preview

The Hershey Company 's Company

Better Essays
THE HERSHEY’S COMPANY
Newton Prajapati
University of Bridgeport Introduction
Company Background:
The Hershey Company is one of the largest chocolate manufacturers in North America. The company’s name has been a synonym for chocolate in North America. Hershey’s was founded Milton S. Hershey in 1894 in Derry Township, Pennsylvania. It has secured the position of 22nd in the list of top 100 food processing company of USA (Foodprocessing, n.d.). It used to be named as Hershey Food Corporation until April, 2005. The journey of this company started with the production of caramel products and it was a big hit at the end of nineteenth century. Later, Milton Hershey decided to produce chocolate products and kept on tasting the success
…show more content…
Findings
Types of Cost Drivers for The Hershey’s Company:
The different types of cost drivers that are associated with The Hershey’s company can be listed as below:
A. Structural Cost Drivers:
It is more related to the selection of the location of plant, technology to be used, and office layouts. The company must have a lot of research on these things because these decisions are very crucial for the cost management and effectiveness of the operation that the company conducts. So the management has to be very careful about these long term decisions in order to save their large amount of dollar to their company.
B. Organizational Cost Drivers:
Generally these costs occur after the structural costs. They are related to the reorganizing of office equipment, working with a limited number of suppliers, providing the information of cost to its employees and giving them the authority to make decisions. These decisions have a moderate level of difficulty to change.
C. Activity Based Cost Drivers:
Generally, every activity that a company does has costs. So all the activities like placing an order for its production, inspection of the raw materials, hiring of employees, training for the new employees, packaging of the products, shipment of the products, advertisements etc.
Identification of different costs:
Different types of costs for The Hershey’s company can be as following:
1. Variable Costs:
These are the cost that varies
Get Access