Erp Implementation at Hersheys: Case

Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf

After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that ‘Organization has become a textbook silo organization’ because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential

The proposed sale of Hershey Foods Corporation (HFC) during the summer of 2002 captured headlines and imaginations. After all, Hershey was an American icon, and when the company’s largest shareholder, the Hershey Trust Company (HSY), asked HFC management to explore a sale, the story drew national and international attention. The company’s unusual governance structure put the Hershey Trust’s board in the difficult position of making both an economic and a governance decision. On the one hand, the board faced a challenging economic decision that centered on determining whether the solicited bids provided a fair premium for HFC

The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company

Ten years ago the Hershey Trust Company, who was a major shareholder in the Hershey Corporation, was advised that in order to ensure

M&M’s biggest competitor is Hershey’s brand like M&M candies. The competition is fierce among the chocolate industry. Hershey and Mars are rivals and want the opportunity to gain more of the market share. In 1954, Hershey-ettes were introduced to compete against the similar M&M’s. However, they were not successful and are generally only available for consumers around the Holiday season. By the millennium, Hershey extended the popular Hershey Kisses brand in creating the Kissables. Hershey intended for direct competition to M&M small candy coated round tablet of chocolate in multitude of colors. The candy factories started in standard size packs and by the 70’s moved into standard size candy boxes. In the current year and season, you will find M&M’s in candy canes to small snack sizes and inside ornamental objects. The chocolate world becomes difficult to present as it becomes difficult to come up with new ideas in the candy business. As more companies release products similar to the M&M’s, it will become increasingly difficult for Mars to continue to command the level of market share in the chocolate candy industry and the product has a potential to get lost in the supermarket aisle.

Hershey has bought and produced tons of chocolate for over 50 years that has had the blood, sweat and tears of the not only the children on the Ivory Coast, but the adults as well. The way that Hershey has been able to sell to their consumers with very low prices on all their products is because they buy from the cocoa farms that have child slaves. Many of which were taken from their homes, sold or needed to provide for their families. They would come work for cocoa farmers and get paid little to nothing. Children who work on the Ivory Coast usually are between ages 12 and 16,

Reese’s Peanut Butter Cup has increased Hershey’s shares almost seven percent, and their sales rose to $1.76 billion in October 2016, and the sales continue to rise now with the invention of Reese’s Peanut Butter Pieces (time.com). Hershey has quite a few products that they no longer sell, but their biggest flops are the Hershey Swoops and the Hershey Bites. The Hershey swoops were basically a chocolate slice, which resembled the shape and size of a Pringle. Hershey Swoops were on the shelves for three years, but Hershey pulled them off because consumers did not see the point in having a chocolate piece in the shape of a chip, and it was also misleading to buyers because they thought they were buying a chocolate covered chip (wordpress.com). Hershey’s other product that failed was the Hershey Bites.

Hershey chocolate is known as one of the world’s most popular chocolate brands. For 118 years, the Hershey brand remains a favorite chocolate treat in over 90 different countries. Beginning only manufacturing milk chocolate, the company today manufacturers over 100 different varieties of candy. Many people are familiar with the traditional Hershey milk chocolate bar, Reese’s peanut butter cups, and bite sized Hershey kisses. The process behind producing these famed treats is a fascinating process. By evaluating the company’s manufacturing process and business dynamics, consumers can gain a better perspective of the science behind the candy the enjoy most.

ERP Implementation in Hershey Foods Corporation can be a difficult, time-consuming, and expensive project for the company. The technology is tightly integrated and requires a commitment from all division. It can take years to complete and cost risks. Moreover, there is no guarantee of the outcome. If not properly planned for, the investment may drive Hershey out of business.

The Hershey Company engages in the manufacture, marketing, distribution, and sale of various types of chocolate and confectionery, refreshment and snack products, and food and beverage enhancers in the United States and internationally. The Hershey Company sells its products through sales representatives and food brokers, primarily to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores, and natural food stores. The company was founded in 1894 and is based in Hershey, Pennsylvania. The Hershey Company went public on the New York Stock Exchange (NYSE) in 1922 (http://finance.yahoo.com/q/pr?s=HSY).

This case was written by P. Indu, under the direction of Vivek Gupta, IBS Center for Management Research. It was compiled

Hershey’s Chocolate is one of the most recognizable brands in the U.S. Hershey built this recognition by building brand loyalty. They began to build this loyalty in the early 1990’s by targeting their marketing to adults. The reasons for this are many, but two are that adults eat about 55% of all candy consumed and that mothers shape their children’s early taste in candy. Hershey revised their marketing strategy in several ways. Hershey also has an amusement park in the hometown of the Company, Hershey, Pennsylvania.

This case was written by Debapratim Purkayastha, IBS Center for Management Research. It was compiled from published

ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.