Case Analysis Perdue Farms

2 Pages 532 Words

Perdue Farms
The external threats are as follows:
? Most of the competition sells frozen products for less money.
? Perdue?s cost to raise chickens is above the national average.
? Growth rate in chicken sales is only 5% due to lack of frozen line.
? Over capacity of chickens has reduced wholesale prices, which reduces profit margins.
? Competition is strong in broiler industry with 53 competitors.
? Untapped markets in the Upper Mid- west need to be explored
1. The Perdue Farms, Co. has internal strengths and weaknesses that need to be addressed and evaluated; The strengths are as follows;
? Perdue is vertically integrated which means that they produce the chickens, they breed, hatch the eggs, they select the growers, build Perdue chicken houses, formulate and manufacture their feed, oversee care and feeding, operate their own processing plants, distribute via truck and marketing. They now also sell what used to be waste, such as the chicken feet that is sold to the Orient as a delicacy.
? Privately held firm
? Technologically advanced, ex.,20% more breast meat than the competition
? Birds are fed organically and not feed additives.
? Sell both raw and pre-cooked chickens and turkeys.
? Good compensation package to the workers.
? Non-union company.
? MIS efficient and essential to operating the business.
? Good variety from fresh oven stuffer roasters, cooked prepared foods, cutlets, tenders, Fit n easy and much more.
? Good TQM with mission and vision
? Excellent R&D for better meat to bone ratios.
? Keep overhead low, quality up
? Great diverse product line that has changed with consumer changes.
? Horizontal diversification when they bought Showell Farms, which made them the third largest producer in the broiler industry.
? Great social responsibility, code of ethics
? Environmentally concerned...