Tyson Foods Business Strategies
Tyson Foods rise from a small start-up business, which began with a few hundreds of dollars, to todayâ€™s multi billion dollar corporation leaves a lot of ideas and strategies for entrepreneurs, business managers and owners to learn from and also succeed.
No Risk, No Gain
Business is about taking risk. You will need to believe you would succeed in investing money, time, and energy into executing an idea. Without the courage to take the risk in exploring and committing resources to actualize an idea, you may not know how successful it would have been.
John Tyson didnâ€™t only commit his life savings to execute his Chicken business idea, but even borrowed more money to add to it. This was because he believed he would succeed, and was prepared to take the risk in trying out the business idea.
Being in Control of Factors of Production
Your business stands more chance to succeed if you are in control of the factors that affect your production, such as supplies, otherwise, it can be brought to it knees if what you need to produce become scarce.
Having been hit by scarcity of baby chicks, and needed feeds, Tyson realized the only way to achieve success in the business was to own a hatchery and a commercial feed business, which he established.
Ensuring Flexibility in Operation
A business with flexible operational structures will be able to adjust to market forces, and economic changes, and respond quickly to seize available opportunities.
Tyson Foods was able to survive the difficult business environment of the early 1960s when the price of poultry products was down compared to the cost of producing them, because it could quickly diversify into profitable related businesses, such as commercial egg business, while making changes to its major business, poultry production.
Investing in the Business
To ensure the growth of your business, and its competitiveness in the market place, you must be ready to make some investments.
In 1971, Tyson Foods invested in constructing a computerized feed mill in Springdale, Arkansas, and a processing plant at Nashville. It also bought two new companies. The investments resulted in Tyson Foods almost doubling in size and in sales.
What is Your Growth Strategy?
To grow your business, you need to have a strategy that will enable you achieve it at the best convenience and cost.
For Tyson Foods, its growth strategy was to acquire existing businesses that had the asset and market share that it desired. Guided by this strategy, Tyson Foods has brought in some of the worldâ€™s largest poultry, pork and beef processing companies into its fold, including Holly Farms, Hudson Foods, and IBP, making Tyson Foods the worldâ€™s most diversified Meat Company.
Taking Your Business Abroad
As your business takes root and flourishes, the next phase to consider should be how to take it to other regions of the world where demand for your products may exist. In fact, sometimes, your products may be in higher demand overseas than what you are currently selling locally.
Tyson Foods began its international move in 1989 by entering into partnership with Trasgo, and in 1995, the companyâ€™s business abroad brought in about $500 million in revenue.
Restructuring is periodically needed
To put your business back in shape, you will need to periodically restructure it to be quicker, more effective and efficient in responding to current challenges.
To keep the company afloat in the late 1990s when prices of poultry products came crumbling, Tyson Foods took a decision to streamline and restructure the company. It sold off some of its non-poultry businesses in 1999, including its seafood and pork businesses.
Read Tyson Foods Business Success Story Here
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