Running head: MMGP: BACKGROUND INFORMATION 1

MMGP: Background Information

Liberty University
BUSI 520-D11
10/31/2014

MMGP: BACKGROUND INFORMATION 2

Recognized for national and international dominance in the food production industries,
Tyson Foods Inc. ushered in 2014 as the worlds second largest producer of chicken, beef, and
pork products. Boasting more than 6000 distinct products, Tyson Foods has combined service,
sales, and product variety to produce one of Americas most respected and identifiable brands
(Tyson foods, inc., 2014). Founded on principles putting people and lives before profit, Tyson
Foods has carried on the operating mentality that a company has a social obligation to the places
and people in which it serves.
Inspired by American Depression-Era need and personal financial desperation, John W.
Tyson founded Tyson Foods in 1935 when he conducted his first Tyson Chicken Drive from
Arkansas to Chicago, IL. area chicken markets. (Investor Relations Department: Tyson Foods
Inc., 2014). Incorporated in 1947 as Tyson Feed and Hatchery Inc., 1947 witnessed the company
focus expand beyond single service chicken farming by introducing three additional sources of
revenue in the sale of baby chicks, feed services, and poultry transportation services (Investor
Relations Department: Tyson Foods Inc., 2014). Joined later by his son Don Tyson in 1952,
Tyson Feed and Hatchery Inc. was taken public in 1963 and renamed Tyson Foods Inc. (Investor
Relations Department: Tyson Foods Inc., 2014).
Don Tyson
Prompted by his fathers death in 1967, Don stepped into the premier company leadership
role as chairman and CEO of Tyson Foods Inc.. Under Dons leadership Tyson innovated an
industry exclusive vertical supply chain whereby all of the company product would be under the
company control from hatching to customer purchase. Market advantage stimulated by a culture
of freedom for innovation along with strict adherence to budgetary controls allowed Tyson
MMGP: BACKGROUND INFORMATION 3

Foods to navigate years of market downturns and industry shortcomings. In fact, few periods of
company growth match the growth experienced from 1970-2000.
The 1970-1990s proved to be profitable years for Tyson Foods with innovative product
introductions (Tysons Ozark Fry-the first fully cooked/frozen breaded chicken breast patty to
enter the retail market), company branding initiatives (1972 marked the introduction of the new
Tyson oval logo), and extensive mergers and acquisitions (1980 Honeybear Foods, 1989 Holly
Farms, 1995 Culinary Foods of Chicago, 1997 Mallards Food Products of Modesto) (Tyson
foods, inc., 2014). Furthermore, through well-constructed accounting disciplines, product
developments and best practice innovations quickly translated to the P&L bottom line.
In the early years of the 2000s Tyson found itself embroiled in a myriad of lawsuits from
consumer/animal0 advocates and government regulators alike (Food Products Stocks under
Review, 2014). After settling several high profile environmental lawsuits in the early 2000s,
Tyson Foods sought to regain market position by adjusting operating procedures and returning to
a focus of serving its customers and the environments in which its employees/customers lived.
As the decade came to a close, Tyson Foods once more regained its market share, and expanded
its brand initiatives though a variety of community partnerships and involvements with civic
organizations.
2013 to Present
Tyson Foods closed out fiscal 2013 by reporting a company revenue of 34,374 million.
Providing growth in both annual revenue, 3.99% over 2012, and operating margin of .11% over
2012, Tyson produced a debt to equity ratio superior to both of its peers, Pilgrims Pride
Corporation & Hormel Foods (Food Products Stocks under Review, 2014).
MMGP: BACKGROUND INFORMATION 4

2014 proved to be a monumental year for the food production company in the acquisition
of Hillshire Brands for 8.5 billion dollars. Considering the newly acquired Hillshire Brands,
Tyson Foods currently projects year ending company revenue near 42 billion dollars.
Chicken Products
For the purpose of the MMGP course assignment Group 1 has selected the Tyson Foods
chicken product as the focus of the project. Recognizing that Tyson Foods looks to market its
chicken in the three categories of; Primary Processing, Case-Ready Tray Pack, and Further
Value-Added; Group 1 has intentionally narrowed the focus of our project by only considering
chicken products under Tyson Foods Further Value-Added category. Distributed for both in-
home and foodservice applications in both bulk and convenient consumer packaging Fresh
(refrigerated) or Frozen (Tyson Foods, Inc.: Investor Relations Department, 2014). Value-
Added category includes chicken product that is:
Deboned and trimmed
Portioned and sized
Marinated, seasoned and flavored
Par-cooked
Fully-cooked
Battered and breaded
Custom packaging
No antibiotics and/or vegetarian fed
Organic
MMGP: BACKGROUND INFORMATION 5

Kosher
Halal Certified (2014)
Even though Group 1 recognizes that the Further Value-Added category does in fact
appear to contain diverse sub-products within the total category, the uniformity in the overall
operational/marketing strategy has inspired Group 1 to consider the category group as a single
product.


References
Basingstoke: Progressive Digital Media (2014). Tyson Foods, Inc.: Consumer packaged
goods - company profile, SWOT & financial report. Retrieved from http://search.proquest.com
/docview/1566336083?accountid=12085
Investor Relations Department: Tyson Foods Inc. (2014). Prospectus Supplement.
Retrieved from file://C:\blp\ data\ CFd765754d424b5.htm
Media Relations: Tyson Foods, Inc. (2014). Heritage. Retrieved from http://www.
tysonfoods.com/Our-Story/Heritage.aspx
PR Newswire. (2014). Food products stocks under review -- research on Tyson foods,
BRFS.A., pilgrim's pride, and Hormel foods. Retrieved from http://search.proquest.com
/docview/1512606801?accountid=12085
Tyson Foods, Inc.: Investor Relations Department. (2014). Fiscal 2013: Fact Book.
Retrieved from http://ir.tyson.com/files/doc_downloads/Tyson%202013%20Fact%20Book.pdf