Tyson Foods, Inc Case Study

Pages: 9 (2766 words)  ·  Bibliography Sources: 9  ·  Level: College Senior  ·  Topic: Agriculture

Tyson Foods Inc.

Tyson food inc

The first and most significant reason why people work is to sustain their lives. It is for this very reason that several investors have put their resources in the food world market today. There are many companies and business ventures that have been born from this entrepreneurial opportunity. The food companies can be considered as the earliest of all industries in the world. The foods market will never end as every person has to eat. There are hence different types of businesses and companies, depending on the food service they offer. There are some that deal exclusively with fruits, some with fast foods, some big companies with all services in one place and others that specialize in one service. Such is the Tyson Foods Inc. international company.

Tyson Foods Inc. was born in the early 1935 as a simple and one stop provider of food services. Its sole mission was to revolutionize the food market into a standard, quality and successful industry with a difference (Tyson foods inc., 2011). The company was founded in Springdale, Arkansas and hence the headquarters were located there. To date, the company has grown and expanded tremendously into among the first of the largest producers, processors, marketers and distributors of pork, beef and chicken. It specializes in processing meat and protein rich foods and food products. In the S&P 500 association of which it is a member, it is the largest processor of the meat products and the second in the Fortune 500 association.

Tyson Foods Inc. produces a remarkably wide variety of the protein rich and made food products. As a result, it has earned the recognition in the retail market and food services providers as the market leader. It is present in the home nation of United States and other additional 90 countries across the world (Tyson foods inc., 2011). That means it exports so much and hence has a vast market and demand. It is an employer to over 115,000 personnel in the United States and across the world in all its facilities that range slightly above 400 in number across all these nations. It is a well organized institution and has extremely strict and quality core values and code of conduct. It also has a team member's bill of rights with which it strives to achieve trust and integrity within the markets and among its team members, customers and shareholders. In addition, the company also has measures and regulations that aim at providing a safe and friendly working environment for the personnel.

The meats industry in which Tyson Foods Inc. has invested in is among the largest agricultural sectors in the United States (Etter, 2008). According to statistics released in the near previous years, the amount of meat and poultry foodstuffs produced was more than 92.3 billion pounds in 2011. This was an increase of about 200 million pounds from the 2010 production. This is a clear illustration that the industry of foods and foods services is wide and rich in investors and shareholders. It is a highly competitive field with more than enough share of companies that deal in the trade. This means that the Tyson Foods Inc. has so many competitors.

The market for meat and meat product is exceptionally large. In America alone, the industry has such a large market that the produce is sometimes not enough for the whole nation. Let the whole nation alone, some states, especially the urbanized cities do face large completion for the meat and meat products. This creates a much ready market for all the products of the companies that have the service. The industry is therefore, well established and has expanded over the years into international standards.

As Tyson Foods Inc. is an international company, having facilities in about 90 countries across the world, it has many competitors both inside and outside the home nation. Despite the actuality that Tyson Foods Inc. is a gigantic producer of the foods products and covers remarkably expansive regions, it still faces stiff competition from other providers in the market (Etter, 2008). Its principal competitors include companies such as Smithfield Foods Inc., BRF-Brazil Foods S/A ADS, Leucadia National Corp, Hormel Foods Corp. Zhongpin Inc., Hillshire Brands Co. And China Marine Food Group Ltd. among Many Others (Tyson foods inc., 2011).

The competition is wide and particularly stiff, ranging from the actual production process, the source of the meat products, the pricing of products, the marketing and even the workforce sector. The completion for quality and effective workforce is stiff and hence to keep the workers, the company has to establish measures and incentives to lure and keep its workers. Moreover, the other competitors in the industry produce, in surplus, and may offer their products at much lower prices, hence causing the customers to purchase their products over those of Tyson Foods Inc. The quality of service is another sector that the competitors give Tyson foods inc a run for their money. This is because, being an international company, it has to produce in large quantities. For such reasons, maintaining quality is always a challenge as compared to smaller ventures in the same line of production. Therefore, the continuum of the foods market is wide, but the competition is largely prevalent.

Examining the profitability of Tyson Foods Inc., it is vital that we realize the productivity of the same. Tyson Foods Inc. has invested not only in the meat and meat products, but also in farming of the same. The company is among the largest producers of chicken in the United States (Etter, 2008). It also is a gigantic owner of beef and pork, hence producing plenty of the meat it offers into the market. The fresh meat sector is an exceptionally lucrative section of the industry, and as a result, Tyson Foods Inc. has taken all measures to maximize on the profits from the market. The company, in addition to the fresh meat, it offers pre-cooked meat, value added processed meat and refrigerated as well as frozen ready foods. The company has gone to an additional step to integrate the chicken operations. It rears the chicken, hatches the eggs and supplies the contract growers with chicks and the chicken feeds then brings them back to the company for processing. The company in this way cuts down on its expenditures since it produces its own supplies for the industry to process and sell.

As seen from the company past documented reports, the company currently processes approximately 42 million chickens, 390,000 pigs and 144,000 heads of cattle in an average on a weekly basis. This is an extremely large number compared to the other smaller producers in the industry. Its customer market base ranges from local and international retailers, wholesalers and other food service related industries in the United States and the other additional countries, in which it is located (Etter, 2008). Furthermore, the company also is enlisted in the New York Stock Exchange Market. This has earned it the large number of shareholders that have invested in the company. It in turn, has gained many returns from the stock exchange market. For instance, in the fiscal year 2012, the company generated a net income from the sales of about $33.278 billion. In addition, the company provides employment to many people, with the total workforce of above 115,000 workers. The returns of the company in the industry have been on the rise over the years. Therefore, it is true to conclude that, the industry and the company as a whole are remarkably profitable. The profitability of the industry is un-doubtable.

The foods and meat industry have been in the rise for quite a long time. However, this hugely lucrative and evidently profitable industry has had its fair share of ups and downs (Kren & Tyson, 2009). With these challenging times and factors in the market, the industry has witnessed several ventures that started with zeal and a lot of determination to succeed fail terribly. Some of those failures have been able to come back and make strong strategies and make it while others just simply collapsed and subsided for good.

There are several success factors that profoundly influence the industry as a whole. The foods and food services industry are not easy to thrive in as there are many concerns about products of the companies. These success factors include the availability and source of the products to use in the production process (Kren & Tyson, 2009). The access of meat is essential as the companies cannot produce from nothing. Therefore, a company that has many input and source of the meat to produce the final products has better chances of prevailing in the industry.

Additionally, the geographic concentration of the production of the pork beef and poultry products is also a key contributor. The industry requires that the company has a large production base for the company to succeed. Moreover, the operation size and specialization is also equally vital in determining… [END OF PREVIEW]

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