Question
The chart only has five columns and the information i need for chart in listed below. Division Revenues Profits Relative market share position Industry growth
The chart only has five columns and the information i need for chart in listed below.
Division | Revenues | Profits | Relative market share position | Industry growth rate |
- Complete the chart.
- Summarize the information you put in each column of the matrix.
- Provide recommendations on how the Hershey Company can improve current operations.
If is it possible to have reference would be very helpful to get more information on company. Strategy Hershey has recently embarked on a multiyear joint venture with 3D Systems, makers of 3-D printing technology, to start producing new confectionary products using this technology. 3D Systems currently produces two 3-D printers capable of making chocolate. The firms ChefJet is priced around $5,000 and prints single-colored candy much like a plain Hershey candy bar. The ChefJet Pro, priced at around $10,000, can produce multicolored candies. Both printers are capable of printing complex candy designs at a rate of one inch per hour and sizes up to 8 inches by 10 inches by 14 inches. Some analysts, however, do not believe 3-D printing is an option for confectionaries until 2020 due to slow production and high cost factors. The technology will be affordable enough to produce specialized candies for Valentines Day and other holidays around that time but still not affordable enough for mainstream production. Recently, Hershey purchased Brookside-branded candy, famous for its dark-chocolatecovered candies with fruit-juice centers such as pomegranate and blueberry. Hershey purchased Shanghai Golden Monkey Food in 2014. In that year, Hershey began distribution of acquired confectionery and protein-based bean curd snacks into the China modern trade. For all of 2014, Hersheys chocolate sales in various countries grew, including China (12% vs. 7% prior year), Mexico (2% vs. 7% prior year), and Brazil (1% vs. 5% prior year). With the KRAVE acquisition in 2015, and with the companys vision statement, Hersheys strategy is to broaden its product line more by adding healthful snacks to complement its numerous types of chocolate and nonchocolate candies. Since protein snacks are growing rapidly in popularity globally, the KRAVE acquisition may be the first of many for Hershey in that line of business. The acquisition represents one of the first times Hershey has taken a big step outside confectionery. Hersheys 2014 international net sales increased nearly 15 percent, including a net sales contribution of approximately 7 percent, or $54 million, from Shanghai Golden Monkey Food Joint Stock Co., Ltd. (SGM). Excluding SGM and the unfavorable foreign currency exchange impact, Hersheys international net sales increased approximately 10 percent in 2014. Segments Hersheys primary operations and markets are in the United States. The percentage of total Hershey net sales outside of the U.S. was 17.5 percent for 2014, 16.6 percent for 2013, and 16.2 percent for 2012. The percentage of total consolidated assets outside of the U.S. was 35.4 percent as of December 31, 2014, and 19.4 percent as of December 31, 2013. Although Hershey does not report sales and income by product category, the company keeps internal records by three product segments: Chocolate, Sweets and Refreshments, and Snacks and Adjacencies. The Chocolate category consists of fancier options such as acquired Cadbury, traditional products such as Mr. Goodbar and Hersheys Kisses, and Dagoba organic chocolates. Twizzlers, Jolly Rancher, PayDay, and others are included under the Confectionary Products umbrella. Breath Savors, Bubble Yum, and Icebreakers fall under Sweets and Refreshments, and Hersheys baking chocolates and syrups are included under Snacks and Adjacencies. Hershey also offers a full line of sugar-free products. Many Hershey products are naturally gluten free and kosher in nature. Hersheys sales and income by geographic region are given in Exhibit 2. North America accounted for 85.6, 86.8, and 87.5 percent of the companys sales in 2014, 2013, and 2012, respectively. Note in Exhibit 2 that Hersheys income from outside North America has declined steadily. All sales and income from Hershey stores are included in the International and Other segment. Exhibit 2 Hersheys Net Sales and Income (in millions)
2014 | 2013 | 2014 | |
---|---|---|---|
Sales | |||
North America | $6,352.7 | $6,200.1 | $5,812.7 |
International and Other | 1,069.1 | 946.0 | 831.6 |
Total | 7,421.8 | 7,146.1 | 6,644.3 |
Income | |||
North America | 1,916.2 | 1,862.6 | 1,656.1 |
International and Other | 40.0 | 44.6 | 51.4 |
Total | $1,956.2 | $1,907.2 | $1,707.5 |
Exhibit 3 Hersheys Income Statements (in thousands, except per share amounts)
2014 | 2013 | 2012 | |
---|---|---|---|
Sales | $7,421,768 | $7,146,079 | $6,644,252 |
Costs and expenses | |||
Cost of sales | 4,085,602 | 3,865,231 | 3,784,370 |
Selling, marketing, and administrative | 1,900,970 | 1,922,508 | 1,703,796 |
Business realignment and impairment | 45,621 | 18,665 | 44,938 |
Total costs and expenses | 6,032,193 | 5,806,404 | 5,533,104 |
Income before interest and taxes | 1,389,575 | 1,339,675 | 1,111,148 |
Interest expense | 83,532 | 88,356 | 95,569 |
Income before taxes | 1,306,043 | 1,251,319 | 1,015,579 |
Income taxes | 459,131 | 430,849 | 354,648 |
Net Income | 846,912 | 820,470 | 660,931 |
Net income per share | 3.91 | 3.76 | 3.01 |
Dividends paid per share | 2.04 | 1.81 | 1.56 |
Exhibit 4 Hersheys Balance Sheets (in thousands)
2014 | 2013 | |
---|---|---|
Assets | ||
Cash and Cash Equivalents | $ 374,854 | $ 1,118,508 |
Short-Term Investments | 97,131 | |
Accounts ReceivableTrade (Net) | 596,940 | 477,912 |
Inventories | 801,036 | 659,541 |
Deferred Income Taxes | 100,515 | 52,511 |
Prepaid Expenses and Other | 276,571 | 178,862 |
Total Current Assets | 2,247,047 | 2,487,334 |
Net Property, Plant, and Equipment | 2,151,901 | 1,805,345 |
Goodwill | 792,955 | 576,561 |
Other Intangibles | 294,841 | 195,244 |
Other Assets | 142,772 | 293,004 |
Total Assets | $ 5,629,516 | $ 5,357,488 |
Liabilities and Stockholders Equity | ||
Short-Term Borrowings | $ 635,501 | $ 166,875 |
Accounts Payable | 482,017 | 461,514 |
Accrued Liabilities | 813,513 | 699,722 |
Accrued Income Taxes | 4,616 | 79,911 |
Total Current Liabilities | 1,935,647 | 1,408,022 |
Long-Term Debt | 1,548,963 | 1,795,142 |
Other Long-Term Liabilities | 526,003 | 434,068 |
Deferred Income Taxes | 99,373 | 104,204 |
Total Liabilities | $ 4,109,986 | $ 3,741,436 |
Stockholders Equity | ||
Preferred stock shares issued: none in 2014 and 2013 | ||
Common stock, shares issued: 299,281,967 in 2014 and 299,281,527 in 2013 | ||
Class B common stock, shares issued: 60,619,777 in 2014 and 60,620,527 in 2013 | ||
Additional paid-in capital | 754,186 | 664,944 |
Retained earnings | 5,860,784 | 5,454,286 |
Treasury stock: 138,856,786 in 2014 and 136,007,023 in 2013 | (5,161,236) | (4,707,730) |
Accumulated other comprehensive loss | (358,573) | (166,567) |
Stockholders equity | 1,455,062 | 1,604,834 |
Noncontrolling interests in subsidiaries | 64,468 | 11,218 |
Total stockholders equity | 1,519,530 | 1,616,052 |
Total liabilities and stockholders equity | $ 5,629,516 | $ 5,357,488 |
Exhibit 5 Hershey versus Rival Firms, Market Share (percent)
Product Type | Hershey | Mars | Nestle | Others |
---|---|---|---|---|
USA Chocolate | 37 | 28 | 5 | *30 |
USA Nonchocolate Candy | 21 | 35 | 2 | 42 |
Global Chocolate and Nonchocolate Candy (non-USA) | 5 | 14 | 9 | **72 |
Exhibit 6 Hershey versus Rival Firms
Hershey | Nestl | Tootsie Roll | Industry Avg. | |
---|---|---|---|---|
# Employees | 20,800 | 333,000 | 2,000 | 1,730 |
$ Revenue | 7.5B | 105.47B | 541M | 3.79B |
$ Revenue per Employee | 360,575 | 316,000 | 270,500 | 219,000 |
$ Net Income | 840M | 11.15B | 62.6M | 3B |
$ Market Capitalization | 20.7B | 242B | 2.08B | 675M |
% Operating Margin | 0.19 | 0.15 | 0.15 | 0.05 |
Earnings per Share | 3.76 | 3.49 | 1.03 | 0.11 |
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