Hershey Needs Your Assistance In Developing A Clear O 454055

Hershey Needs Your Assistance In Developing A Clear Organizational Cha

Based on the executive titles given above, construct an organizational chart for Hershey following the guidelines from the readings. Review some information about Hershey on the Internet. Decide whether you believe Hershey would benefit most from a divisional-by-product or a divisional-by geographic region design. Diagram your recommended chart. If you don’t have experience in creating an organization chart, Google – Organization Chart Sample. Write a 1 page (300 word minimum) executive summary of your organization analysis and recommendation for Hershey.

Paper For Above instruction

Hershey, a leading player in the confectionery and snack industry, operates a complex organizational structure that requires strategic alignment to sustain its competitive advantage. The current leadership, comprising roles such as CEO, COO, CFO, and various SVPs and VP, suggests a top-down hierarchy focusing on strategic, operational, financial, international, and innovation functions. To optimize Hershey’s organizational efficiency and market responsiveness, a well-designed organizational chart must be constructed, considering the company's product diversity and geographical presence.

Constructing Hershey’s organizational chart begins with positioning the CEO and President at the apex, overseeing the entire organization. Under the CEO, critical divisions include the North American Commercial Group and the International segment, headed by the EVP and COO, SVP and President of North American Commercial Group, and SVP of Global Operations and International operations. Supporting functions such as Strategy and Business Development, Global R&D, and Corporate Communication report directly to the top executive team, facilitating strategic initiatives and innovation drives across the company.

Given the extensive product portfolio, including chocolates like Hershey’s Kisses, Reese’s, and Twizzlers, as well as grocery items like baking chocolate and snack nuts, along with a broad geographic footprint across North America and exports worldwide, Hershey faces structural considerations. A division based on product types would group similar items, fostering product expertise and innovation; meanwhile, dividing by geographic regions would allow the company to respond swiftly to regional market trends and consumer preferences.

After evaluating Hershey’s strategic position and market complexity, a hybrid approach combining divisional by product and geographic segmentation can offer the greatest benefits. For example, the organization could establish regional divisions (North America, International) with within-region product teams focusing on chocolates, snacks, and grocery goods. This dual structure enables tailored marketing approaches, enhances innovation specific to regional tastes, and streamlines operations. Such a configuration aligns with Hershey’s strategic goal of maintaining its market dominance while adapting swiftly to local consumer demands.

In conclusion, a hybrid organizational structure—combining geographic and product-based divisions—would best serve Hershey’s needs. It provides strategic flexibility, facilitates innovation, and improves regional responsiveness. For the diagram, the structure would depict the top executive team at the apex, branching into regional divisions, each further subdivided into product categories. This layered approach ensures clear lines of authority and accountability, supporting Hershey’s ongoing growth and competitive positioning in the global confectionery and snack markets.

References

  • David, F. R. (2013). Strategic Management: A Competitive Advantage Approach. Pearson Education Inc.
  • Hershey Company. (2023). About Hershey. Retrieved from https://www.thehersheycompany.com
  • Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy. Pearson Education.
  • Mintzberg, H. (1979). The Structuring of Organizations. Prentice-Hall.
  • Daft, R. L. (2015). Organization Theory and Design. Cengage Learning.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Gulati, R. (2007). Management Strategy: Achieving Sustainable Competitive Advantage. Pearson.
  • Smith, J. (2021). Organizational Structures in Multinational Corporations. Journal of Business Strategy, 42(3), 45-52.
  • Hershey Financial Report. (2022). Retrieved from https://investor.hersheys.com
  • Strickland, A. J., & Gamble, J. E. (2018). Crafting & Executing Strategy. McGraw-Hill Education.

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