Hersheys Food Corporation
The Hershey Food Corporation is a very successful and quality business. Many products are manufactured by this corporation. Most relating, but not limited to chocolate. The corporation plays a role in deciding where products are produced. Hershey’s has expanded to both Canada and Mexico, which calls for many corporate decisions. There are an amazing amount of products associated with Hershey. These include Jolly Ranchers, Hershey Kisses, Hershey drink mixes, the entire line of Reese’s products as well as good old fashion chocolate bars. These products serve in the candy/snack foods division of sales. Society could do without them… but why would we want to?
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
As successful as Hershey’s is, some factors have influenced set backs for the company. Devaluation in Brazil, Russia’s economic collapse, restructuring in China and the Asian financial crisis. World economics effect the Hershey’s company as well. Another closer to home setback occurred with a pasta divestiture. Evidently they tried a new venture in the pasta industry, but sold it because it just wasn’t making enough money.
Mr. Hershey treated his employees exceptionally well, ever since he first opened his business. His personal philosophy revolved around sharing wealth with others and helping who he could. Even in the Great Depression he employed as many people as he could. His business helped support an entire town, built around his factory. Today this same philosophy is used for his employees. Along with this, the Hershey Corporation has really gotten no negative feedback from the public or government.
This corporation isn’t very likely to fail. The profits are ever rising. Even if one product in the Hershey line fails, there are many others to take its place. Sales also are strong because of the oligopolistic market in chocolates. The company’s growth is always evident. Each year, new branches of offices or factories are added, new products are introduced, or successful divestitures pursued. Technology for the Hershey company, however, seems a little slow. They are just now exploring the idea of internet sales. Their website has a lot or information, but has only acquired so after only a few years.
When looking at this company I would consider it a very safe investment. The stocks right now aren’t cheap, because of the success the company has had already. Hershey is a household name. I don’t see a high chance for the Hershey Corporation to go out of business any time soon.