Sweet Moments MGT/330 April 25, 2010 Sweet Moments Change is inevitable. Whether the changes are internal or external, companies that do not keep up with change will become unstable. The four functions of management are affected by these internal and external forces. In order for a business to succeed, the business must know change is occurring and what changes may occur in the future. With approximately 13,700 employees and net sales of $4 billion, The Hershey Company has identified theses internal and external factors and uses the four functions of management to remain a growing organization.
For a company to be successful, management needs to take into account the different factors that may affect their goals. A useful acronym to remember is S. W. O. T. , which stands for [internal] strengths and weaknesses, and [external] opportunities and threats (Bateman & Snell, 2009). A good company can use their strengths and opportunities to counteract their weaknesses and threats. A potential threat for The Hershey Company is the environment and growing conditions of cocoa. Cocoa is the primary ingredient in chocolate, and a loss of cocoa suppliers, or poor quality cocoa would hugely devastate the industry.
The Hershey Company is aware of this external factor, and uses internal strengths to keep this threat from becoming a reality. The Hershey Company is a member of the World Cocoa Foundation, and has taken steps to preserve the ecosystem and start programs that will conserve the environment in which cocoa is farmed (The Hershey Company, 2010). This is just one of the many things Hershey’s has done to protect the company as well as the cocoa industry. By making a plan to be involved with the cocoa industry, and joining the World Cocoa Foundation, The Hershey Company has taken an active step in keeping a potential threat at bay.
Leadership from both The Hershey Company and the World Cocoa Foundation will be required to keep these programs running. Monitoring and controlling is necessary to make sure the programs are running the way they should be. Technology and innovations are two major key players in the success of an organization. Being the leading producer of chocolate and non-chocolate products much planning is involved when deciding upon new technology and innovations. Hershey’s has remained untouched are the leader in chocolate technology and has been nonstop from the beginning.
Hershey’s has several machines that are registered trademark and designed specifically to make Hershey’s products. Bateman and Snell (2009) explain that technological advances create new products and advanced production technique0 (p. 55). For example, Hershey’s inspiration to add the “plume” on the Hershey’s kiss was derived from machine wrapping technology and was trademarked in 1921 (The Hershey company, 2010). Hershey’s sweet innovations have deemed very successful for Hershey’s. Hershey’s continues to offer the consumer exactly what they are craving.
In 2010 Hershey plans to release eight new products into the market that are new and unique to the consumer. Many of Hershey’s older products will be will reintroduced in many different forms such as Almond Joy and York Peppermint Patties pieces, Hershey’s and Reese’s Peanut Butter Drops, and Kit Kat Dark chocolate (The Hershey company, 2010). These products are expected to have a very positive reaction from consumer. A great deal of planning and organizing is involved in the idea of creating and launching new products.
Hershey has many competitors and must make plans to stay ahead of the market with planning and leading a successful plan while offering the custom top notch products; “through unceasing technological modernization, strategically astute acquisitions and continued new product developments”(The Hershey company). Globalization eliminates the boundaries between the countries and provides new opportunities for business. Globalization pressures societies to become more alike, converging business approaches, political, and economic systems.
Friedman stated that “globalization is a forceful ongoing process of merging of the world’s markets through the application of new technology” (1999, p 251). “Bringing sweet moments of Hershey happiness to the world every day,” is The Hershey Company’s mission statement (The Hershey Company, 2010). The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionary, with operations in Canada, Mexico, Brazil, Korea, and Japan. Entering a foreign market requires a great deal of planning.
It is by no means an easy task and companies must consider the risks involved. Political risks are by far the most crucial factor that needs to be addressed. Once political risks are evaluated, market research can take place. Global market research includes current market potential, future market growth estimates, political environment, business environment, trade bloc environment, competitive environment, and entry barriers. Political risks are by far the most crucial factor that needs to be planned for.
Once a foreign market has been chosen, organization can begin. What departments or divisions will be put into place? Who will staff the departments, and what resources will be needed? All Hershey international regions are headed by professionals who are natives of those regions. This was done because of familiarity with the local customs and region. The Hershey Company can control the manufacturing process and control costs by continually revamping the supply chain process to make them more competitive in a world of high access and quick demand.
Probably the greatest way the company can build its brand is to provide great customer service and inventory to its network of wholesale distributors, chain grocery stores, mass merchandisers, chain drugstores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores, and natural food stores (The Hershey Company, 2010). By staying true to their values, “One Hershey,” the management team remains open to possibilities by embracing diversity and seeking new approaches and striving for continual growth, while growing together and making a difference by leading with integrity.
Hershey’s epitomizes an all-inclusive organization as indicated in their vision statement “Great People Building Great Brands” (The Hershey Company, 2010). Hershey’s actively supports the following diversity councils and affinity groups: Asian Affinity Group, African American Affinity Group, Hispanic Affinity Group, Network of Young Professionals, PRISM (resource for gay, lesbian, bisexual, and transgender employees), The Woman’s Council and The Sales Diversity Council (CPGjoblist Newsletter, 2009 ).
Leadership is the key to ensuring these diversity policies create a positive workplace environment. Management control is used to forecast company demographics and program success or shortfalls. Diversity programs cost capital to operate and must produce a benefit to the company and the stockholders to be viable. Ethics at Hershey’s Company affect the four functions of management and employees from the CEO to the first line employees. The Planning function of management provides long range goals and visions for the future success of the company.
Companies must also provide a code of ethics consistent with the goals and visions of the company. Hershey’s has developed a 22 point Code of Ethical Business Conduct, setting a clear expectation of the standards required followed during job related activity (The Hershey Company, 2010). According to Hershey’s Company, this code contains five main parts: “the commitment to fellow employees, the commitment to consumers, the commitment to the marketplace, the commitment to the stockholders, and the commitment to the global community. The organizational function of management at Hershey’s maintains ethical standards in the allocation of company resources. They ensure compliance when dealing with human, financial, physical, and informational resources. Hershey’s leadership management function is ethically bound to produce products consumers can trust. Leadership at Hershey’s is paramount in the commitment to employee mutual respect and promoting diversity within the workplace. The controlling function of management ethically safeguards company assets by analyzing company progress and performance.
One of the most valuable skills a manager can learn is how to properly delegate. Most of the time, a manager is in charge of more than one aspect of his company. To keep up with his responsibilities, he must delegate tasks to others. Delegation occurs when a manager assigns tasks to employees at a lower level, and gives them the authority and responsibility to complete those tasks (Bateman & Snell, 2009). By delegating, a manager can perform the four functions of management more effectively and efficiently.
For example, a top manager for The Hershey Company may want to launch a new product. He can assign a team of subordinates to come up with ideas for this new product and a strategic plan. After approving this plan, he may assign portions of the plan to middle managers who in turn would delegate tasks to lower end managers. Each manager delegates to others below him, breaking down the plan a little at a time. Each manager is responsible for leading and motivating his subordinates.
Because the top manager has delegated these tasks to others, it makes him more available to monitor and control the plan. Delegating properly makes company goals easier to reach because the responsibility is spread throughout the company. By focusing on planning, organizing, leading, and controlling, The Hershey Company continues to be a world leader in the production of chocolate and sugar confectionary. Change is inevitable and by embracing new technology innovations, the company is in osition to be an ongoing business concern now and for years to come. References Bateman, T. S. , & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive World (8th ed). New York, NY: McGraw-Hill/Irwin CPG Joblist. (2009). CPGJoblist. Retrieved from http://www. cpgjoblist. com Friedman, Thomas L. (1999). The Lexus and the Olive Tree: Understanding Globalization. New York, NY: Farrar Strauss Giroux. The Hershey Company. (2010). Hershy’s. Retrieved from http://www. thehersheycompany. com.