Tuesday, 13 March 2012

SOUND OFF: WHAT YOU SAID

Last week's question:

Should Hershey invest in automation and cut jobs to compete with behemoths such as Mars Inc. and Kraft-Cadbury? Why or why not?

YES: "If Hershey feels the need for automation to stay ahead in the candy business and not lose money, then this is something (it) should do. Unfortunately, this is progress. Hershey is a well-known company with a good history. A reputable history. Milton Hershey would want the business to succeed. However, he would never want to put the Hershey School or the town of Hershey at risk. Whatever decisions Hershey makes, (it has) to have the town of Hershey and the school's best interests come first along with (its) decision.

Also, Hershey is not looked on fondly right now because of moving jobs to Mexico and taking jobs away from Americans. (It needs) to keep this in mind for the future. (It) also always, always (needs) to have a plant in Hershey or it will not be Hershey candy anymore. (It) will lose the best asset (it has). As for the old plant, (the company) should not destroy it but keep it as a museum in memory of Milton Hershey and the first Hershey company. (It) should give jobs to the workers who are going to lose theirs because of the move. It would be much more authentic than the ride through Chocolate World. Tourists would love it along with everyone else."

-Sandra Wesch, Lancaster County

YES: "Hershey should invest to be more efficient.

1. Companies cannot pass price increases to the customer year after year.

a. Commodity prices have increased for Hershey.

b. Unless the industry (Mars and Nestl�) increase prices, Hershey could lose market share and profits by having a higher-cost product.

c. Concerns over "Obama Care" could cause health insurance prices/administrative costs to increase.

2. Companies that fail to be proactive and stay lean, may go the way of the dinosaur!

a. Look at the demise of the steel industry. Souring manufacturing and labor costs made it impossible to compete.

b. Look at the demise of Amp. Failure to take advantage of efficiencies, technology, and operating lean was its demise. Amp had a good and reputable product but was badly managed with too many layers of management.

c. I am convinced the competition (Nestl� and M&M's Mars) would love The Hershey Co. to continue to operate the higher-cost outdated plant.

3. The Hershey Trust

a. The Hershey Trust (Milton Hershey School) owns approximately 75 percent of the voting shares.

b. I would imagine the Hershey Trust forecasts the profitability of The Hershey Co. in order to keep Milton Hershey's school and legacy operating for disadvantaged youths.

c. Most stockholders look for profitable companies (in which) to invest.

d. I would imagine that if The Hershey Co. was not profitable, the Hershey Trust would need to make some tough decisions regarding The Hershey Co.

Hershey Foods needs to take advantage of efficiencies and technology to keep manufacturing jobs here in the United States. Technology and training keep manufacturing jobs in the USA and keep these jobs from moving to low wage countries."

-Tom Zinn, Dauphin County

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