Tootsie Roll Industries has been managed by husband and wife team Melvin and Ellen Gordon until 2015 when Melvin passed away after a short illness at the age of 94 (Tootsie Roll, 2015). They were one of the oldest management teams and have been able to gain strong brand recognition worldwide in the confectionary industry. Sales for Tootsie Roll Industries reached $539,895 million in 2014. Tootsie Roll Industries has been able to continually develop candy at a low price while still maintaining high quality. Tootsie Roll Industries has also been able to show continued growth while continuing to maintain a positive balance sheet (Appendix 2). Tootsie Roll Industries has been able to expand their market growth globally through acquisitions. Tootsie Roll Industries has placed themselves into the position of being able to continue making high profits for the next five years and more because of their continuous monitoring of their competitors activities and their continued cost cutting without compromising quality.
Tootsie Roll Industries, Inc. Globalization Plan
Tootsie Roll Industries (TRI) started their globalization plan to market their product back in 1960 when the established a subsidiary in Mexico. This subsidiary allowed TRI to realize that there was a market for their candy in the global market as their “Tutsi”, as it was known in Mexico, sold well. TRI’s next expansion was in the Philippines in 1969 after they negotiated a licensing agreement. TRI then expanded into Canada in 1971 moving them throughout North America. During this time, TRI was also working on the plans of expanding their market share in the United States through acquisitions of other well branded candy companies, In 1972 they acquired The Candy Corporation of America’s Mason Division and during the 1980’s they acquired Cellas’s Confections (1985) and The Charms Company (1988).
The management team of Melvin and Ellen Gordon has been able to lead the company into having...