Candy has grown into a more than $21 billion confectionery industry in the US. The confectionery industry produces a universal food product using ingredients from all over the world. The chocolate bar strongly affects agricultural markets as well as the producers of those products. For instance, products produced in the Middle West and other parts of the world such as dairy products, fruits, sugar canes greatly impact on the production of candy. The Hershey chocolate bar sales have been on the rise in recent years. However, the growth rate of both its net income and sales is slightly slower compared to other entities providing same services and they have failed to meet expectations of chocolate consumers all over the world.
In addition, the chocolate bar is facing much competition from many other local, regional, national and multinational firms (Braun et al, 2002). SWOT ANALYSIS Strengths Hershey chocolate bar has various strengths that have contributed to its growth and stability in the market. It has a great market share in the Northern part of America. As a result of the large market share, it has acquired many corporations within the United States.
It has also enabled the company pays shareholders their dividends on time. Due to that many consumers are loyal to the company. The other stronghold in Hershey chocolate bar is that the company’s product prices stay stable most of the time (Cadbury, 2011). The pricing is also reasonable and every person can manage to buy their products. Moreover, it has a great amount of manpower, that is, about 13700 full time employees and 2300 part time employees. Hershey company is also committed in upholding the values of its founder Milton S, Hershey.
These values include provision of high standard of quality, integrity, respect, fairness and honesty. Hershey is an exemplary organization in terms of social responsibility and business ethics (Pallotta and Bolster, 1999). The organization makes an annual contribution of services, products and cash to a number of local and national charitable organizations. A significant part of its profits goes towards operating the Milton Hershey School for Orphaned Children. The firm operates the Milton Hershey School for socially disadvantaged children.
It is also the sole sponsor of the Field Youth Program and Hershey National Track. Finally, it makes contributions to the Children’s Miracle Network, a national program benefitting children hospitals across the United States. Weaknesses Hershey chocolate bar, on the other hand, has a number of weaknesses.
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The Hershey Company. (2014). Hershey’s history. Retrieved from< http://www.thehersheycompany.com/about-hershey/our-story/hersheys-history.aspx > 22nd April 201.