Company Selection
For this final project, I am going to focus on Tyson Foods Inc. The reason I am choosing Tyson Foods is that they are committed to sustainably. Throughout my childhood, my parents spent countless hours establishing a business that gave back to the community. Their ultimate goal was to provide farm-fresh products to consumers. Although resources were scarce, and they couldn’t make their business as big as what they imagined, they had the passion and determination to create something larger than themselves. To this day, they continue to build on their small business with dreams to create the business they always imagined. Through this research, I plan to use Tyson Foods as a guideline that we can use to reference as the business continues to grow.
Financial Context: Key Goods or Services/Features
Tyson Foods is committed to exceeding expectations and delivering top-tier quality products to ensure the success of retail and foodservice industry partners (Our world-class team makes all the difference, n.d.). The company currently owns over 38 brands to include: Jimmy Dean, Hillshire Farm, and Sara Lee. They are responsible for the production of 20% of all beef, pork, and chicken produced in the United States. The company became incorporated in Arkansas on October 07 1947, as Tyson Feed and Hatchery. In 1963, Tyson made its initial public offering selling 100,000 shares of common stock at $10.00 each (Investor FAQs, n.d.). Currently, the company owns over 364 million shares at $85.93 per share (TSN: Tyson Foods, INC Common Stock, n.d.). With the demand for fresh, organic food increasing, Tyson Foods has been focusing on acquisitions. In 2018, Tyson purchased Tecumseh Poultry LLC, making them one of the leading producers of organic branded chicken. Eric Schwartz, chief marketing officer of Poultry for Tyson Foods mentioned that “The Smart Chicken brand that Tecumseh offered was a leader in the key organic category, and category’s growth makes this acquisition a strategic fit for Tyson Foods” (Tyson Foods announces the acquisition of Tecumseh Poultry, 2018). Assets such as this have positioned Tyson Food very well in the market segment.
Financial Context: Organized
Overall, Tyson Foods is positioned for global growth and files using Generally Accepted Accounting Principles (GAAP). According to the SEC, Tyson Foods sold products to approximately 145 countries in 2019 and generated over $7 billion in international sales. In August 2019, Tyson partnered with Grupo Vibra. The agreement between the companies is for both companies to be able to expand globally. Donnie King, group president, international & chief administration officer for Tyson Foods, expects protein consumption to grow by 98 percent. Most of which will happen outside of the U.S (Tyson, 2019). Partnering with Grupo Vibra sets Tyson Foods apart from their competitors because they will have a position in the global market. However, there are many risks and uncertainties that are associated with selling products internationally which include imposed tariffs and exchange rate fluctuations. At this time, Tyson is unaware that these risks will jeopardize the company but they are aware of the negative consequences that are associated with expanding the company overseas.