Hersheys Hot Potato

1
Hersheys Hot Potato

• A representative from each section will be
  chosen.
• We will read the question
• Example Name Hersheys chocolate products.
• Then, each team representative will take turns
  giving their answers with help from their team.
  Teams can shout out the answers, but the
  representative must repeat the answer and hit the
  buzzer.
• The game will continue in turns until the timer
  runs out. Whoever the timer stops on is the
  loser, and the opposing teams will receive
  Hersheys candy.
• Are you ready? Lets go

2
Questions

• Name various types of Hershey Candy Bars.
• Name Hershey non-chocolate products.
• Name different Reeses candies.
• Name different Twizzler candies.

3
Hershey Foods

• Randy Pinson
• Lauren Maher
• Josh Shurtleff
• Bently Peay
• Joseph Kingston
• Daron Atkin
• Jen Woffinden

Milton Hershey 1857 - 1945
4
External Strategic Issues

• International expansion
• Consumer trend toward healthier diets
• Industry shift towards specialized chocolates

5
Internal Strategic Issue

• Responsibility to primary stakeholders

6
International Expansion

• Advantages
• Global trend
• Larger market
• Few existing competitors

• Disadvantages
• Local preferences
• Government regulations
• Cost of differentiation

7
Recommendations

• Currently, only 5 of Hersheys profits come from
  foreign countries
• Necessary to enter international market now to
  establish brand loyalty and a large market share

8
Healthier Diets

• External threat to Hershey is consumer movement
  towards healthier diets
• Obesity under fire

9
Recommendations

• Hershey must adapt by offering lower fat candies
• May consider entering healthy snack market
• Granola bars, fruit snacks, energy bars, etc.

10
Specialized Chocolatesand Desserts

• Threat to Hershey
• Cost-leadership strategy
• Mass production and low customization
• No reputation for specialized gourmet chocolate

11
Recommendations

• Launch new products to satisfy gourmet niche
• Make acquisition without overwhelming new brand
  with the Hersheys name

12
Internal Strategic Issue

• Implications of stakeholders
• Inertia
• Power of local community hinders Hershey
  international growth, innovation and strategic
  change
• Power struggle between Hershey Trust and local
  community

13
Recommendations

• Balance core competencies and unique stakeholder
  environment in order to avoid company inertia
• Satisfy community needs while maintaining
  innovation and efficiency

14
Conclusion

• Enter international market NOW
• Research and develop low-fat candies, as well as
  offering healthier snacks
• Acquire a smaller gourmet confectionary company
• Balance the 4 building blocks while focusing on
  core competencies with the unique stakeholder
  environment