The Hershey Chocolate Company was created by the Milton Hershey’s Lancaster

Caramel Company in 1893 solely as a subsidiary company. As popularity grew for the

Hershey’s brand in particular Murrie decided that it was time to set the brand out as its own

company. Within 2 years the Hershey Company had created over 100 different chocolate

products that were endorsed and marketed nationwide. From the year 1896 to 1899 Hershey

focused on its number one product within the company and that was milk chocolate. A formula

was created to create milk chocolate quickly and efficiently within the small rural town of Derry

Township, which was known for the heavy number of dairy farms which was the key ingredient

to milk chocolate. Another perk of Derry Township was that it was close to ports in major cities

which helped with the shipping of the product to other states, and later countries.

Now in 2014 The Hershey Company is the largest producer of quality chocolate in North

America and is one of the top international sellers of chocolate.  Currently headquartered

in Hershey, Pa., The Hershey Company has expanded its franchise not only in the chocolate

making business but also in the amusement park industry with the opening of the Hershey’s park,

which has increased the company’s employment number to about 14,000 employees. Being the

number one quality chocolate maker in the US is definitely a good thing for the company, but

with global competition in Europe and other countries Hershey’s is now focusing on increasing

its international presence in other countries.

For the most part when starting the Hershey’s company it was ran solely by Hershey.

Hershey as the single owner made company decisions and put it into place. The company

worked solely as a single owned manufacturing company that focused on large scale

manufacturing needs. The first change in the Hershey’s company occurred in 1945 with the
death of Hershey himself. Even though his energy and love for chocolate became the foundation

of the company, the managerial style also changed with his death. Now the company was based

on a group managerial style. With the use of stakeholders and other investments the transition to

a group managerial style was considered the best for the company because it opened the door to

a diverse flow of ideas to help manage the company, and to grow the brand. The benefits of

managerial change for the Hershey’s brand opened the door to increased international

advertisement of the company, as well as an increase in its subsidiaries. Over the coming years,

there is a prediction that the Hershey’s managerial style will continue to involve to deal with the

increase in technological innovations to help the company on an international level.

The Hershey Company currently utilizes a hierarchy structure, with the CEO leading the

organization down to the board of directors, stakeholders, regional managers, factory managers,

down to employees within the factories. Hershey creates an ever growing and dynamic work

environment that helps mold the standard employee for potential managerial positions. Hershey

is the top of company that likes to hire from within to maintain the foundation of service that is

spread through all areas of the company. By hiring from within the company creates a legacy of

employees and managers that all have one thing in common and that’s the overall success of the

Hershey’s brand.

The senior management’s role in preparing the organization for its most recent change of

increased acquirement of subsidiary brands is definitely an important one. The senior

management is responsible for researching and suggesting different companies and brands that

could potentially fit into the Hershey’s brand. By acquiring smaller subsidiary brands the

company is able to expand without the stress of the creation of new products. An example of

this would be the acquirement of Brookside, which expands into the healthy candy market with
the production of products like dark chocolate covered pomegranate, acai, and goji fruits. The

launch of Brookside under the Hershey’s brand is set to launch in mass production nationwide in

September 2014. The increased acquirement of subsidiaries from a managerial position was a

seamless transition for the Hershey brand. I would say that it was seamless because it was

something that was done on a smaller scale previously with the acquirement of smaller

companies as an easy way to grow the brand. Nowadays it is the key to the expansion of the

Hershey’s brand. No longer are they creating new brands as they did in the earl 1900’s, they are

100% focusing on acquiring companies and making them their own.

The management’s decision on its use of vendors and spokespersons is definitely an

important one for the brand. They make sure that they choose companies that can expand the

Hershey’s empire. Because of this they directly follow and observe the companies and vendors

that they plan to acquire to make sure that they fit the Hershey’s brand. In the area of

spokespersons they use individuals who embody the foundation of the Hershey’s empire.

Nothing is more important to the Hershey’s brand than its foundation. The vendors and

spokespersons of the Hershey’s brand must know and understand the engagement priorities of

the brand which are directly related to safety, issues within the environment, and human rights.

Using these as a part of the foundation of the brand helps to select positive vendors and

spokesperson that truly believe in the growth and greater good of the Hershey’s brand.

As a manager within Hershey’s one innovative idea that could have a positive impact on

both the employees and customers of the company would be the implementation of sales

representatives. All of Hersey’s sales are completed on a mass manufacturing level to

companies who send them to retail stores, convenience stores, grocery stores, etc. With the use

of direct marketing techniques Hershey would be able to gain that one on one connection with
the customer as well as open of employment opportunities for employees who are interested in

being a part of the Hershey’s brand on a different level. This type of sales could be used at

sporting events, concerts, etc to help increase the Hershey’s brand. Customers would love the

fact that the Hershey’s brand is available not only in stores but at other venues as well, and it

would be beneficial for the company because it would increase direct sales of the product.

I predict that the Hershey’s company will continue to adapt to the changing needs of its

customer and marketing needs. Ultimately for a company that has been in business for over 100

years, the skill of innovation is one that is necessary for the survival of the company. I say this

because so much has changed within the company as well as within its external environment

over the past century and Hershey has still managed to maintain its number one spot in America

as well as the top 3 spots world-wide. In the area of customer needs Hershey is known for

supporting the overall wellbeing of the customer by offering a variety of company products that

satisfy the needs of a variety of customer’s needs. An example of this would be the sugar-free

addition to the Hershey’s line to make sure that those with dental or medical issues are able to

enjoy the taste of Hershey’s products without increased health issues. Secondly, with the

increase in gluten-free awareness in the past few years, Hershey has included gluten-free

alternatives for the growing gluten-free population. In a more health conscious society Hershey

has also addressed this community by offering smaller portions of chocolate with decreased

calorie amounts for those who want to enjoy their Hershey treat without guilt

In the area of marketing Hershey has innovated their marketing strategy by becoming a

part of a self-regulation council as well as the Children’s Food and Beverage Advertising

Initiative. By becoming a part of the Advertising Self-Regulatory Council, Hershey has been

able to self-manage the products that they advertise to make sure that they are truthful and
effective. I believe that this is a good look for the company because they are able to show the

public that they are not just about sales but that they are about the community. This shows that

they are willing to self-correct themselves if needed to make sure that they are providing the best

product for the consumer as well as maintaining high standards for themselves as a company.

The joining of the CFBAI is a direct correlation to helping decrease the juvenile obesity

rate within the US. Under the CFBAI Hershey has agreed to not directly market to children in

their advertisements. This once again shows that the Hershey brand is not only interested in

making money but also in the wellbeing of the community as a whole. Considering the fact that

the children’s market is the best market to advertise to when selling things like candy, it’s

definitely a good look for the company to avoid this target market all for the interest in children’s

health.

In conclusion, over the past decade Hershey has continued to grow, innovate, and lead in

extremely aggressive markets. In their search for balance between environmental change and

increased profits Hershey has been able to do both by staying true to their foundational values set

by Hershey himself. One of the key factors of the managerial success of the company is an equal

balance of innovation and a genuine care for their community, employees, and consumers. As a

multi-dollar brand it is easy to overlook the growing needs of the community and to become

stagnant in your ways. Hershey has definitely gone against the grain and proved themselves to

be a company with limit less possibilities. Their acquirement of diverse brands as well as their

public awareness of current issues from their involvement with WWI and WW2 all the way to

the current issues of juvenile obesity Hershey’s has shown that they are a brand that has been

dominating not only the candy market, but the business market as whole. By staying up to date
on customer trends and remaining evolved in the ever changing target market there is no doubt

that Hershey will remain at the top.