Milton Hershey took culture to a whole new level with The Hershey Company. He not only instilled a "fair treatment" culture within the company, he also developed a whole town around it. Read more about Hershey's culture at the link below.
It seems that Hershey is having a difficult time maintaining a competitive advantage while still keeping with the culture that Mr. Hershey envisioned for the company. In order to remain competitive, they have to look to outsourcing and foreign production to reduce costs. However, Mr. Hershey's vision was to keep business in the community and provide as well as possible the company's employees.
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It is really hard for companies to not outsource certain activities. Hopefully in the long-run it will lead to the creation of even more jobs due to the cost savings and lower prices.
ReplyDeleteI can see how trying to maintain a competitive advantage is difficult without outsourcing. Hershey must balance its outsourcing efforts while maintaining its "fair treatment" culture.
ReplyDeleteI relate this to a company posting a new postition. The existing employees want you to promote from within. They feel like if you hire an outsider, they aren't being treated fairly. It's a slightly different situation, but the same principle applies.
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