Discussion reply- response 1-2 paragraphs with 1-2 references
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An IFE analyzes the internal factors of a company and determines its balance of strengths and weaknesses (David & David, 2017, p. ??). Using Hershey’s financial ratios, Hershey’s internal strengths and weaknesses can be evaluated. Hershey has a poor handle on its international investments, having to sell their assets overseas (Hirsch, 2018). While this is also a strength as it allows the company to focus on its primary market, it also sets the company’s expansion further back. There is a large international market out there for chocolate, but Hershey hasn’t been able to quite find a foothold, letting competitors like Mars and Nestle grab larger shares of the market. On the other hand, Hershey has a very strong position in the U.S. market far exceeding its competition. With the cocoa industry on the rise and its margins and equity only increasing, the company seems to be doing very well for itself and in a comfortable position (Investing, 2020). However, it’s worth noting that while it is enjoying its short-term success, projections for 5 years in the future look grim in some areas. Things like its growth, cash flow, and debt all fall behind the industry standards, making its long-term success questionable (Investing, 2020). Hershey’s IFE ends up being slightly above average. While the company is doing well now, its future is uncertain. It all depends on how the company progresses and addresses its weakness.
Conway, J. (2019, December 18). U.S. market share of chocolate companies, 2018. Retrieved March 22, 2020, from https://www.statista.com/statistics/238794/market-share-of-the-leading-chocolate-companies-in-the-us/
Hirsch, L. (2018, July 26). Hershey sells two international businesses to focus on US snacking. Retrieved March 22, 2020, from https://www.cnbc.com/2018/07/26/hershey-sells-two-international-businesses-to-focus-on-us-snacking.html
Investing. (2020). Hershey (HSY) Financial Ratios. Retrieved March 22, 2020, from https://www.investing.com/equities/hershey-co-ratios
Malawskey, N. (2011, August 18). Foreign students who work at Hershey warehouse say ‘we have our rights’. Retrieved March 22, 2020, from https://www.pennlive.com/midstate/2011/08/foreign_students_who_work_at_w.