Tyson Foods is a major player in the food industry internationally. They are one of the world's largest processors and marketers of chicken, beef and pork, as well as prepared foods (“About Tyson”, 2014). They are more specifically placed in the meat and poultry processing industry. In this industry workers slaughter animals, process, package, market, wholesale, and distribute the products and product services. Products are sold to other food manufacturers, grocery and meat wholesalers, and retail traders. Last year, the meat and poultry industry sales totaled $186 billion and the industry generates approximately $864.2 billion annually to the U.S. economy (North American Meat Institute, 2015). This industry is mature and growth opportunities are limited. Instead of introducing new products, companies in this industry are focusing on consolidating by purchasing smaller plants to expand ownership (IBISWorld, 2015).
A large reason Tyson is at the top of its industry is because the company has vertically integrated parts of its business to gain control over the supply of raw materials and to keep costs down, overall strengthening its position in the market. For example, its chicken operations are fully vertically integrated from breeding poultry and growing feed …show more content…
They purchased the company for $63 per share, a total of $8.55 billion. Popular brand names such as Sara Lee, Jimmy Dean, Ball Park and Hillshire Farm are under Hillshire Brands. Donnie Smith, president and CEO of Tyson Foods says by investing in Hillshire Brands “…we have a unique opportunity to transform an important segment of our business, and position Tyson Foods to meet American consumers’ growing demand…I am confident that we have the right products and people to create years of enhanced shareholder value and ensure more choices for our customers and consumers” (LexisNexis,