HERSHEY’S
Adopt-a- Company Project
Submitted by
Amira Loveridge
&
Zach Denett
Prepared for
Ann Murano
Introduction to Business
May 4, 2009
“Bringing sweet moments of happiness to the world everyday” has been
the mission statement of one of the world’s greatest candy making company
since they were founded in 1894. With more than 13,700 employees around the
world and making approximately 73 products, Hershey’s is also one of the largest
companies in the candy industry located in the small town of Hershey,
Pennsylvania. Milton S. Hershey, the founder of the company, had the honor of
the city’s naming bestowed upon him. After working for someone else for several
years, Hershey decided that he would get his feet wet and set out to start his own
business. The doors opened in 1876 and the business was able to survive for six
years, but ultimately was one of his first and only failures. After his first business
went under, he moved down to Denver, Colorado and started working for a
confectioner (a maker of sugary candies and other sweets) who made caramel
candies with fresh milk. After working for the man in Denver he returned to his
hometown of Lancaster with the same determination as he when first started
making candy, but he now had the skills and knowledge that he learned while he
was in Denver. He once again attempted to start his own business and this time
it was a huge success. His new caramel shop took off having around 1400
employees and Hershey began shipping his products all over the United States
and even into Europe.
After several years in the caramel industry, Milton Hershey
discovered his love of chocolate making. After a short time of perfecting his
formula for milk chocolate, the Hershey bar came into being. It soon became
quite popular amongst the majority of the population of the world. The demand
for chocolate was great because chocolate had once been a luxury only the rich
could indulge in. Because of this, the Hershey Company was soon born,
bringing affordable chocolate into the lives of those who had once been unable to
afford it.
The Hershey Company has five major officers, David J. West is the
President and CEO of the company, Humberto P. Alfonso is the Senior Vice
President and the CFO, C. Daniel Azzara, is the VP of Global Research and
Development, John P. Bilbrey, Senior VP and President of Hershey North
America, and Charlene H. Binder, Senior VP and Chief of People Officer.
Hershey’s is a corporation that is very aware of their surroundings.
They treat their employees fairly and make their company a fun and safe place to
work. They consider it of the up-most importance to protect and conserve
resources used to produce their products, while their competition may not.
Hershey’s also makes an effort to ensure that their packaging is environmentally
friendly. They reduce the amount of packaging used as much as possible and
recycle whenever they can. Thirty-three percent or more, depending on the
package, of the cardboard used in their shipping cases are made from recycled
materials. They also make an effort to keep their green house gasses at a
minimum and measure to keep it that way. In addition, Hershey’s conserves
energy as well. They have switched to energy-efficient lighting in all their
facilities and are making an effort to conserve fuel by investing in fuel-efficient
transportation methods. As well, Hershey’s is conserving our fresh water supply
by using it wisely. They recycle the water used for their milk-condensing process
to water their onsite landscaping and purifies water used onsite as well. The
Hershey’s company is very environmentally friendly right down to how they
process their coca growing. Their coca plants are grown in warm humid tropical
areas. The plants need a delicate type of loose oil so the roots can grow more
easily, the plants also need protection from the sun and wind in order to survive.
Other candy companies don’t have the name advantage Hershey’s does
either. With a long history of quality confections at a reasonable price and a
variety of products, Hershey’s has a clear advantage over other companies in the
industry.
Hershey’s makes a habit of treating everyone fairly in every aspect
of production. They have made commitments to their stakeholders to ensure just
treatment. They have pledged to “deliver quality consumer-driven confectionery
experiences for every occasion” to their consumers as well as to win with “an
aligned and empowered organization…while having fun” for their employees.
They also have promised to build “collaborative relationships for profitable growth
with our customers, suppliers and partners” to ensure success for the business
partners and “create sustainable value” in order to please the shareholders.
Most of all, Hershey’s promises to make a practice of “honoring our heritage
through continued commitment to making a positive difference” in their
communities.
The annual revenue for the fiscal year was $5,132,768,000. In
December of 06 the Board of Directors approved a $250 million share
repurchase program in order to take more control of the company’s decision
making process. In 2008 Hershey spent 262.9 million in cash dividends on
common stock. Also in 2008 Hershey increased their net sales by 3.8%, in part
to do with their large promotional budget they spent $766.6 million in 2008 alone
for their promotions. In order to view more information from the annual report
please go to www.thehersheycompany.com then click on the link which is located
on the left sidebar this website is also where we found all of our information that
is in this paper.
In the future, we predict that Hershey’s will continue to grow and
prosper, coming up with new ideas for candies with which to make the world a
way sweeter place to live. Hershey’s is a very successful company with a variety
of products that grace the shelves of stores everywhere. The diversity among
their products allows for a wide customer base to bring in revenue and roots in
many countries. All in all, Hershey’s is a great company with a bright future.
Hershey’s will be around for a long time because of the great decisions they have
made in the past and most likely will continue to do so in the future.