate
sustainable returns above the rate of
raw material cost increases
Hershey must increase its supplier base
while partnering with smaller
confectionary companies
From the matrix above, we think that company should implement the proposed strategies especially manufacturing the products in the
countries where they are purchased in order to lower the cost (WO Strategy). This can help the company to lower the manufacturing cost of
the product and also can increase the sales.
Hershey also should increase its supplier base while partnering with smaller confectionary companies (WT Strategy). This helps them reduce
the production cost where they will discount in raw material that they using in productions. This also indirectly helps the company to have a
good relationship with supplier.