The chart only has five columns and the information i need for chart in listed...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The chart only has five columns and the information i need for chart in listed below.
Division
Revenues
Profits
Relative market share position
Industry growth rate
Complete the chart.
Summarize the information you put in each column of the matrix.
Provide recommendations on how the Hershey Company can improve current operations.
If is it possible to have reference would be very helpful to get more information on company. Strategy Hershey has recently embarked on a multiyear joint venture with 3D Systems, makers of 3-D printing technology, to start producing new confectionary products using this technology. 3D Systems currently produces two 3-D printers capable of making chocolate. The firms ChefJet is priced around $5,000 and prints single-colored candy much like a plain Hershey candy bar. The ChefJet Pro, priced at around $10,000, can produce multicolored candies. Both printers are capable of printing complex candy designs at a rate of one inch per hour and sizes up to 8 inches by 10 inches by 14 inches. Some analysts, however, do not believe 3-D printing is an option for confectionaries until 2020 due to slow production and high cost factors. The technology will be affordable enough to produce specialized candies for Valentines Day and other holidays around that time but still not affordable enough for mainstream production. Recently, Hershey purchased Brookside-branded candy, famous for its dark-chocolatecovered candies with fruit-juice centers such as pomegranate and blueberry. Hershey purchased Shanghai Golden Monkey Food in 2014. In that year, Hershey began distribution of acquired confectionery and protein-based bean curd snacks into the China modern trade. For all of 2014, Hersheys chocolate sales in various countries grew, including China (12% vs. 7% prior year), Mexico (2% vs. 7% prior year), and Brazil (1% vs. 5% prior year). With the KRAVE acquisition in 2015, and with the companys vision statement, Hersheys strategy is to broaden its product line more by adding healthful snacks to complement its numerous types of chocolate and nonchocolate candies. Since protein snacks are growing rapidly in popularity globally, the KRAVE acquisition may be the first of many for Hershey in that line of business. The acquisition represents one of the first times Hershey has taken a big step outside confectionery. Hersheys 2014 international net sales increased nearly 15 percent, including a net sales contribution of approximately 7 percent, or $54 million, from Shanghai Golden Monkey Food Joint Stock Co., Ltd. (SGM). Excluding SGM and the unfavorable foreign currency exchange impact, Hersheys international net sales increased approximately 10 percent in 2014. Segments Hersheys primary operations and markets are in the United States. The percentage of total Hershey net sales outside of the U.S. was 17.5 percent for 2014, 16.6 percent for 2013, and 16.2 percent for 2012. The percentage of total consolidated assets outside of the U.S. was 35.4 percent as of December 31, 2014, and 19.4 percent as of December 31, 2013. Although Hershey does not report sales and income by product category, the company keeps internal records by three product segments: Chocolate, Sweets and Refreshments, and Snacks and Adjacencies. The Chocolate category consists of fancier options such as acquired Cadbury, traditional products such as Mr. Goodbar and Hersheys Kisses, and Dagoba organic chocolates. Twizzlers, Jolly Rancher, PayDay, and others are included under the Confectionary Products umbrella. Breath Savors, Bubble Yum, and Icebreakers fall under Sweets and Refreshments, and Hersheys baking chocolates and syrups are included under Snacks and Adjacencies. Hershey also offers a full line of sugar-free products. Many Hershey products are naturally gluten free and kosher in nature. Hersheys sales and income by geographic region are given in Exhibit 2. North America accounted for 85.6, 86.8, and 87.5 percent of the companys sales in 2014, 2013, and 2012, respectively. Note in Exhibit 2 that Hersheys income from outside North America has declined steadily. All sales and income from Hershey stores are included in the International and Other segment. Exhibit 2 Hersheys Net Sales and Income (in millions)
2014
2013
2014
Sales
North America
$6,352.7
$6,200.1
$5,812.7
International and Other
1,069.1
946.0
831.6
Total
7,421.8
7,146.1
6,644.3
Income
North America
1,916.2
1,862.6
1,656.1
International and Other
40.0
44.6
51.4
Total
$1,956.2
$1,907.2
$1,707.5
Exhibit 3 Hersheys Income Statements (in thousands, except per share amounts)
2014
2013
2012
Sales
$7,421,768
$7,146,079
$6,644,252
Costs and expenses
Cost of sales
4,085,602
3,865,231
3,784,370
Selling, marketing, and administrative
1,900,970
1,922,508
1,703,796
Business realignment and impairment
45,621
18,665
44,938
Total costs and expenses
6,032,193
5,806,404
5,533,104
Income before interest and taxes
1,389,575
1,339,675
1,111,148
Interest expense
83,532
88,356
95,569
Income before taxes
1,306,043
1,251,319
1,015,579
Income taxes
459,131
430,849
354,648
Net Income
846,912
820,470
660,931
Net income per share
3.91
3.76
3.01
Dividends paid per share
2.04
1.81
1.56
Exhibit 4 Hersheys Balance Sheets (in thousands)
2014
2013
Assets
Cash and Cash Equivalents
$ 374,854
$ 1,118,508
Short-Term Investments
97,131
Accounts ReceivableTrade (Net)
596,940
477,912
Inventories
801,036
659,541
Deferred Income Taxes
100,515
52,511
Prepaid Expenses and Other
276,571
178,862
Total Current Assets
2,247,047
2,487,334
Net Property, Plant, and Equipment
2,151,901
1,805,345
Goodwill
792,955
576,561
Other Intangibles
294,841
195,244
Other Assets
142,772
293,004
Total Assets
$ 5,629,516
$ 5,357,488
Liabilities and Stockholders Equity
Short-Term Borrowings
$ 635,501
$ 166,875
Accounts Payable
482,017
461,514
Accrued Liabilities
813,513
699,722
Accrued Income Taxes
4,616
79,911
Total Current Liabilities
1,935,647
1,408,022
Long-Term Debt
1,548,963
1,795,142
Other Long-Term Liabilities
526,003
434,068
Deferred Income Taxes
99,373
104,204
Total Liabilities
$ 4,109,986
$ 3,741,436
Stockholders Equity
Preferred stock shares issued: none in 2014 and 2013
Common stock, shares issued: 299,281,967 in 2014 and 299,281,527 in 2013
Class B common stock, shares issued: 60,619,777 in 2014 and 60,620,527 in 2013
Additional paid-in capital
754,186
664,944
Retained earnings
5,860,784
5,454,286
Treasury stock: 138,856,786 in 2014 and 136,007,023 in 2013
(5,161,236)
(4,707,730)
Accumulated other comprehensive loss
(358,573)
(166,567)
Stockholders equity
1,455,062
1,604,834
Noncontrolling interests in subsidiaries
64,468
11,218
Total stockholders equity
1,519,530
1,616,052
Total liabilities and stockholders equity
$ 5,629,516
$ 5,357,488
Exhibit 5 Hershey versus Rival Firms, Market Share (percent)
Product Type
Hershey
Mars
Nestle
Others
USA Chocolate
37
28
5
*30
USA Nonchocolate Candy
21
35
2
42
Global Chocolate and Nonchocolate Candy (non-USA)
5
14
9
**72
Exhibit 6 Hershey versus Rival Firms
Hershey
Nestl
Tootsie Roll
Industry Avg.
# Employees
20,800
333,000
2,000
1,730
$ Revenue
7.5B
105.47B
541M
3.79B
$ Revenue per Employee
360,575
316,000
270,500
219,000
$ Net Income
840M
11.15B
62.6M
3B
$ Market Capitalization
20.7B
242B
2.08B
675M
% Operating Margin
0.19
0.15
0.15
0.05
Earnings per Share
3.76
3.49
1.03
0.11
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!