- Published: December 27, 2021
- Updated: December 27, 2021
- Level: Masters
- Language: English
- Downloads: 36
The paper ” The Emperors of the Сhocolates” is a great example of a business essay. One does not have to reach far out to find evidence of the global nature of the economy we live in. a visit to a convenience store is sufficient enough to understand the many countries where the products have undergone changes during different phases in their production cycle. Moreover, modern marketing can be deemed to possess a ubiquitous perspective that encompasses and targets the whole world and is no longer restricted predominantly to any single market. In this respect, the candy bar is certainly attributed to being a multinational product that is par excellence. Chocolate aside from the popular brands such as Coca Cola and KFC is a much more prominent symbol of the consumer culture in the United States, which can be perceived from the relative popularity that a bar of Hershey’s enjoys. Beginning with Lucy Ricardo, seen stuffing herself with bon-bons to the E. T. being urged into hiding with the help of Reese’s pieces, candy has also come to be associated immensely with the pop culture in America. The Emperors of Chocolates by Joel Glenn Brenner is a thin mix of cultural history with business (Nathan Aaseng, 2005). In it, the individual stories of two individual powerhouses of American chocolate brands namely, Hershey and Mars are discussed in a detailed fashion through related anecdotes that intend to understand this business in greater detail.
Perhaps the most interesting aspect of the book is its wide focus on the business implications of the contest between Hershey and Mars, whose economies of scale as well as superiority in sales and marketing have allowed them to flex their muscles over smaller competitors. As such, the American chocolate industry can be understood to be experiencing an oligopolistic competition owing to multiple dominant players. Mars is renowned for being its hostile approach to the press and is not a known entity in the area of corporate transparency especially in revealing information to the financial community (Chantal Coady, 2006). On the other hand, although Hershey is a public corporation, it has remained virtually insulated from any external influences. As such, its strategic direction that is based on ‘ the less said the better’ has not helped in winning the hearts of many investors.
Both the groups are family-owned businesses, less efficient in the case of cost analysis and capital budgeting, possess a slightly lethargic attitude when it comes to devising strategies for the future and are known to be less profitable than other public companies. Mars runs on the business model that runs in a rigorous fashion with strict targets for profits for every division and brand apart from tighter control over the costs. Mars trails the market share of Hershey in the domestic market despite having a global share of 15% (Nathan Aaseng, 2005). The company functions on the lines of a flat management model and pay even for managers are linked directly to performance.
Hershey, whose history since the Second World War, indicated the manner in which it could not capitalize on the opportunity to become a truly global brand like Coca Cola, despite the fact that all its European competition had vanished. It has been reluctant to advertise by citing one reason or the other (such as the economic turmoil of the 1980s which resulted in slashed costs), and has since then tasted only occasional successes and is therefore out of step with respect to the global economy (Chantal Coady, 2006). Having external shareholders have not added anything significant to its competitiveness and remains a family business that is managed by non-family individuals.
Brenner has indicated the significant differences between the two companies, although giving the notion of underplaying them with the hidden intent of making it seem even more competitive among the two. While the aspect of ownership in the two companies has been discussed in a detailed fashion, one cannot find any broad conclusions from this approach as the reader finds the question of whether family-run enterprises have been able to get bigger than the families that manage them has remained unanswered (Joel Brenner, 2000).