Essay on Tyson Food Case

2122 Words Nov 8th, 2010 9 Pages
History In 1935, John Tyson started what would later become Tyson Foods Inc. Through forward and backward integration the family business grew into a fully integrated leader of the poultry industry. Their mission is to become the undisputed world leader in growing, processing, and marketing chicken and chicken-based food products.
Stated and Implied Objectives Profit - Net Income increased 816.7% in 1999; Mostly attributed to divestments from meat and seafood business lines; maintain a profit growth Growth - Sustain growth, achieve success in present environment and position Tyson for the future Citizenship - Obey safety and health regulations, take good care of their people, and be socially responsible Survival - Continue to
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* Control of manure- Environmental hazard. * Disposal of animal carcasses- Environmental Protection Agency suit.
Opportunities:
* E-commerce- Actively pursuing to do business on-line. * Horizontal growth- Growth into international markets. * Western U.S.- Expand geographic distribution. * Joint ventures- Insert place in foreign operations. * Fast food chains- Compete for market share with Pilgrim’s Pride dominance in Wendy’s, KFC,etc. * Recycling/ gasification facilities- Use of chicken by-products to power production facilities.
Threats:
* Environmental Protection Agency- Regulations on waste disposal. * Government regulations- Tyson placed on probation. * Barriers to entry- International markets * Animal right activists- Slandering company name through internet. * Drought- Changing costs in grain, their main food ingredient * Substitute products- Turkey, beef, and pork industries.

Issues
The control of manure waste, within Tyson’s facilities, was an environmental issue that caused problems. The Environmental Protection Agency regulated manure disposal and required containment for such waste. This forced Tyson to come up with a solution for controlling the waste in order to decrease the risk of environmental lawsuits.
Tyson faced another waste control issue with the disposal of animal carcasses. Environmentalists were worried about feathers, bones, and other

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