Academic journal article Journal of the International Academy for Case Studies

Going Abroad: Tyson Foods in Mexico

Academic journal article Journal of the International Academy for Case Studies

Going Abroad: Tyson Foods in Mexico

Article excerpt

INTRODUCTION

Tyson Foods is headquartered in Springdale, AK and is the world's largest poultry company with annual sales of approximately $7.5 billion and over 70,000 employees. Tyson is a diversified and fully integrated company with 75 processing facilities in the United States and overseas. Tyson has customers in more than 40 countries. It ships product to Canada, Mexico, South America, Central America and the Caribbean, Eastern Europe, the Middle East, Africa, Asia and the Pacific Rim countries, as well as Hawaii and Puerto Rico. More than 10 percent of the company's tonnage is distributed through the International Division. Tyson has direct sales offices in Singapore, Hong Kong, Indonesia, Japan, Korea, Hawaii, and Puerto Rico. Tyson Foods also has undertaken joint ventures in Mexico, Russia, the Philippines and China. This case concerns Tyson facilities in Mexico and how culture influences the business environment. An overview of Tyson Foods Inc is given.

COMPANY/PRODUCTION INFORMATION

Divisions

The divisions of the company include the following:

Poultry              Process 2.8 billion chickens annually, leading
                     supplier of chicken to US military,
                     has a 33% market share of domestic market. The
                     only entities that produce more
                     chicken than Tyson are Brazil and China. Leading
                     exporter of chicken to China, Japan and Russia.
                     Has a 41% share of the retail breaded market.
                     About 6,500 growers are under contract with Tyson
                     to grow chickens with annual payments of $417
                     million. Poultry accounts for 82% of total company
                     sales. (Tyson Foods Processing Facilities
                     Directory, 1999).

Seafood              Operate one of the largest commercial fishing and
                     at-sea processing fleets in the North Pacific and
                     is based out of Seattle, Washington. Also operates
                     a fish meal plant in Shanghai, China and two
                     imitation crab meat plants in Minnesota.

Mexican Original     Second-largest producer of flour and corn
                     tortillas, taco shells, and chips in the U.S.
                     Tyson has 4 plants in AK, NC and IN that produce
                     the products, making them the leading supplier to
                     Mexican restaurants all over the U.S. Produces
                     approximately 90% of all corn and tortilla
                     products used in Taco Bell restaurants and sells
                     product under the Mexican Original label in
                     grocery stores.

Swine                Produces nearly two million hogs annually. Is
                     currently in a joint venture with Purina Mills,
                     Inc. to establish a commercial feed and live swine
                     operation in the Philippines.

Specialty Foods      Produces entree dinners and high-end food products
                     to airlines industry and upscale restaurants. Has
                     a dominant market share of the Home-Meal
                     Replacement market under the Mallard Foods label.

Animal Protein       Most profitable division in the company. Recycles
                     by-products from plants and farms into animal feed
                     and meal.

History

John Tyson started the company in 1931 after taking Arkansas chickens to markets in Kansas City and Chicago. Under his leadership, it became a fully integrated company. He later became a commercial feed dealer for Ralston Purina. Tyson Feed and Hatchery was incorporated and sold baby chicks and feed and transported chickens to market. Throughout the 1950's, John Tyson's company was processing about 96,000 broilers a week. …

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