When using the EFE matrix we identify the key external opportunities and threats that are affecting or might affect a company.
It is headquartered in Hershey, Pennsylvania. In addition to developing different candy brands and improving his chocolate formula, Milton Hershey set out to build a strong infrastructure for his company.
The Hershey factory was built in the Derry Township, Pennsylvania. But Milton Hershey continued to expand and built a company town, which came to be known as Hershey, Pennsylvania.
The Hershey Company manufactures, markets, sells, and distributes chocolate and sugar confectionery products, pantry items, toppings and beverages, and gum and mint refreshment products. Sales, Distribution, and Diversification Hershey sells their products through retail.
Hershey change or make adjustments to its system of operations in different countries. For example, Hershey manufactures, markets, sells, and distributes sugar confectionery, beverages and cooking oil products in India while the company only markets, sells, and distributes chocolate products in China.
Hershey also purchased the rights to manufacture and distribute Cadbury products in the United States. Another way Hershey has diversified is in where its products are sold. Hershey products are sold in over ninety countries, distributed in vending machines, as ingredients for the food service industry, for fundraising, concession stands, convenience stores, and large retailers, and online.
Hershey owns manufacturing operations in Mexico, and has acquired he assets and brands of Grupo Lorena, one of the leading confectionery businesses in Mexico that also has a presence in the US Hispanic community.
To expand into more international markets, Hershey branded products are manufactured by joint-venture organizations in Brazil, India, and China. Hershey branded products are also manufactured by licenses in Japan and South Korea, and by co-manufacturers.
Aside from all of its food products, Hershey has also developed and maintained its own town — Hershey Pennsylvania. The town was developed for the workers of Hershey, so it also contains a community center, a K school, residences, a hospital, a hotel, and a sports arena.
But the biggest attraction in Hershey, Pennsylvania is Hershey Park. The park consists of camping and picnic grounds, a pool, a band shell with daily concerts, and amusement rides such as a model railroad and roller coasters and a carousel.
Today Hershey Park and the Hershey Factory attract thousands of tourists and families a year. While deciding between a wholly owned subsidiary, a joint-venture or another form of FDI, Hershey must look at a myriad of factors.
One such factor is the economic viability of each option. Though prices or sugar and cocoa no longer fluctuate as extremely as they once did, the prices are kept artificially high because of speculators trading in the commodities market, since prices are no longer set based on pure supply and demand.
The transportation of goods also falls into this category, as oil is a commodity and is affected by the same phenomenon as sugar and cocoa.
Hershey needs to evaluate what kind of investments would actually pay off in the future, as well as what the company can afford to do. Another factor is the legal environment of the country Hershey wants to do business with. Hershey must take into account import and export tariffs and quotas when finding suppliers of sugar and cocoa, among other ingredients frequently used.
Labor laws regarding wages, age, and working conditions also have to be complied with, in addition to food and safety regulations with regards to ingredients and production — all of which may vary greatly from country to country.
In trying to comply with the laws of many nations, Hershey has to decide whether to tailor its operations to each locale, or to adopt the same policies through out the company as much as possible.
Political factors will also influence what kind of FDI Hershey is allowed to make. For example, India currently does not make it easy for foreign businesses to set up wholly owned subsidiaries since they are trying to grow the domestic market, but that policy may change with the next election.
Also, the political stability of countries where Hershey does business, and especially where Hershey sources its supplies, is important to the expectation of profits. If the West African region were to have major political conflict, Hershey might not be able to procure enough cocoa beans to maintain operations for long.Exercise 3B Develop an EFE Matrix for Hershey Company The External Factor Evaluation (EFE) Matrix evaluates the external opportunities and threats being faced by the organization.
The EFE matrix is an analytical tool which analysis the strategic position of the organization regarding external threats and opportunities (David, )%(23). The Hershey Company: Aligning inside to win on the outside.
by: Rick Kash Issues: March / April to identify and assess the key forces and factors impacting the confection category in the new marketplace.
The team would then determine what the implications were for Hershey’s and how the company could drive profitable growth in . Staying on the cutting edge of Introducing new brands and product lines, The Hershey Company continues to satisfy their customer’s while continually training their employees to achieve and distribute globally Internal Factor Evaluation Matrix SWOT Summary Continues to focus on increasing our global market shares with horizontal integration.
The Internal Factor Evaluation Matrix Of Hershey S. Hershey’s in Europe By: Kathryn Frehse Business Principles of Marketing Professor Susan Craver December 3rd, The Hershey Chocolate has been dominating the market in chocolate in the United States for many years.
They have expanded to different countries. Hershey Co. Due Diligence Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily.
• To match or surpass company’s long- term goals Using SWOT analysis, Internal and external matrix and comparison of essential data, this study aims to help Hershey’s address its problems.