Comparison and contrast of the food production industry

¶ … Food Production Industry

Compare/Contrast of the Food Production Industry

Food Products and Production

Dean Foods

Tyson Foods

Similarities

Comparison

The case study review is engrossed towards four major food production and processing industry. These players are Dean Foods, Kellogg, Seaboard, and Tyson Foods. The food products and food production industry is defined blow. A short description of the companies is helpful in developing understanding about the businesses. The key similarities and differences in strategies of these organizations are also described in the aforementioned sections. Finally the conclusion provides a summary of the major similarities and differences regarding these organizations.

Food Products and Production:

The United States Commerce Department has categorized food industry in terms of a processing industry to transform the livestock's and agriculture products to products for immediate consumption. The food production industry has a stable demand base. It is significant to note that the North American Classification System (NAICS) for detailed understanding of the products i.e. grains, oil, animal products, fruits, and vegetables. Similarly the soft drinks, ice, bottled water, breweries, wineries, and distilleries also fall under the food products category. The cigarettes, cigars, smokeless tobacco, and snuff are also related to food production industry.

Dean Foods:

This section is focused for introduction of key company features facilitating a brief understanding regarding Dean Foods. The primary business focus is primary focus is milk and dairy processing as well as distribution of the products. A large number of its sales (66%) are generated through retail stores. The company is facing a negative growth (22% fall) in years 2012 and 2013. It is 7th in the global ranking and 2nd in U.S. For food and dairy with revenues of $11.7 billion for 2012. The strategy of the company revolves around Get healthy, Get Green, and Get affordable (Dean Foods, 2012).

Kellogg:

The company started its operations in 1906 with toasted corn flakes and today it's operating with 31,000 employees, 18 ma manufacturing units, in 180 countries. Three major competitors of the business are denoted as General Mills Inc., Nestle S.A., and Ralcorp Holdings. The company offers seven categories of products under 29 brand names. It has successfully managed to incorporate product differentiation through various business level strategies. The business is also one of the major contributors in food industry. The growth is attained through effective use of technology. The revenues of the company have grown to $billion over the past year (Kellogg, 2012).

Seaboard:

Seaboard Foods is segmented as an integrated pork meat products producer and processor. The major target markets of the business are United States, Caribbean Basin, Central America, and South America. The business is also involved in commodity trading and milling for Africa, South America, and Caribbean markets. It is also involved in sugar and citrus. Moreover it is also regarded as turkey producer in the United States. The company is focused to create an integrated impact on the related business food channels. It creates these strategies through technological and innovative business practices. The business is also focused to create its brand image and differentiation strategies. The revenue of the business is $6.2 for the last year (Seaboard Corporation, 2012).

Tyson Foods:

The company was established in 1935 and it is now operating in 80 different countries of the world. The major business segment is denoted as portion-based foods. The corporate strategy of the business is regarded as modest growth based on treasury stock acquisitions and international investments. The business is also focused on low cost and value differentiation for gaining the market share. The business also has elaborative human resources, risk management, and marketing strategies. These strategies are complimenting its growth in accordance with the overall market position and economic situation (Tyson Foods, 2013).

Similarities:

The similarity is all four above mentioned corporations cannot be established as they all follow a different products line. In terms of product line the similarities are only identified in terms of a large business segment namely food production industry. The business line of Dean Foods is milk and dairy and Kellogg is focused on cereals and related processed foods. Seaboard and Tyson has similarities in their business segment in relation to meet processing of pork. However Seaboard is pursuing a diversified portfolio in relation to wheat, sugar, and citrus. Whereas the business diversification of Tyson is in meat chicken, poultry, and other portion-based food segments. The overall industry holds a large number of businesses and all four companies have a different business segment. Hence the similarities for business line are not advisable.

The Industry however faces similar political, economic, social, legal, environmental, and technological environments to certain degree. The micro and macro environmental effects of economy are experienced in the industry thorough out the corporations. The companies are focused to reduce their operating costs and taken similar initiatives by deploying technology as well as implementing the latest trends for consumer products. The recession in economy has caused declining growth rates across various sectors. The companies are focused to extend value for their consumers through strategic initiatives. The focus on international market is also a similarity experienced in the review of food sector analysis e.g. Kellogg, Seaboard, and Tyson Foods. These corporations are establishing their production units at various strategic locations across the globe.

Comparison:

The comparison of strategies in business entities of the food sector is performed to review their corporate strategies. The review will provide a significant insight of the related factors infusing their business. The companies are focusing cost reduction peruse different approaches. It is observed that Dean Foods is focusing on reducing its international presence to control costs and leverage their growth. However all other companies are different in this respect as they are focusing on expanding their business to other markets in search of business growth and increased revenues. It is also important to note that the business segment differences also oppose an impact on the strategies. Dairy and milk sector is the most venerable sector in terms of short shelf life of products and international distribution thorough strategic locations is not an advisable approach.