Company Analysis

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  • Topic: Financial ratio, Tyson Foods, Financial ratios
  • Pages : 10 (2857 words )
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  • Published : April 17, 2012
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Tyson Foods, Inc.
Company Analysis

Strategic Management

Table of Contents
Introduction
Executive SummaryPage 3-4
SWOT Analysis
StrengthsPage 5
WeaknessesPage 5-6
OpportunitiesPage 6-7
ThreatPage 7
Matrices
EFEPage 8-9
IFEPage 9-10
CFMPage 11-12
GraphsPage 13
Financial Statement Analysis
RatiosPage 14
GraphPage 15
Analysis of RatiosPage 16
Worth of the BusinessPage 17
Conclusion
RecommendationsPage 18
Bibliography
AnnotationsPage 19-21

Executive Summary
This summary will reflect the development of a strategic analysis of Tyson Foods, Inc. and will further evaluate the company’s standing within the food industry. This report contains a SWOT analysis, an EFE matrix, an IFE matrix, a CPM matrix, and the financial ratios for the company, the financial worth of the company, and recommendations.

Tyson Foods, Inc. is one of the world’s largest processors and marketers of chicken, beef, and pork as well as prepared foods. The company provides products and services to customers throughout the United States and more than 90 countries. Tyson employs 115,000 team members at more than 400 facilities and offices in the U.S. and around the world. Tyson Foods’ primary philanthropic focus is hunger relief. The company began strategically working in this area in 2000, with a formal national partnership with the hunger relief organization, Share Our Strength.

The SWOT analysis revealed that Tyson Foods, Inc. is a company ranked in the top tier of the industry with a very broad and diversified portfolio. This status affords them a very unique and strong market position over many of its competitors. Although Tyson Foods has encountered some legal trouble, the company has been able to continue its success. The vast majority of Tyson Food’s problems are those that are mainly internal. If they decide to improve on their flaws, Tyson Foods could improve its position in their industry.

The results, of the IFE and EFE score calculations, indicated that Tyson Foods IFE score was 2.65 and their EFE was 2.60. Although they are above the average weighted of 2.50 both internally and externally, they are still stronger internally as opposed to externally. When compared to other companies, such as Hormel and Dean Foods, Tyson has the overall highest score. The CPM for Tyson was 3.70, whereas Hormel’s was 3.40 and Dean Foods was 2.90. However this does not mean Tyson is performing better than the others in its industry.

The financial ratios for Tyson Foods, Inc. indicated that Tyson Foods entered into some sort of financial trouble as discussed in the SWOT analysis of the company. The following ratios were used: current ratio, quick ratio, long term debt to equity ratio, debt to total assets ratio, gross profit margin, net profit margin, operating profit margin, return on total assets, return on stockholder’s equity and the total assets turnover.

In conclusion, I determined a few recommendations of Tyson Foods, Inc. for the investors, customers, and the company. The recommendations I made were Tyson should begin improving its work profitability and improving its unethical behavior which led to most of its legal proceedings.

SWOT ANALYSIS
Strengths
1) Most recognized brands in the U.S. retail channel
http://www.tyson.com/About-Tyson.aspx

2) Strong market position
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODUyOTh8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 3) Broad and diversified portfolio
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODUyOTh8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 4) Charitable Giving to the surrounding Community
http://www.tyson.com/About-Tyson.aspx

5) Most popular brands among families
http://www.tyson.com/About-Tyson.aspx

Weaknesses
1) Legal Proceedings...
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