Description
I have attached the company I have selected with the commodity analysis and the details for the commodity analysis. please write a detailed analysis answering the questions on the instructions and provided the title page, references, and appendices. also make sure to write in APA format
Unformatted Attachment Preview
Assignment 1: Company Selection
Yogesh Homagai
Pennsylvania State University
SCM 460: Purchasing & Supply Management
Dr. Tony Lynch
January 17, 2024
2
The Hershey Company is a multinational sweets and confections powerhouse, well
known for its chocolate. Hershey’s overwhelming presence in the sugar supply chain
demonstrates its importance in the production, processing, and distribution of sugary products.
Hershey’s market dominance makes it an ideal option for research into the sugar supply chain,
including sugar farming, processing, and distribution.
Sugar, obtained from sugarcane and sugar beets, is an essential commodity used in a
variety of sectors due to its sweetness and preservation properties. It is essential not only for
confectionery and baked goods, but also for the beverage industry and non-food sectors such as
pharmaceuticals and cosmetics. Sugar’s flexibility extends beyond taste, as it contributes to
texture, color, and fermentation processes in baking and alcoholic beverages, making it an
essential ingredient in culinary and industrial uses.
As a major user of sugar, the food processing sector ingeniously uses this commodity to
create a variety of sweet treats. Sugar has an impact on the structural integrity and shelf-life of
items, in addition to their sweetness. Given the industry’s reliance on sugar, this commodity is
critical to the global food supply chain, influencing economic, agricultural, and trade policy
around the world.
3
Reference
Sugar Sourcing. (n.d.). https://www.thehersheycompany.com/en_us/home/sustainability/sustainabilityfocus-areas/responsible-sourcing/priority-ingredients-and-materials/sugar-sourcing.html
SCM 460-001
Commodity Analysis
Spring 2024
Conduct an analysis of firms’ purchasing, supply management and supply chain operations of an
essential commodity or a commodity used in the firm’s operations.
NB. This is a Business-style memo or report to be presented to the CEO or decision-maker(s) in
the firm. You are to assume the role of a consultant.
NB2: You will also be required to present your report to the CEO, i.e., in-class presentation.
Commodity Analysis
• Select a commodity.
• Describe that commodity.
• Identify source/s of that commodity. i.e., countries that produce that commodity.
• Produce and Excel chart of the price variation of that commodity from the start date of
your report to, at a minimum, two weeks before submitting the final report. Your report
should include the opening and closing price of that commodity. Be sure to list the
average price of that commodity.
• Select industry which uses that commodity and a company from that industry.
• Explain the reasons (e.g., COVID, etc.) why the commodity has fluctuated in price.
• Summarize recent pricing of the commodity (include graphs) in your report. NB. Graphs,
figures and tables must not be larger than a quarter page. In addition, provide future
possibilities for price fluctuations and why the specific industry may or may not
anticipate future changes.
• Explain ways in which managers from various parts of supply chain (Manufacturing,
Logistics, Warehousing, and Purchasing) could use the information provided in your
report.
• Highlight any critical factors of the commodity (e.g., scarcity) you assume are important
to help meet the firm’s operational or strategic goals.
Firm Performance
Then using company level data assess the company’s performance using the following metrics:
Return on Assets (ROA) and Inventory Turnover (IT/O).
Guidance
As you conduct your analysis, consider the following questions as a guide:
1. What is the firm’s strategic objective?
2. How does the firm obtain the raw materials necessary for its operations?
3. How does the firm manage the flow of information and resources in its supply chains?
Possible Data Sources
• Purchasing Managers Index
• Yahoo Finance
• Census.gov/econ — for company and industry data. Use 2012 Economic Census
•
•
•
•
•
•
Companies’ websites
Securities and Exchange Commission – to view companies’ 10K
US Department of Agriculture’s Commodity Reports
US Geological Survey’s Commodity Reports
World Bank Commodity Reports
Wall Street Journal
Your report must be in the APA format, Times New Roman, 12pt font, and should not be
more than ten (10) pages – including title page, references, and appendices.
Due Date: March 21st, 2024.
Suggested Report Structure
Title Page
I. Executive Summary
• Highlight findings
II. Introduction
• Discuss the commodity, industry, and company
o Discuss the company in terms of size (number of employees), revenue, etc.
III. Discussion/Analysis
• Evaluate the company’s organizational structure and strategy.
o Is the company’s purchasing strategy linked to its overall strategy?
• Does the firm’s supply chain design allow the company to meet its strategic objectives?
• Discuss the company’s financial position, i.e. How is the company performing
financially?
• Describe and map (if possible) the company’s supply chain.
IV. Conclusions
• State your findings
V. Recommendations
• Suggest possible strategies
VI. References
VII. Appendices
Rubric for Grading Final Project
Content Area
Format
Basis for Grade
Percentage of Grade
Did the student use the
required writing format for
the assignment?
Yes
Business Report
Total Format
Development of Response
Mechanics/Syntax/Grammar A key element of Auburn’s
(MSG)
instructional mission is the
emphasis on written
communication . . .Writing
Across the Curriculum.
Did the student use Standard
English? e.g., Proper subjectverb agreement; proper
sentence structure; proper
paragraph development.
Total MSG
Content
Did the student describe the
commodity and the industry
which uses that commodity?
Did the student provide any
critical analysis of the
commodity and industry in
the report?
Did the student provide any
analysis of the company and
its performance?
Did the student discuss the
company’s sourcing and
purchasing strategies?
Did the student properly cite
any sources used in the
report?
Total Content
Total for Assignment
No
Up to 5%
0
5%
Yes
No
Up to 15%
3%
15%
Yes
No
Up to 80 %
59% or lower
80%
Up to 100%
62% or lower
Purchase answer to see full
attachment
