Tangible and Intangible Resources

Hershey's has several important tangible resources: financial, physical, organizational, and technological. Some of their financial resources include having revenues of over $5 billion. They have about $1.54 billion of debt, but their cash flow is impressively big, allowing for a large borrowing capacity. They have a payout ratio of 63%, indicating a good amount of dividends paid out. Hershey's physical resources include exports to over 90 countries, and ownership/support of several cocoa communities. Organizational and technological tangible resources are connected through Hershey's Electronic Data Interchange (EDI). This resource allows the brokers, distributors, carriers, suppliers, warehouses, and customers of Hershey's to save time and money by entering business transactions via this secure electronic connection on the Internet.

Hershey's intangible resources are human, innovation, and reputational resources. Their human resources are built through their 12,000+ employees. These employees are guided and supervised by the board of directors. This board is a great resource because it is required to have at least a majority of independent directors from outside the company, and these directors' interests are aligned with stockholder interests. The audit committee must also be independent from the company. This independence from the company helps keep ethical problems to a minimum. Innovation resources are a big part of this company. The EDI mentioned about creates very important intangible relationships through the Internet. Another innovative resource is the ability for customers to submit product ideas on the Internet to help the company gain a plethora of customer input. The reputational resources are also very important to the company because without a good reputation, the company would not be able to remain afloat. Their brand name is their biggest resource. With a name so well known all over the world, the company has gained a lot of power. Durability is another resource; this company has been in existence for over 100 years and is the largest producer of quality chocolate in North America. Finally, product promotions done by famous people strengthens a company's reputation. On January 27, 2010, Ashlee Simpson-Wentz introduced the new "Pieces Candies" line. A big name like hers will catch the attention of the younger generations. Resources, both tangible and intangible are the foundation for a company.