Tyson Foods Inc Tyson Food Case Study

Excerpt from Case Study :

The larger the size of the company operating in the industry, the better and easier it is for it to succeed in the industry. Smaller sized companies have a rough time coping with the challenges and the competition within the industry (Kren & Tyson, 2009). Therefore, the size of the organization investing in the industry is a key determinant of success in the industry. The specialization factor is also significant in determining the success in the market. The market requires large specialization as the foods market is diverse. Different individuals will want different types of services and hence the larger the specialization sector, the easier it is to become accustomed to the trends within the market.

Value added products at the retail level are also highly effective in pushing the company towards success in the market of the foods industry. Many people consider buying products that have been processed and packaged with added value in them rather than the actual meat (Etter, 2008). Therefore, investing in the value added retail products crates better chances of success. Branding and marketing also determine the impact a company makes in the industry. Thus, the way a company brands its products and just like any other industry, marketing the products is a crucial success factor. The vertical integration provides an added advantage in the industry. Therefore, a company that produces own meat sources, then invests in the same and offers additional incentives for other contractors in the industry creates a vertical chain that is truly contributory to the growth and success of the corporation in the area of operation.

Foods and foods services are very sensitive as they directly affect the people's lives. Therefore the quality and quantity control and consistency also determines if the company succeeds in the industry or not. The quality of the services and products offered determine the kind of reception the customers will have for the products. A company that has high quality meat products and services and does so consistently has better chances of thriving within the industry.

Moreover, the quantity supplied has to be steady. This is because; the retailers and other customers of the meat and the products of the company will require a supplier who is available throughout so that they can make the best out of the market (Pulakanam, 2011). Issues of disease and epidemics breakout within the industry pose a danger and setback to the market. Therefore, the company needs to assure the market of the excellence standards of the food and services offered. Therefore, a company or investor that is not consistent in providing better quality and enough quantity of products will not be achieve much from the industry.

Moreover, like any other business venture, the management and workforce strategy of the company play pivotal role in determining the success of the company in the meat products industry. Good management skills make the most impact in the success of the company as there is nobody that can ran effectively without the head. The workforce needs to be stable and effectively endowed in skills as well as be adequately available. Currently, the technology has also entered the industry. Therefore, the extent to which the company applies technology can also determine the success of the industry. Technology is used in production, processing, packaging, storing, preserving and distributing the products. Therefore, a company that employs technology and technological advancements will easily succeed within the industry.

Tyson Foods Inc. is a company that is rooted in the success factors that exist within the industry. The strengths of the company are embodied in the market within the industry. Such include the large and strong clientele available for the company (Pulakanam, 2011). Tyson Foods Inc. enjoys a vast coverage of customers, both local, which is within the United States and the outside world. It has established itself within about 90 countries over the world. This expansive geographical coverage provides the vast strong clientele for the company hence ready market for the company's products.

Second strength is that the organization has already established itself in the industry hence it benefits from the strong market position that it has achieved. This is a crucial and effective strength for Tyson Foods Inc. As such means that it has a strong hold on its customers. The third strength for the organization is that the company has taken advantage of the industry's broadness and flexibility to broaden and diversifies its operations. The broad market means that the company has strength in the market since it offers a variety of choices for its customers (Charlebois & Camp, 2007). The fact that the company has been in existence for long also makes it easier for it to cope with the changes within the market. Therefore, it is strength for the organization.

The weaknesses of the organization are few considering that it has been in continuation for a fair number of years. However, it still faces challenges from the natural factors such as drought. This causes the feeds of cattle to rise hence lowering the cattle supplies (Pulakanam, 2011). This results in low productions hence low exports. Prolonged conditions can lead to the company suffering substantial losses as was witnessed in 2008. Moreover, the rise of the vegetarian industry also poses a challenge to the market for company products. This is slightly affecting the profitability of the industry.

Legal battles are also a setback to the growth of the company. The regulations for the agricultural sectors and the rights of the livestock cause the company to have battles in succeeding. Meeting all the requirements of the law is noteworthy in determining the achievement of the company.

The weak profitability results from the increase in the pricing of the related commodities for the production process (Pulakanam, 2011). However, these challenges are minor compared to the strengths of the organization and the success factors of the industry. Therefore, Tyson Foods Inc. has significantly grown into the status which it holds today. The industry is much favorable for the company.

In conclusion, the meat and meat products industry is highly marketable and profitable. Moreover, the success factors boost the companies that invest in the industry. Tyson Foods Inc. has made a name in the world market because of taking advantage of these success factors. Therefore, it has gained the strengths it is enjoying today.


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