ASSIGNMENT NO. 3
ON
HERSHEY, NESTLE, CADBURY & MARS
PREPARED BY: RANA WAQAR AHMED (Reg. ID: 10158)
SUBMITTED TO : SIR MUBASHIR SANDELA
DATED: 10th March, 2013
S. No. | Particulars | Hershey | Cadbury | Nestle | Mars | 1. | Top Tier | | | | | 2. | Middle Tier | | | | | 3. | Bottom Tier | | | | | 4. | Social / Corporate Responsibity | | | | | 5. | Manufacturing | | | | | 6. | Facility other than origin | | | | | 7. | Stock value | | | | | 8. | Forward and backward integration | | | | | 9. | Nutritional brand | | | | | 10. | Organic products | | | | | 11. | Diversification | | | | | 12. | Growth Ratio over last 3 years | | | | |
P.E.S.T. Analysis
Political/Legal Analysis * Chocolate producers unable to distribute products to certain countries. * Major issue is child labour in cocoa farms * Mostly affected areas in Africa where child labour runs rampant. * The Chocolate Manufacturers Association (CMA) and the World Cocoa Foundation (WCF) created the Harkin-Engel Protocol, which is an agreement that focuses on child labour practices on cocoa farms in West Africa (U.S. Labour, 2006). * Result opened new channels to export and distribute cocoa to international countries.
1.1 Economic Analysis * In 2006, due to hurricane impact, the price of refined sugar decreased from $0.38 to $0.31 per pound (Hershey’s 10-K, 2009). * This allowed companies to cut retail costs and redistribute the savings. * A lot of waste material is produced, and companies spend thousands of dollars on disposing it. * However, there is a new opportunity born due to recent developments in bio-fuel. * Since 2007, Lovell discovered a new method of production that can use the by-product of chocolate manufacturing companies.
1.2 Socio-cultural Analysis * Consumers want a larger variety of chocolates
References: “Hershey Co. Form 10-K”, The Hersheys Company, December 31st, 2009. Retrieved January 14th, 2011. Michael et al. “The Hershey Company – Introduction the World of Chocolate”, 2007. Retrieved January 10th, 2011. “U.S. Labour Department Funds Project to Evaluate Effectiveness of Anti-Child-Labour Efforts in the Cocoa Industry.” World’s Technology News. October 4th,2006. Retrieved January 14th, 2011.