Erp Implementation at Hersheys: Case

7289 WordsMar 10, 201330 Pages
ITSY/0059 CO PY IBS Center for Management Research ERP Implementation Failure at Hershey Foods Corporation D O N O T This case was written by P. Indu, under the direction of Vivek Gupta, IBS Center for Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2008, IBS Center for Management Research. All rights reserved. To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: ITSY/059 ERP…show more content…
Using the machinery, he began making chocolate coatings for caramels. HCC was incorporated after this business success in that year. By 1895, HCC was manufacturing more than 114 different varieties of chocolates. But milk chocolate was still made only by a few Swiss companies. Milton aimed to learn how to mass produce milk chocolates, and spent several years to try to discover the right combination and method to produce milk chocolates. By 1899, he arrived at the right combination of cocoa, sugar and milk through trial and error and became the first American company to make milk chocolate. PY In order to concentrate on the chocolate business, the caramel company was sold in 1900 for US$ 1 million. A new facility to produce chocolates was started in Derry Township, in Pennsylvania. The First World War had a negative impact on the company, as the sugar it imported from Europe became scarce. This led HCC to explore the possibility of using Cuba as a viable alternative source of sugar. It went on to acquire several sugar plantations and also constructed sugar refineries in Cuba. CO In 1927, HCC was incorporated as Hershey Chocolate Corporation. At the same time, another company Hershey Estates was incorporated. This company looked into Milton‟s other activities like community projects. Another company to oversee the Cuban operations was also founded at the same time. In
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