Technological innovations are important inhelping firms achieve economies of scale and reduce overhead costs and otheroperational costs to be able to expand into other markets with profi
BANKING ACADAMY FACULTY OF INTERNATIONAL BUSINESS REASEARCH TYSON FOODS’S INTERNATIONAL BUSINESS STRATEGY Lecturer : Tran Ngoc Mai Subject : International Business Strategy Group : Dream Chaser Hanoi, September 29, 2022 FULL NAME STUDENT CODE Nguyễn Thị Hồng Ngát 23A4050260 Phạm Vân Anh 23A4050043 Đỗ Thị Thùy Dương 22A4050023 Dương Thị Thu Hương 23A4050180 Lương Ngọc Diễm Linh 23A4050217 Phí Phương Thảo 22A4050485 Phạm Thị Phương Uyên 23A4050393 LIST OF GROUP 8’S MEMBERS Table Of Contents I Brief description of the firm II Phases of global Strategy III External environment IV Internal Environment .23 V Internationalization process 30 VI Subsidiary and corporate level strategy 37 VII Strategy formulation 42 VIII Recommendation 49 I Brief description of the firm Tyson Foods, Inc is an American multinational corporation, based in Springdale, Arkansas, that operates in the food industry.Tyson food was founded in 1935 by founder John W Tyson The company is the world second-largest processor and marketer of chicken, beef, and pork after JBS S.A It annually exports the largest percentage of beef out of the United States Together with its subsidiaries, it operates major food brands, including Jimmy Dean, Hillshire Farm, Ball Park, Wright Brand, Aidells, and State Fair Tyson Foods ranked No 79 in the 2020 Fortune 500 list of the largest United States corporations by total revenue II Phases of global Strategy 1.Buy back and invest strategy The Tyson logo, used as the company symbol from 1978 to 2017 It has been used, with minor changes, since 1972 It continues to be used as a symbol on the company products Tyson brand In 2001, Tyson Foods acquired IBP, Inc , the largest beef packer and the number two pork processor in the United States, gave US $3.2 billion in cash and stock Along with the purchase of IBP, it also purchased the naming rights to an event center in Sioux City, Iowa Tyson has also acquired companies such as Hudson Foods Company, Garrett bird, Washington Creamery, Franz Foods, Prospect Farms, Krispy Kitchens, Ocoma Foods, Cassady Broiler, Vantress Pedigree, Wilson Foods, Honeybear Foods, Mexico Original, Valmac Industries, Thung Heritage Valley, Poultry Lane, Cobb-Vantress, Holly Farms, Wright Brand Foods, Inc and Don Julio Foods On May 29, 2014, the company announced a cash offer of $6.13 billion to acquire all shares of Hillshire Brands, two days after a $6.4 billion bid face and stock for Hillshire by Pilgrim Corp In June 2014, Tyson won the bidding war against Pilgrim Pride, agreeing to buy sausage maker Jimmy Dean and Ball Park sausage for $8.5 billion On 28 July 2014, the company said it would sell its Mexican and Brazilian poultry businesses to JBS SA for $575 million and use the proceeds to pay off debt from the Hillshire purchase Brands pending $7.7 billion Co In May 2018, Tyson announced the acquisition of American Proteins, Inc and AMPRO Products, Inc for about $850 million In early 2018, Tyson, through its venture arm Tyson Ventures, invested in Beyond Meat, Memphis Meats and Future Meat Technologies, companies developing plant-based meat and meat alternatives Clean culture Former CEO Tom Hayes said that this may seem paradoxical," but the investments are part of an effort to meet future consumer needs in a sustainable way On June 1, 2018, Tyson announced that it would be selling Sara Lee, Van, Chef Pierre and the Bistro Collection brands to Kohlberg & Company The acquisition was completed on August 1, establishing Sara Lee Frozen Bakery, based in Oakbrook Terrace, Illinois On August 9, 2018, Tyson announced that it would sell its pizza crust business, including TNT Crust, to Austin-based Peak Rock Capital, who completed the acquisition on September On August 20, 2018, Tyson announced its intention to acquire grocer Keystone Foods from Marfrig Tyson announced it had completed the acquisition on November 30, 2018 On February 7, 2019, Tyson Foods reached an agreement to acquire the European and Thai businesses of Brazilian food company BRF The acquisition was completed on June 3, 2019 On January 10, 2020, Tyson Foods announced that it had sold its hit Golden Island business to Jack Prepared Foods Strategy Tyson is one of the largest raw meat producers in the world, but raw meats have lower margins than prepared meat that firms such as Hormel Foods (and Hillshire Brands) produce Many analysts view the raw meat industry, especially in the United States, to have limited growth To counter this trend, Tyson is expanding its raw meat business outside the United States, but also increasing its presence in the prepared food industry both in the U.S and globally This is why, in 2013, Tyson acquired Don Juilo Foods, a tortilla and snack manufacturer; Circle Foods, a producer of Mexican foods; and Bosco Pizza Tyson’s acquisition of Hillshire Brands for $7.7 billion was primarily to gain quick market share in the prepared meat industry Tyson sold Heinold Hog Markets partly to pave way for the acquisition, but Heinold accounted for only around percent of total Tyson revenues Drivers for a global strategic perspective 3.1 Market drivers: Global customer, similar customers needs: Historically, Tyson has purchased chicken from independent farmers in close proximity to Tyson’s chicken processors This remains the firm’s main strategy in the United States However, due to recent food safety concerns in China, Tyson is spending millions to backward integrate in China by building its own chicken farms In early 2014, Tyson operated around 20 farms in China and expects to operate 90 by late 2015 Tyson’s CEO, Donnie Smith, was quoted as saying, “We just can’t build the chicken houses (in China) fast enough, and we’re going Document continues below Discover more Chiến lược kinh from: doanh quốc tế Học viện Ngân hàng 22 documents Go to course Nhóm Queen of 38 wands - CLKDQT… Chiến lược kinh doanh… None Chien luoc kinh 51 doanh quoc te Chiến lược kinh doanh… None Các đối thủ cạnh tranh trực tiếp với… Chiến lược kinh doanh… None OECD Corporate 200 Governance… Chiến lược kinh doanh… 2023 2024 IBS exercise - nnnn None Chiến lược kinh doanh… None Phân-tích-và-đềabsolutely as fast as we know how to go.” This is likely an xuất-chiến-lược-… important strategy for 35 lược Tyson, considering that traditionally many chicken farms Chiến in China are nothing None kinh doanh… more than mom-and-pop homesteads producing a few hundred birds at a time in open-air farms that are subject to bird droppings from above Research shows bird droppings could lead to increased cases of the bird flu Incontrast, one Tyson farm in China typically can house over 330,000 chickens in 16 climate-controlled buildings each the size of two Olympic swimming pools Trucks are sprayed three times before entering the facility Numerous sanitation procedures are followed by workers on the floor Chicken also remains one of the higher margin-generating proteins available Tyson’s chicken sales in Mexico are expected to remain static in the near future but Tyson projects large gains in both China and Brazil India is projected to have the largest percent increase, but the volume of chicken in India remains well below other regions Despite having principle operations in the U.S., Mexico, Brazil, China, and India, Tyson does business worldwide Transferable marketing: To help maintain its supply of chicken, Tyson pays chicken farmers in the United States on an incentive-based system with farmers who produce the largest quantity of healthy birds earning more To keep chicken from different farms as constant as possible, Tyson provides farmers with both the chickens and chicken feed This also protects farmers from volatile prices of corn and other grains by transferring the volatile nature of feed prices to Tyson In addition, Tyson provides mentoring for all farms, especially farms that are struggling The typical contract in the United States lasts to years, but it can be as long as 15 years for excellent farms 3.2 Cost drivers: Outside the United States, one of Tyson’s primary strategies is to increase chicken production since lower corn prices, increasing incomes, and a demand for safe foods in many foreign markets are driving up demand for Tyson products.sferable marketing 3.3 Achievement In 2021, it is estimated that this company slaughtered about 1,900 million broiler chickens, down 4.5% compared to 2020 Total revenue in the fourth quarter of 2021 is estimated at 12,811 million USD, up 11.8% compared to 11,460 million USD in the same period In the period of 2020 In which, revenue in the chicken segment increased to $ 3,873 million from $ 3.433 million in the fourth quarter of 2020 Tyson main income forecast in 2022 continues to be from the broiler business as the field has achieved consecutive high profits in the last quarters of 2021 Nowaday, Tyson is one of 10 poultry enterprises in the world, as follow: Top 10 poultry enterprises in the world (Photo: Watt) 3.4 Sumary Hear Mr John Tyson, President of the Company, also one of the 1,000 richest people in the world, share his company growth story on the Harvard Business Review: Tyson is a company that achieves growth through is an acronym for the terms Mergers and Acquisitions is an activity to gain control of a business through a merger or acquisition between two or more businesses to own part or all of that business.From the mid-1960s to the present, we have done over 30 deals Including the merger with IBP a few years ago This acquisition doubled the size of our business and paved the way for us to enter the beef and pork business At the time of the merger, Tyson had been in poultry production for more than 15 years And also a few years before that, IBP acquired 14 companies specializing in the production of high value-added items Since these companies have not been incorporated with IBP, the merger is essentially a merger: IBP, the 14 companies acquired by IBP, and Tyson We have worked hard to create business cultural harmony between the merged companies The good news is that most of the M&A deals are successful because our predecessors had foresight, such as predicting an increase in demand for convenience foods Thanks to the acquisition of IBP, we have an additional line of canned beef and pork products So we found a way to get chicken into the canning branch Tyson also confronts the reality that there are too many places where consumers can eat alone or with family, can buy food almost anywhere - in the park, on the street, via vending machine automated goods We needed to make products suitable for Thus, through the process of analysis and calculation, Tyson Food is at the first quadrant Tyson Foods is in this position because its Financial Position (FP) is in the middle due to its high revenue, large income, and relatively low debt-to-equity ratio In addition, the Stability Position (SP) reflects that this industry is subject to great competition from competitors and is prevented from entering the industry Moreover, Tyson Foods' Industry Position (IP) is the highest in the industry Therefore, this is an opportunity for Tyson Food to have a great opportunity to enter other schools The industry's growth rate is quite large and the financial stability is definitely a foundation for Tyson Foods to succeed in other schools However, the Competitive Position (CP) of Tyson Food is only average because the product variety is not really diverse and the loyal customers to the brand are not large enough Because Tyson Food is in the first quadrant - Aggression, our team proposes some strategies for the company to develop the market, such as: First, it must diversify its product portfolio to increase competitiveness with competitors in the industry Second, improve product quality through research and high-technology application Third, enter the potential market with large sales volume Fourth, implement the backward, forward and horizontal intergration strategy The BCG Matrix Thanks to the analysis of the BCG Matrix, our team came up with several strategies for Tyson Food to apply: Prepared food - the first quadrant: Prepared food belongs to the industry with a high growth rate but a relatively low market share Therefore, Tyson Food can consider product and market development strategies to break through to become the company that owns the largest market share in this industry Beef and chicken - the second quadrant: Beef and chicken can be considered as two potential products when the market has a high growth rate and a large market share With this product group, we can penetrate major markets and implement backward, forward, and horizontal integration strategies Pork - the third quadrant: although the market share is large, pork fell into a recession Therefore, businesses need to increase liquidity by lowering prices and gradually reducing products Others - the fourth quadrant: other SBUs may adopt retrenchment, divestiture, or liquidation strategies SWOT Matrix Quantitative Strategic Planning Matrix (QSPM) There were several strategies from the SWOT analysis that could be pursued The two that were determined to be the most attractive recommendations for Tyson food to pursue over the next three years are: Enhanced factory automation Investment in research and development of artificial meat Under the impact of market tightening as well as the covid 19 pandemic, meat processing companies in general and Tyson food in particular fell into a situation of not having enough workers Investing in automated machinery not only helps to solve this situation, but also saves the company significant savings in laborintensive processes such as bone removal Demand for conventional meat alternatives has surged as consumers become increasingly concerned with health, animal welfare and the environment Artificial meat is predicted to be the "food of the future" as between 2000 and 2050, the demand for meat will be expected to double as the world's population passes the billion mark As one of the three largest meat processing corporations in the world with a lot of potential, Tyson food can both still develop its strengths and invest and pour capital into artificial meat startups to lead the trend Below is a Quantitative Strategic Planning Matrix (QSPM) for Sanderson Farms that analyzes the two recommendations: According to the QSPM analysis, it is determined that enhanced factory automation is the more attractive recommendation, with a rating of 2.43 out of 2.11 for Investment in research and development of artificial meat We can see enhanced factory automation solves some of the most pressing problems Tyson food is facing right now And artificial meat is a problem in the future, it can be a potential longterm strategy of Tyson food VIII Recommendation Thus, after the process of researching and applying models to study Tyson Food, my team would like to propose a recommendation as follows: The organization offers various discounts and incentives, regularly conducts promotional campaigns and offers products in attractive new packages to achieve sales growth goals while remaining in the market market => It helps Tyson Foods Inc to expand its customer base even though the market is already saturated Invest to develop new and breakthrough products based on the following criteria: develop new products that refresh or reinvent current products offer new products that share a close association with current product lines offer products in line with the market's consumer trends Regularly survey customer satisfaction and receive customer comments to make timely adjustments Apply science and technology to product research and become a supplier of high quality, unique and hold know-how that no other competitors can imitate Assessment 2: Group Report Team details: Team name (Tutorial Date, time and group number) Dream Chaser Team members Full name Student identification Nguyễn Thị Hồng Ngát 23A4050260 Phạm Vân Anh 23A4050043 Đỗ Thị Thùy Dương 22A4050023 Dương Thị Thu Hương 23A4050180 Lương Ngọc Diễm Linh 23A4050217 Phí Phương Thảo 22A4050485 Phạm Thị Phương Uyên 23A4050393 Please list the full name (first name and surname) of each team member Team goals (Please list your team goals along with suggested measures of success) Team goals Understand and apply IBS's knowlegde in this project Measure of success Achieving a score of 80% Completion of all assessment tasks Achieving a score of 80% Sometimes on time under pressure of deadlines Develop teamwork skill Achieving a score of 90% Team SWOT Consider your own strengths, weaknesses and ideal or preferred roles in a team, and share these with your team members Record them below Team Strengths Weaknesses Nguyễn Thị Teamwork skill Go to school late Hồng Ngát Out-going member Regularly online to solve team's problems Phạm Vân Teamwork skill Sometimes delay Anh Design skill deadlines Talkative Đỗ Thị Thùy Teamwork skill Not much talk with Dương Finish all deadlines team on time Dương Thị Teamwork skill Sometimes delay Thu Hương Take initiative deadlines Lương Ngọc Teamwork skill Sometimes delay Diễm Linh Design skill deadlines Phí Phương Rarely participate Thảo in team's task Rarely check her task Frequently delay deadlines Phạm Thị Teamwork skill Phương Uyên Talkative Sometimes delay deadlines Ideal / preferred role / contribution Task allocation & Completion Please detail various group and Individual tasks below and attribute responsibility to specific team members as appropriate You should also list the scheduled and actual completion dates Team Assesment Task Handout Team Member/s Scheduled date of Actual Date of responsible completion Completion Research 23/08/2022 25/08/2022 26/08/2022 29/08/2022 30/08/2022 5/09/2022 06/09/2022 09/09/2022 Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Handout Research 13/09/2022 15/09/2022 16/09/2022 19/09/2022 20/09/2022 22/09/2022 23/09/2022 25/09/2022 Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Handout Research Fill in the handout Submit to lecture Agreed team behaviours The team agrees to abide by the following guidelines for team conduct: Behaviour Consequence of breach unequal contribution to the dividing score depends on percentage of project task contribution Any absence from class should be communicated Play a truant via group message Meetings The team will meet to discuss the progress of the project at the following times (e.g face-to face, after tutorial): Meeting Day / time / location 24/08/2022 14h00 Banking Academy 06/09/2022 14h00 Face-toface Banking Academy 16/09/2022 10h00 Banking Academy 23/09/2022 15h00 Banking Academy 21/09/2022 Online 13h15 Google Meet Team member sign off Sign off is required after the initial completion of the team charter Team member Date Sign off Nguyễn Thị Hồng Ngát 28/09/2022 Ngát Phạm Vân Anh 28/09/2022 Anh Đỗ Thị Thùy Dương 28/09/2022 Dương Dương Thị Thu Hương 28/09/2022 Hương Lương Ngọc Diễm Linh 28/09/2022 Phí Phương Thảo Linh 28/09/2022 Thảo Phạm Thị Phương Uyên 28/09/2022 Uyên More from: Chiến lược kinh doanh quốc tế Học viện Ngân hàng 22 documents Go to course Nhóm Queen of 38 51 wands - CLKDQT… Chiến lược kinh doanh… None Chien luoc kinh doanh quoc te Chiến lược kinh doanh… None Các đối thủ cạnh tranh trực tiếp với… Chiến lược kinh doanh… None OECD Corporate 200 Governance… Chiến lược kinh doanh… Recommended for you None Case-Study-Details - Nope Financial Report… 100% (1) Survey Report Financial Report… 100% (1) LMA2 - details 19 35 Financial Report… 100% (1) Student handouts chapter Economics 100% (1)