The Hershey Company : Final Form 10 K Paper

Whinston and Segal defines ownership as a set of rights and obligations concerning assets (Thomsen and Conyon, 2012, p. 122). The ownership structure, naturally, highly affects the actions of the company. Hershey is a publicly listed company on the New York Stock Exchange. There are two

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

thehersheycompany.com went on to say that the Hershey Chocolate is focused on growing their company globally and sharing Hershey 's chocolate around the world.

Hershey Foods reports a net income of $590,879 and Tootsie Roll Industries report a net income of $64,174. Overall, both company’s report a net gain. However, Hershey Foods net income is larger than that of Tootsie Roll Industries by $526,705.

Hershey started with 500 acres of land to build the company; within one year of being open he expanded to 12,000 acres (Career). He made the company bigger and better as time went on. When Hershey first opened, milk chocolate was the only candy produced. Around 400,000 quarts of milk were used each day to manufacture chocolate, around half a million pounds of chocolate was produced a day. While planning the rest of the Hershey factory, Milton wanted his employees to have a safe, home-like environment to live in. Workers would need comfortable homes, medical care, recreational facilities, and school for their children. Not only would Hershey help them out financially, he would help them with personal issues too. The production took around a year to do. By then Hershey Company was ready to open and produce candy

The Hershey Company and Tootsie Roll Industries, Inc. have weathered the ”Great Depression” with a history of more than one hundred years in the confectionary candy making industry. Their vision and longevity have pushed them into the twenty first century to meet the needs of the community, consumer, affordability, environment and healthy control portions. Both companies have made available, reduced sugar, sugar free, nut free, peanut free and gluten free products that is reflected in their candies, gum and mints. The two companies are worth investing in, but may be better than the other.

The founder of Hershey Chocolate, Milton Hershey, had a long journey to creating some of the most famous candy today. From a young age he lived in poverty and his parents constantly fought due to differences, which would always have an impact on Milton’s life. He started out in the business struggling, first with his caramel business going under and the unhelpful advice of his father that only led to Milton making more mistakes. Once Milton made it big he went on to do amazing things and dedicated a big part of his life to helping other people and focusing on the well-being of his employees. Milton Hershey was indeed one of the most famous and successful people in the candy community, but it was only through many hardships and stress that got him there.

The industry that I chose is the chocolate industry. Growing up in Pennsylvania the Hershey Company is well know throughout the state and is a factory I have visited on multiple occasions. While the chocolate tycoon has made some negative headlines over the past few years with outsourcing and layoffs, they have done a good share of philanthropy work for the state and the Dauphin County area.

For over one hundred years, there has been only one company that has been on top of the candy industry in North America; Hershey. With over 14,000 employees, serving 70 countries worldwide and net sales of $6.6 billon, Hershey has come out on top. The Hershey company began in 1894 by Milton Hershey. The company has over 8 factories, but their main headquarters resides in Pennsylvania. The beloved Hershey milk chocolate bar has been a favorite by many, but would it still be if more people knew how it came to be that? One of chocolates main ingredients is cocoa. Cocoa, or cocoa beans come from tropical areas around the world, but is mostly found on the Ivory Coast in West Africa. Hershey, along with Mars and Nestle are the three major companies that buy their cocoa from West Africa, but with further investigation, it has been known that over 4,400 children work on those cocoa farms that they buy from.

To facilitate the valuation aspect of the analysis, free-cash-flow forecasts are provided in case Exhibit 10 for Hershey as a stand-alone entity. Most students should find it easy to calculate a value for Hershey using the discounted-cash-flow (DCF) method and industry-comparable multiples, which also are provided. As with any valuation case, students must make judgments about the appropriate capital structure, the weighted average cost of capital (WACC), sales growth, and the terminal growth rate. Once students have explored the value drivers for Hershey though sensitivity analysis, they may then evaluate the bids from both Nestlé S.A.–Cadbury Schweppes PLC (NCS) and the Wm. Wrigley Jr. Company. They will want to examine whether the bids are fair from the perspective of HFC shareholders and whether the synergies assumed by the bidders in their offer prices are reasonable.

The Hershey Co use multi steps income statements in order to get the detailed information regarding on gross profit and operating income of Hershey Co. In the year of 2014 compared to 2013, total operating profit increased by 3.59%, net income increased up to $820.47 (3.12%), and diluted EPS increased 4.4%. This increasing points in both EPS and net income were given the affects by higher sales, offset by unfavourable sales mix and higher commodity costs. The volume of growth increased was driven by incremental sales of Hershey’s new innovation products which sold in North America segment markets and Other segments which coupled almost 1% growth from SGM acquisition. For the net sales segment, which not stated above, compared

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

This paper reviews the Cash Flow Statements of Yum Brands, Inc., Panera Bread, and Starbucks documented by case study 10-10 in our textbook for the purpose of analyzing financial health based on cash flow data. (Gibson, 2013).

The decision to sell the shared faced strong opposition from Hershey employees, local businesses, and politicians. The community did not want foreign company to take over Hershey Company due to the legacy of Hershey involvement in the community will be compromised and many jobs might be lost.

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.