MEMORANDUM

Date:
To:
From: 
Re: 
9/26/99
Dr. David Chappell
Brian Calvert
BA 570 Internet Research Project

Hershey Foods

1. Hershey Homepage- http://www.hersheys.com/index.shtml-Masthead
There’s no sweeter place on Earth than HERSHEY’s   Chocolate World, the official visitors center of Hershey Foods Corporation. Open year-round and absolutely  FREE, here you’ll explore the art of chocolate making on a simulated factory tour ride that concludes with a delicious sample.
2.  Hoovers Company Capsule- http://www.hoovers.com/co/capsule/2/0,2163,10722,00.html - provides basic information concerning the company and its major subsidiaries.  Hershey Foods has Kisses to spare. The market leader in the US candy business (ahead of Mars), the company makes such well-known chocolate and candy brands as Hershey's Kisses, Reese's Peanut Butter Cups, Twizzlers licorice, Kit Kat, Jolly Rancher, Almond Joy,  and Super Bubble gum. 
Key People include Chairman and CEO, Kenneth L. Wolfe, VC, President, and CCO,                              Joseph P. Viviano,  SVP, CFO, and Treasurer William F. Christ, SVP Confectionery and Grocery,       Michael F. Pasquale, and SVP Operations Raymond Brace

3.go to msn.comMoneyCentral Home
MSN Money central - http://moneycentral.msn.com - Hershey, Tootsie and Wrigley seek to satisfy the market's sweet tooth by building on an expanding confectionery sector with new products and international growth. 
             Hershey is the No. 1 chocolate maker in the United States, generating 1998 sales of $4.4 billion. It owns 34.8% of the U.S. total confectionery market. From 1995 to 1997, the stock averaged a 39.6% return. Then the pace of growth soured, and in 1998 the stock advanced barely 2%. Inventory problems, a change in the mix from the more-profitable standard bar to bagged candy and a failed "Godzilla" movie promotion produced disappointing earnings all year.

4. Ten Things You Didn't Know About Hershey, Mars and Chocolate - http://www.joelglennbrenner.com/trivia.html - Reese's Peanut Butter Cups are Hershey's biggest seller, but in the 1950s, the company tried a chocolate marshmallow cup that showed real promise. Unfortunately, the product had to be discontinued -- the marshmallow filling had a tendency to explode when shipped over the
high altitude of the Rocky Mountains. 

5. News In Review - http://www.informationweek.com/703/03iusrv.htm

The Service Imperative 
 Companies are devising new IT strategies to bolster service and keep their customers coming back. The customer comes first." Marketing slogan? Or a serious business goal backed with resources and commitment from upper management? For a growing number of companies--including Hershey Foods, Mobil, and Staples--it's the latter. 
 
 

6.  - http://eocenter.marketguide.com/mgi/snap/4293N.html
Hershey Foods manufactures, distributes, and sells a  broad line of chocolate and non-chocolate confectionery,  pasta and grocery products. For the 6 months ended 7/4/99,  net sales fell 9% to $1.8B. Net income totalled $274.7M, up  from $123.4M.Revenues suffered from the divestiture of  the Corporations pasta business and decreased core         confectionery product sales. Earnings benefitted from a  $243.8M gain on the sale of business.

7.
Hershey Foods Corporation is engaged in the worldwide manufacture, distribution and sale of
  consumer food products. These products include both chocolate and non-chocolate
  confectionery, pasta and grocery items. Its principal product, chocolate which is sold under more
  than 50 brand names includes bar goods, bagged items and boxed items. Pasta products are sold
  in a wide variety of shapes, sizes and packages. Finally, its grocery division includes baking
  ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages.

8.Industry Week MagazineIndustry Week http://www.industryweek.com/iwinprint/100bestmanaged/1999/database/IW99Company.asp?Input=415

                                     Hershey Foods Corp.

                   Business description: foods, confectionery products 
                        Leader of the U.S. candy market. 
                        Its products are in more than 90 countries. 
                        Revenue in 1998 was $4.4 billion. 
                        Sold its pasta business (comprised of eight brands including 
                        Ronzoni, Skinner, and San Giorgio) for $450 million to focus on confections.
                        Nearly half of international sales are generated by four key brands: Hershey's Kisses,
                        Hershey's Nuggets,Hershey's Cookies 'n' Creme, and Hershey's Syrup 
                        Introduced in 1998, ReeseSticks achieved record introductory
                        sales and surpassed production capacity. Hershey plans measures
                        this year to increase capacity. 

In the third year of IndustryWeek's 100 Best-Managed Companies awards you would have expected the judging process to become a little easier. It didn't. As always, our biggest challenge was not finding 100 companies that met our criteria, but rather limiting the list to that number. After winnowing the list of qualifiers with our financial formula, weighing the opinions of industry panelists, and considering written entries and our own independent research, each finalist had to be examined
individually, measured against industry pressures and geographical influences, and debated among the judges. Not only have all of the winners demonstrated superior, consistent financial performance, but also they exhibit a strong focus on the future made manifest by systematic investments in market development, employee training and welfare, and society. 

THREE-TIME BEST-MANAGED COMPANIES

 COMPANY         HEADQUARTERS    REVENUE $US     CEO                    BUSINESS               1998 IW 1000
                                                                 (MILLIONS)                                     DESCRIPTION          RANK

 Hershey Foods       Hershey PA                4,302.20           Kenneth L. Wolfe     Foods, confectionery    415
                                                                                                                            products

9. http://www.pathfinder.com/fortune/fortune500/500list2_301.htmlFortune500 Navigation Bannergraph

Revenues    Profits             Assets                  Stockholders'
                                                                     Equity
$ millions     $ millions        $ millions              $ millions
 4,435.6          340.9          3,404.1               1,042.3

 % change   % change
  from           from
 1997  3.1    1997   1.4

10.   IBM Global Services http://www.ibm.com/services/showcase/success/fullhershey.html

 Hershey Foods Integrates its Information System with IBM Global Services' Help

          Hershey Foods needed a way to integrate the information systems in its functionally-organized $4.3 billion chocolate, confectionery  and pasta company with 28 plants in the U.S., Canada and Mexico. Its goal was to convert the company to an enterprise-wide  information system to deliver real-time, reliable information across all functions. With IBM Global Services as a collaborating  partner, Hershey set up a team of managers and professionals to install SAP on a 30-month timetable. After a test launch of its new Enterprise Research Planning (ERP) model in Canada, Hershey was ready for a company-wide launch of SAP in 1999. Hershey  expects marked savings in manufacturing, production planning and inventory, improved logistics in sales and marketing, better transportation management, and enhanced responsiveness to customers. Hershey Foods, the $4.3 billion chocolate, confectionery and pasta company, operates a complicated enterprise rich in tradition, which serves a variety of trade categories -- from corner grocery stores to mass merchandisers. To promote more efficient operations during its seven selling seasons, Hershey decided to integrate its dispersed, function-bound information systems, including 3,000 Stock Keeping Units (SKUs) manufactured in 28 plants in the U.S., Canada,and Mexico. 

Note: One of the reasons that hershey has reduced their profit projection for the current quarter and the year is that there are problems with the new computer order system.

11. Lycos Home > Top 5% > Business > Corporate Home Pages > Food Industries > http://point-spry.lycos.com/reviews/FoodIndustries_13352.html

If the Net had smell-o-vision, Pennsylvania candy-maker Hersheys would be first in line to supply surfers 
with a similarly aromatic experience. The next best thing is the Hershey Foods Corp. site, which features a link to the homepage for Chocolate Town, USA (aka Hershey, Pa.), plus richly developed sections on Hersheys various divisions (including Chocolate North America,  Hershey Pasta Group and Hershey International), plus a company history and a virtual chocolate factory tour. An online cookbook even offers chocolate and pasta recipes (well be trying those Blarney Stone-Kissed Cookies for St. Patricks Day). If youre a shopaholic chocaholic, head straight to the Gift Catalog to stock up on stuff like the Big Bytes Chocolate Greeting (a 2 lb chocolate computer inscribed with your message). This densely packed corporate site sweetly balances consumer information and sales with corporate materials. 

12.The Industry Standard http://thestandard.com/companies/company_display/0%2C1591%2C10722%2C00.html
Hershey Foods has Kisses to spare. The market leader in the US candy business (ahead of Mars), the company makes such well-known chocolate and candy brands as Hershey's Kisses, Reese's Peanut Butter Cups, Twizzlers licorice, Kit Kat,  Jolly Rancher, Almond Joy, and Super Bubble gum. Hershey also makes grocery goods such as baking pieces, ice-cream toppings, chocolate syrup, cocoa mix, and peanut butter; it has sold its pasta operations. Its products are sold by more than two million retailers in North America and exported to over 90 countries. The Hershey Trust -- which benefits the Milton Hershey School for disadvantaged children -- controls 76% of the company's voting power.

13.  http://www.classifieds2000.com/cgi-cls/display.exe?partner=xc-xca&path=Employment~VaultReports~Companies~Hershey_Foods

The Scoop

As the manufacturer of five of the top 10 chocolate brands in the U.S., Hershey's holds the drill to America’s cavities. The company’s most recognizable candy products include its namesake chocolate bars, Reese’s peanut butter cups, Kit Kat bars, York Peppermint Patties, Kisses, and Twizzlers. With Sweet Escapes, a (relatively) low fat and low calorie line of treats, Hershey has attempted to regain customers lost in the fat-phobic 90s. Unfortunately, not every pill for Hershey is sugar-coated. International business, particularly in the Far East and Latin America, remains bittersweet.

14. http://news.excite.com/news/pr/990913/pa-hershey-outlook

Hershey Foods Results Expected to Miss Expectations
 Updated 9:49 AM ET September 13, 1999                                                                                                   
                                                                                                      
                                                             
  HERSHEY, Pa., Sept. 13 /PRNewswire/ -- Hershey Foods Corporation (NYSE:HSY)
  announced today that it expects to miss earnings per share expectations for the third quarter and
  fiscal year 1999, primarily as a result of problems encountered in the July startup of new business
  systems, in the areas of customer service, warehousing and order fulfillment. Earnings per share
  for the year could fall 8% to 10% below our previous expectations of $2.40 per share, with the
  bulk of the shortfall occurring in the third quarter.

  Kenneth L. Wolfe, Chairman and Chief Executive Officer said, "We are going through a very challenging period in providing the
  order fulfillment and customer service levels which customers have come to expect from Hershey. While order patterns have
  remained strong, we have been unable to fill them completely, in a timely fashion. We have put in place an action plan to resolve
  our order backlog and get us back on schedule. With the present demand for Back-To-School/Halloween and the upcoming
  Christmas season, however, we believe it will be mid- to late October before we are fully back on schedule. Our customers are
  being notified of this plan and, we believe with their cooperation, we can meet this challenge." 

15. Vault.com http://www.jobvault.com/vstore/snapshots/SnapShotHome.cfm?Product_ID=830
                   Sweet surrender 

                    Luckily, Hershey provides dental coverage to its employees, who say that they are treated as “sweetly as the chocolate.” Longtime employees praise the “generous” benefit and retirement packages as well as the “social and high-spirited” atmosphere. It's good that they get along, particularly at the corporate office, because “Hershey (PA) is a very small town, and there is not much to do.” But “there is a company fitness track, gym pool, weightlifting, exercise machines, and classes available to both employees and their spouses.” Hershey wants employees with “technical knowledge and expertise” who will thrive in its "family atmosphere." 
 

COMPETITION

Mars Inc.http://www.mars.com/

Welcome to the world of Mars, Incorporated!

                                                Mars is a diversified multi-national company creating quality products
                                                in five primary product groups including pet care, snack foods, main
                                                meal, electronics, and drinks. Today Mars products are enjoyed in
                                                over one hundred countries throughout five continents. Our home page
                                                is a place where you can link to the wide variety of information
                                                entertainment and services we provide on the Internet.
 

Welcome to the web site of The World Food Company 
When you think of Nestlé, you probably think of chocolate, coffee or even milk products. But there is a lot more to Nestlé than candy bars and instant beverages. Most people don't know that we are The World's Largest Food Company – the only company that is truly dedicated to providing a complete range of food products to meet the needs and tastes of people from around the world, each hour of their day, throughout their entire lives.