How Hersheys company emerged to a multibillion-dollar organization Research Paper

How Hersheys company emerged to a multibillion-dollar organization - Research Paper Example This research will begin with the statement that Hershey Company that was known as the Hershey Foods Corporation until April 2005 and is commonly known as Hershey’s now is the largest manufacturer of chocolate operating from North America.   It is headquartered in Hershey, Pennsylvania. It was founded by Mr. Milton S. Hershey in the year 1894 and was named the Hershey Chocolate Company that was also a subsidiary unit of the Lancaster Caramel Company. It is especially known for its milk bar chocolates, chocolate bars, candies and baking products. Apart from its chocolate products, the company is also well known for its philanthropic activities. The internal analysis of a company provides information about its core competencies, as well as functional analysis; in order to establish the firm’s core competencies, Porter’s value chain model can be used.   Core Competencies and Unique Resources - The core competencies should possess four traits. They should be valu able to the customer, the competencies need to be unique, the competencies should be durable and difficult to imitate and the competencies need to be developed in a way that they cannot be substituted by any other means. The core competencies of Hershey’s lie in the fact that the company is a well-known organization in the chocolate and confectionery industry. It is hugely popular because of its chocolate bars, particularly the S'more. The second competency of Hershey is the quality of the product.... The company also takes care of its perishable products by keeping it in clod storages. The unique resources for the company range from its farmers who supply it with the raw materials to the consumers who buy its products (Hershey’s, n.d). These leverage the output and revenue of the company. 2.2 Porter's Value Chain of Hershey’s – according to Porter’s value chain model, the primary activities and the supporting activities are described as follows: Primary activities Hershey maintains a strong control over its suppliers and pioneers in its inbound logistics operations. Along with the implementation of cold storage, the company highly stresses on the application of organizational theory. Recently, it has implemented the stylized statistical technique of Six Sigma for improving its products. Six Sigma is an extravagant technology applied in manufacturing sector for identifying defects of the products and help improving the products. Sig Sigma technology red uces the error to around 3.4 defects per million. The benefits of Six Sigma for logistics operation include that of improvement in process, reduction in cost as well as increase in operational efficiency. By applying this technique, the companies can determine the root causes of problems and also find out the mechanism of process improvement. Hershey’s company in partnership with GENCO also underwent an implementation of Six Sigma to make a root cause analysis for an optimal sales level. It has implemented Six Sigma in its Lebanon manufacturing unit and planning to implement in other areas as well (Partridge, 2006). The company also provides a sound operational system by offering rigorous training to its