Strategic Approach of Bussiness Evaluation

STRATEGIC APPROACH OF BUSSINESS EVALUATION

ISSUES

1) Environmental analysis (PEST)

Legal issues

* Price floor legislation for chocolate and other ingredients.

* Nutrition information is also requirement that all food companies are subject to.

* Has heome subject of last suit in Canada for its pricing practices and reached agreement to settle the suit with $5.3 million liability

* Child labor law in Africa have significant impact on chocolate production. An investor has filed a suit against Hershey company because the company is alleged to have received cacao from suppliers who used child labor ( milford mecarty and church 2012)

* Another issues that the company is facing is the increasing national focus on obesity.

* Challenged to increase sales as well as maintain its reputation as asocially responsible corporance citizen

2) Accounting Analysis

- Identification of accounting principles and methods use to prepare financial statements and the ability to adjust these in order to increase relevance and liability.

- The company completed an impairment evaluation of good will and other intangible assets associated with Hershey Ltd. Based on this evaluation, the firm recorded non-cash goodwill impairment charge of $44.7 million

3) Supply chain transformation program – the global supply chain transformation program.

- Manufacturing facilities in Naugaluck, smith falls, unfario have been closed and are offered for sale.

- The actual proceeds from the sales of these properties could differ from expected proceeds which could cause additional charge or credit in 2012

4) Financial Analysis

Financial analysis analyzes and evaluates financial risk, ratios and probability

5) Prospective Analysis

-This allows the company to improve its business strategy and maintain its sustainability and for investors to make proper decision about their investment

- Discounted dividends, abnormal earnings and discounted cash flow methods are used to perform...