A Small Research on Hersheys Global Strategy

INTERNATIONAL BUSINESS MANAGEMENT

MODULE LEADER – Michael Zhang

NTU ID – N0310990

Introduction

During the last half century, especially in the last twenty years, a new and diverse identifiable mode of international economic activity has emerged as a result of the internationalization of the production and manufacturing activities of companies. This was a starting point where the term ‘multinational companies’ came into usage defined as an enterprise which owns or controls producing facilities in more than one country (Dunning J.H 1993). Thus such companies which have been trying to enter into different markets worldwide have been challenged with the task of globalization of their firms. It refers to the shift towards a more integrated and interdependent world economy (Hill 2008). The task can be said challenging because of the national differences in the tastes, lifestyles and preferences of various goods and services and the different aspects a company has to take into consideration before one can think of entering into a different market world.

Globalization is a way of spreading a company’s production or distribution activities worldwide (Yip G.S 2002). But doing just that is not enough in this ever changing world for tastes and preferences of products and services. Companies also need to globalize their activities in a different sense also like designing, producing and marketing their products and services by tailoring it to suit the needs of the local market. This strategy can be called ‘Multilocal strategy’.

Hershey’s follows into the global category as it offers standardized products worldwide. Hershey’s head quarter is in Pennsylvania, their production activities are carried on in Pennsylvania, Mexico and Illinois. Their products are available at all major super markets and through its franchisees worldwide and the company also have exclusive distribution...