5. INFORMATION MANAGEMENT
• LOGISTIC INFORMATION SYSTEM
> help in planning & control logistic
matters
> gathered by limited test market
> done by Grace Bros
- a dept store chain in Sydney
- use to determine brand awareness
11. 2 3
BECOME A MAJOR
DIVERSIFIED FOOD
COMPANY
HERSHEY’S CORPORATE STRATEGY
LEADING
COMPANY IN
EVERY ASPECT OF
BUSINESS
WORLDWIDE
CONFECTIONERY
MARKET
LEADERSHIP
1
13. EXTERNAL BUSINESS ENVIROMENT
LOW: Threat of
New Entrants
LOW ->
MODERATE:
Bargaining
Power of
Buyers
MODERATE ->
HIGH : Threat of
Substitute
Products
HIGH:
Bargaining
Power of
Suppliers
HIGH: Intensity
of Rivalry
Among
Competitors In
An Industry
Porter’s Five Forces Diagram
16. 2) Reliable
2) Reliable
andand
effective
effective
information
information
managemen
managemen
tt
2) Reliable
2) Reliable
andand
effective
effective
information
information
managemen
managemen
tt
1) Specific
1) Specific
marketing
marketing
strategy
strategy
targeting
targeting
the supply
the supply
chain
chain
1) Specific
1) Specific
marketing
marketing
strategy
strategy
targeting
targeting
the supply
the supply
chain
chain
OPERATIONAL SOLUTION
Hershey’s product is produced at its plants in Smith Falls, Unites State which will then exported to foreign market including to Australia. Hershey were first distributed in Australia by America Foods Pty Ltd in 1985 before Hershey International take over by purchasing the equity of America Food Pty Ltd in 1987. A new distributor, Street Ice Cream was appointed to distribute Hershey in Australia market. Distributions were to retailers (supermarkets and grocery chain in Sydney, Brisbane, Perth, New South Wales and Victoria.
Logistics information system is important since it link structure of people, equipment and procedures that put together will help Hershey in planning, implementation and control Hershey’s logistics and the supply chain. Part of Hershey’s logistics information was gathered by means of limited test market. This was done through Grace Bros, a department store chain in Sydney the largest city in Australia. A separate study was also conducted to determine the brand awareness of Hershey. This initial information was supposed to help Hershey International make effective decision in regard to the entry into Australia market
Overall performance of Hershey in Australia was below par. It had succeeded in other countries but had failed in Australia market because the supply chain was not effective. The first distributor America Foods Pty Ltd has financially problem and the second distributor Street Ice Cream have problem distributing to supermarkets in key area
