Report on Business Strategy of Tyson food Inc
Added on 2020-04-15
11 Pages2987 Words63 Views
Business DevelopmentLeadership ManagementEnvironmental Science
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Running head: BUSINESS STRATEGY Tyson Food Inc.Name of the Student:Name of the University:Author note:
1BUSINESS STRATEGY Business strategy of Tysonfood Inc is effective as they play an important role in the meatprocessing industry. Tyson is known as the second largest exporter of beef in US as well as theirserving industries. The main competitor of the company is IBP. The company has takenacquisition strategy, integrating it with growth strategy. They have acquired their next competitorIBP Inc., which has affected their business revenue. As a beef packaging company, they havealso added value to their value chain in the industry (Munro 2013). This strategy helped themimmensely in making the business strong and vertically integrated as well as in forwardintegration. This is the main operational strategy that helps them in competing in the business.Going with their aggressive acquisition strategy, over the years they have also acquired HudsonFoods Inc., Garret poultry, Hillshire Brands and different Brazilian poultry business. Expandingin different key international places, they have also extended their branch in Tokyo, Shanghai,Moscow, London and Dubai (Sector Trend Analysis - Livestock and Meat Trends in the GulfCooperation Council - Agriculture and Agri-Food Canada (AAFC), 2017). Their branch in Dubaiis known as Gulf food and is sponsored by different Dubai originated organisations (TysonFoods Inc. 2017). As a belonging to a food processing company and having the first moveradvantage their products are also differentiated than the competitors. The corporate strategyincludes growth in domestic value added chicken sales, food sales as well as enhancement inchicken production. Their corporate strategy also included innovation in processing mechanismsas well as increasing the innovation in packaging services. Increasing effectiveness in thecustomer relationship management and getting more consumer insights in their product andservices should also be given emphasis in the new strategy. Cultivating the member’s and teamsperformance is also part of their corporate strategy.
2BUSINESS STRATEGY Food industry analysis - Food industry is one of the most growing sector in the US aswell as the international market. The domestic meat industry in UAE is not sufficient to meet theexpectations of the industry. UAE is one of the fastest growing industries stimulated by theirpopulation growth, Urbanisation and rising incomes. In halal meat consumption, UAE is mostlynoted in the international market. Though the population is less, it is also one of the mostessential exporters of the halal meat from the Canadian livestock. As from the gulf corporationtrends the beef consumption is high in the country Sector Trend Analysis - Livestock and MeatTrends in the Gulf Cooperation Council - Agriculture and Agri-Food Canada (AAFC), 2017. Figure: Meat import trends in UAESource: Sector Trend Analysis - Livestock and Meat Trends in the Gulf Cooperation Council -Agriculture and Agri-Food Canada (AAFC), 2017
3BUSINESS STRATEGY According to the report on the imports of the country US ranks fourth among the importers of thecompany. The main competitor of Tyson in exporting to UAE is Brazil and India. In poultry andfrozen beef, United stated has acquired the third position in UAE. SWOT analysis - Strengths – Tyson Food Inc. is one of the largest meat processing industries inUS as well as in the international level. It also has strong position in the country and employsaround 115,000 people. They also have 300 facilities in the company around US and abroadincluding Dubai. Their association with the largest brands of fast food sellers like McDonalds,KFC and Taco Bells has also provided them with a distinct competitive advantage (Tyson FoodsInc. 2017). The diverse group of supply partners are also strong advantage of the company(Johnson, 2017). Weakness – The brand faces immense competition from the local competitors of meat producersand processors. They also have faced several lawsuits regarding water and air pollution. As theindustry’s nature the wastage of the companies are harmful if not processed. Their air and waterdumps were very harmful and they continued to dump the wastage harming the environment bythe report of United States Environmental protection Agency (EPA) (Johnson, 2017). They alsofaced lawsuits in hiring immigrants without proper documents, which affected their face lossbetween the prospective workforce as well as the brand reputation. The company also has limitedmarket share though being in the global market (Cavusgil et al., 2014). Opportunities – the company is one of the most experienced in the industry but their brandingactivities are very less. The brand visibility is also less in the country. They can strengthen theirrelationship with their suppliers as well as with the purchaser like McDonald’s and Taco Bells.
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