Financial Risk Management at Hersheys

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Details
Case Code:

FINA020

Case Length:

13

Period:

Pub Date:

2003

Teaching Note:

NO

Price (Rs):

0

Organization:

The Hershey Company

Industry:

Food & Beverage

Country:

US

Themes:

Financial strategy ,Enterprise Risk

Abstract

Hershey Foods is the world’s third largest player in the candy business. The company faces many financial risks. These include foreign exchange risk, commodity price risk and interest rate risk. This case outlines the risks and the mechanisms Hershey Foods follows to manage them.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Hershey Foods, Financial risk management, FRM, Candy business, Risk management, Market risk, Foreign exchange risk, Commodity price risk, Interest rate risk, GAAP, generally accepted accounting principles, Hedging, Cashflow hedges, Foreign currency hedge, Fair value hedge, FAS-133 and FAS-138

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