Tyson food inc.

1165 Words Jan 20th, 2008 5 Pages
Introduction Tyson Foods, Inc., is the world's largest fully integrated producer, processor, and marketer of poultry-based food products whose strategy is to "Segment, Concentrate, and Dominate." The firm is vertically integrated (with seven specific levels of activity), contains numerous subsidiaries, has achieved successful acquisitions, operated in a competitive environment that is heavily regulated and scrutinized, and financially stable. At issue herein is the question of how Tyson can continue to enjoy competitive advantages over its rivals (ConAgra and Hudson Foods being principal in this category), to capitalize upon its vertical integration, and to maximize its position as the lowest-cost producer of value-added products in the …show more content…
Tyson needs to reduce its current debt ratio of 0.40 and bounce back from the one-time special charge related to its seafood operations. It needs to grow in markets domestically where it has no presence (a total of 30 states that have no processing facilities). Tyson also needs to continue to realize advantages due to its strategy of integrated differentiation.

Alternatives Tyson's current thrust is toward an increase in its value-added and processed poultry and other food products - a market in which it enjoys brand and name recognition and in which it can capitalize upon its established reputation for quality. To accomplish this, it need to maintain its current low operating cost margin while also acquiring and/or creating new relationships with processors that are established.

Secondly, Tyson must make a critical decision regarding its costly seafood operation, Arctic Alaska. The firm could: 1) spin off or sell this entity to realize an infusion of funds or expansion into the core value-added or processed poultry market; 2) bolster operations in this area. Currently, Tyson considers this firm -
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