Hershey’s Sustainable Kisses

Hershey’s Sustainable Kisses

April 15, 2018

Hershey hopes its commitment to spend $500 million dollars through 2030 to promote the sustainable sourcing of cocoa will sweeten its image with consumers and help improve the productivity of small farmers in Ghana and the Ivory Coast.

This is in line with with similar moves to source sustainably by companies ranging from Starbucks to Unilever.  Last year, Hershey bought more than 75 percent of its cocoa from certified and sustainable sources, and it’s on track to move that to 100 percent by 2020.

This post is based on the Bloomberg article, Hershey To Spend $500 Million Making More Sustainable Kisses, by Marvin G. Perez and Emily Chasen, April 3, 2018. Image sources: CHOATphotographer/Shutterstock and Shutterstock / Christopher S. Howeth.

Discussion Questions

1. What is driving the changes towards sustainable sourcing at companies like Hershey and Starbucks?

Guidance: More and more, consumers prefer to do business with companies that practice sustainable sourcing of supplies and ethical treatment of workers.  In addition, leadership in many companies also hold these same values themselves.  Thus, from an operations standpoint, having a low cost strategy may take a back seat to a strategy which includes the sustainable Continue reading

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Amazon and Whole Foods: Efficiency vs Community?

Amazon and Whole Foods: Efficiency vs Community?

April 12, 2018

Amazon’s strategic focus on efficiency and streamlined, centralized operations may be at odds with Whole Foods’ community connections and local vendors.

Whole Foods met with about 200 suppliers to discuss new plans under Amazon’s leadership, and many of the grocery chain’s smaller vendors are worried that they may lose business to suppliers who can pay more for shelf space, displays and promotions.

Also, Whole Foods is cutting all store graphic artist positions and other jobs in regional marketing organizations in favor of more consistent branding across the chain.  Some onlookers worry that the chain will lose its uniqueness and become just another typical grocery store, but Amazon believes a centralized approach will help improve the customer experience.

This post is based on the Forbes article, Under Amazon, Whole Foods Is In Danger Of Becoming Efficient, by George Anderson, April 5, 2018. Image source:
Shutterstock / Helder Almeida
.

Discussion Questions

1. How is Whole Foods’ operations strategy changing under Amazon?

Guidance: The focus is shifting from one of differentiation/high quality with unique, community focused stores to one of differentiation/consistent quality with greater emphasis on efficiency in purchasing and uniformity of operations.

2. What are some advantages and Continue reading

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