This section of the strategic environment is a realistic analysis of Hershey’s internal resources. The following internal traits portray a resource-based view of Hershey’s core strengths:
COMPETITIVE ADVANTAGE:
The market share is increasing globally. Customer loyalty is very low. Websites are increasing in quality and ease for all users. HERSHEY’S offers many unique products and services to many different kinds of customers. By offering so many distinct products and services, HERSHEY’S is able to achieve a competitive advantage.
STRATEGIC ANALYSIS
CORPORATE LEVEL STRATEGY ANALYSIS:
Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". * Hershey’s corporate level strategy is focused intently on growth and capitalizing on the diversification of its brand in the global market.
INTERNAL GROWTH ANALYSIS:
STRATEGY # 1:
To reduce production and operating costs; improve efficiency (to consolidate and reconfigure its production facilities)
MEASURES:
To reduce production costs and improve efficiency, the company has launched a major restructuring effort with plans to close plants, eliminate jobs, build a factory in Mexico, and outsource some chocolate production. This restructuring effort will reduce the number of production lines by more than one-third, would help it enhance its manufacturing, sourcing, and customer service capabilities. (Page 8) * Close down its California and Canada-based plants * Outsource the manufacture of less profitable items * Build a factory in Mexico (expected to handle 10% of its production volume by 2010) * Net loss of 1500 jobs (11% of the total 14000 jobs)
Page 7: ‘The long-term benefits will include a