History In 1935, John Tyson started what would later become Tyson Foods Inc. Through forward and backward integration the family business grew into a fully integrated leader of the poultry industry. Their mission is to become the undisputed world leader in growing, processing, and marketing chicken and chicken-based food products.
Stated and Implied Objectives Profit - Net Income increased 816.7% in 1999; Mostly attributed to divestments from meat and seafood business lines; maintain a profit growth Growth - Sustain growth, achieve success in present environment and position Tyson for the future Citizenship - Obey safety and health regulations, take good care of their people, and be socially responsible Survival - Continue to
They were forced to pay a four -million dollar fine and create storage sheds for waste and carcasses. These waste issues along with battling animal rights activist caused big problems.
Animal rights activists and vegetarian groups were tarnishing Tyson’s Brand ID. Information from these groups was spread via the internet and easily accessible to the public. Some groups claimed Tyson products were contaminated and animal abuse was rampant. As activists become more outspoken, the poultry industry needed to defend their position.
Another issue that Tyson had to deal was competition within the industry. Although an industry leader, Tyson still faced rivalry from their three main competitors: Gold Kist Inc., Perdue Farms Inc., and Pilgrim’s Pride Corp. Even though the competition would not be classified as high rivalry, poultry is looked at as a commodity and competitors need to be paid attention to.
Tyson also had to deal with problems associated with management integrity. Many people felt that executive compensation was too high due to a declining stock price. Many employees thought management was only looking out for their own interest. Problems associated with negative interactions with government officials and illegal bribes fueled negative publicity.
Alternatives
Forward Integration – Oklahoma City Poultry and Egg Distribution Facility
Backward Integration – Incorporation of Tyson Feed and Hatchery; manure