BUSINESS
ADVANTAGE
Contents
Overview of Company ................................................................................................................................ 2
Discussion of Management Theories ......................................................................................................... 2
Bureaucratic Management Theory ....................................................................................................... 3
Maslow’s hierarchy Theory ................................................................................................................... 3
Financial Intermediaries in Competition .................................................................................................. 5
HRM approach............................................................................................................................................ 6
Competitive advantage ............................................................................................................................... 7
References .................................................................................................................................................... 9
Overview of Company
Tyson Foods is the world's second-largest poultry, hog, and beef-processing company with its
headquarters in the United States. In addition to its well-known brands like Jimmy Dean or
Hillshire Farm, the company is known for its cooked foods and unprocessed meats sold in
supermarkets. There are more than 130 nations where the corporation sells its products and
services. The 123 food processing plants owned and operated by Tyson Foods in the United States
are the biggest annual exporter of meat from the United States. More than 100,000 people work at
Tyson, the largest meat supplier in the United States, which had total profits of $43.2 billion for
the 2020 fiscal year, an increase of about 2 percent from the previous year (Fortune, 2020). Tyson
Foods Inc's overall revenue grew by 23.64 percent, resulting in an approximate 11.77 percent
market share. (Fig. 1.) Over the next two years, the corporation plans to open a total of 12
additional factories, increasing capacity by 1.3 billion pounds. Through the end of the fiscal year
2024, it hopes to have a value-added volume of 50% of its total volume (Tysonfoods, 2019).
Figure, 1: (Fortune, 2020).
Discussion of Management Theories
Organizational structure, leadership, and corporate culture all fall within the purview of
management, which encompasses a wide range of topics. Companies at all levels are impacted by
this domain, which may easily determine whether a business will keep rising. The way a company
is run determines its course and the techniques it will use to get an advantage over the competition.
Companies that are well-managed are capable of thriving in the most challenging situations. The
ideal situation may not even be able to aid it if it is badly handled. Tyson Foods is diversified
throughout all key distribution channels as well as product kinds and locations of both production
and distribution. the sole provider of chicken, beef, or pork across all key distribution channels,
including consumer goods, foodservice, and overseas (Inc, 2020).
Bureaucratic Management Theory
Hierarchy, job specialisation, division of labor, formal practices and regulations, equality, and
recruitment based on merit are all examples of bureaucratic concepts. A structure like this was
essential in huge enterprises, according to Max Weber's bureaucratic theory, for structurally
completing all activities by a large number of personnel. Additionally, in a bureaucratic system,
only technical qualifications are used for selection and promotion. For the purpose of eradicating
harmful practises and situations, Tyson Foods maintains communication throughout all levels of
the firm. Team members that work hourly are critical to the success of this project. A "span of
control" effort is being implemented across all business divisions to increase safety, retention, and
performance by recruiting additional production supervisors. Additionally, Tyson Foods'
recruitment initiatives strive to establish a diverse workforce that reflects the example of market
they serve. To achieve this goal, they actively participate in military, LGBTQ, college, and other
diversity recruitment programmes (Mulder, 2018).
Maslow’s hierarchy Theory
Tyson cares about the individual requirements of its workers and how that affects their
performance. Human behaviour is explained by the premise that people strive to meet their basic
physiological demands (such as food) as well as more sophisticated physiological needs (such as
their own sense of worth) (Figure, 2). There is no evidence to support Maslow's idea of the
hierarchy of wants; rather, he found that employees were less motivated when a need was met.
Suppose an individual with an unsatisfied desire could be convinced to put in the time and effort
needed to fulfil that desire.

Self-Actualization
A goal is at the heart of all they do, and all of their actions are designed to achieve that goal. Tyson
is now offering health and wellness benefits to its employees. The average hourly income has risen
to $24, from $22 in August, and full health insurance, retirement benefits, and sick pay are now
available to workers (Jackson, 2018).

Social needs
Tyson places a high value on making a positive effect in the place where their employees live and
work. For this, they focus on where they can make the most effect from a business and social
standpoint by taking use of their unique assets and maximising influence.

Esteem Needs
Tyson recognises that mental health difficulties affect all part of a person's life, including their
profession, relationships, and even their physical health.

Safety Culture
To achieve these objectives, Tyson cultivates a plant-based safety culture and care. In order to
decide which departments in a plant should be targeted for process improvement, they conduct an
evaluation of the most unstable areas of the plant. Due to these strategies, Tyson Foods has become
a sought-after employer in several labour markets and has seen an increase in performance across
a variety of industry benchmarks (Jackson, 2018).

Psychological needs
They also know that a company's capacity to compete in a complicated and ever-changing
commercial world, attract, engage, and retain employees, all depend on its workforce's mental
health (Tyson sustainability, 2020).
Figure, 2: (Jackson, 2018).
Financial Intermediaries in Competition
Partner with World Resources
Tyson became a member of the World resources research Firm, Researchers have partnered with
the Tyson Foods Center for Efficient Poultry meat Research, announced a global forestry sector
standard in response to the risk of deforestation, and achieved a 7.7% decrease in water use
compared to a baseline year in partnership with the World Resources research Institute to measure
the water risks and create a water stewardship strategy (Tyson foods, 2021). In addition, the Board
of Directors established a Governance and Nomination Committee to oversee sustainability
governance and monitoring. It advises the Board on issues related to business sustainability,
including issues relating to the Company's environmental, social, and governance impacts. This
committee is also responsible for overseeing and reviewing the company's core programmes and
integrating sustainability concepts into its company strategy and decision-making at least once a
year.
Financial Roles and Operations
Despite its size, Tyson Food is not resistant to pressures from competitors or factors outside its
control. New competitors in the market have put the company at a disadvantage, resulting in a
minor loss of market share. In order to deal with these problems, Tyson Foods must develop an
internal feedback process that comes directly from its field sales crew. The way financial planning
is currently carried out is inefficient and inept. According to the company's financial statements,
the corporation has the ability to utilise its cash in a more efficient manner. Tyson Foods has a
greater staff attrition rate than its competitors, and as a result, it must spend significantly more
money on employee training and development than its competitors (Tyson foods, 2021).
Partner with Non-Profit Organisations
The amount of money spent on R&D is significantly lower than that of the industry's fastestgrowing companies. In an effort to better the lives of people living in Tyson communities, Tyson
Foods is looking for proposals from nonprofit organisations that are registered with the Internal
Revenue Service (IRS). Within 20 kilometers of a Tyson Food production facility, the most
attractive proposals offer programmes that have clearly defined outcomes and that indicate how
Tyson Foods' staff can be involved.
Funding
Organizations that match with Tyson Foods' core principles are encouraged to submit sponsorship
proposals that allow the company to have a significant and visible role in the community. It is
necessary to submit proposals at least 90 days before the planned start of any advertising or
promotion (Washington, 2018).
HRM approach
Tyson Food Human resources has a direct effect on the company's overall culture, which
employees rate C+. As Tyson Foods acquires new firms and expands its operations, preserving a
culture that represents its core values is a constant challenge. Tyson can't operate without the
support of their employees. All employees have access to open and honest communication with
their bosses, ensuring that everyone is on the same page. The majority of their workforce is daily
and works in the United States poultry, beef, pork, and prepared food factories. Salary-paying
members of the U.S. team mainly support plant management and corporate roles. Employees at
Tyson can take use of a variety of benefits and training programmes designed to help them succeed
in the job, at home, and in other aspects of their lives. They use three recurring workplace
objectives, which are reassessed each year, to track their progress in implementing these efforts.
Health, life, dental, vision, and prescription medication benefits are available to all Tyson
employees and their families at an affordable cost. All regular full-time employees who have
worked for the company for at least 59 days must be covered by a company-sponsored or family
member-sponsored health plan. As a result, all of the team's eligible members have health
insurance (Tyson foods, 2021).
Employees are qualified to enroll in a retirement income programme, an employee stock
ownership programme, short and the long disability coverage, educational help, and paid vacation
and holiday time. Employees and their insured dependents are encouraged to participate in
activities that will help them improve their health. They use services and assistance programmes
to come up with unique solutions to this problem. As a result of these efforts and other segment
communication received (telemedicine, biometric checks, etc.), the ER utilisation rate has been
reduced by a significant amount.
Competitive advantage
Tyson Foods Inc. has a competitive edge because of its scale and brand identity. As previously
stated, Tyson has a significant advantage over its competitors because of its large market share.
The reality that Tyson provides meat to well-known fast-food chains like McDonald's and KFC
ensures a steady stream of revenue for the meatpacker. Tyson's capacity to compete inside the food
market has been bolstered by its brand equity. There is a lot of competition in the business
category, as well as a lot of regulation to deal with. The commodities segment's cheap switching
costs and a fairly homogenous product result in minimal consumer loyalty despite the industry's
reality of corporate consolidation, with a few big companies generally holding more than 50 % of
the market in various sub-segments (MASTER IN FINANCE, 2019). Companies in the branding
and valuation market are increasingly being threatened by specialist manufacturers and
replacements. Concentration of distribution networks, with a few purchasers representing large
customer accounts, is the standard in both areas. Every segment in which Tyson Foods operates is
a major player: Beef and Chicken; Chicken and Preparation. Each of Tyson's business units has a
list of the company's most significant competitors (Figure, 3).
Tyson Foods' business strategy is a long-term competitive advantage because of the wide range of
products and innovations it offers, which lead to customer delight. Tyson's exclusive concentration
on protein is another key asset that gives them an advantage in the market. They've gotten rid of
their non-protein ventures and are solely focused on the protein industry from here on out. Tyson
Foods is putting $150 million into a food innovation fund in order to produce more protein-based
products (MASTER IN FINANCE, 2019). Entrepreneurs who are working to improve current food
systems will be a part of the company's collaborations. As a result of these qualities, they believe
that they can help companies expand faster through their interactions with customers as well as
their ability to do food and gourmet research and development. Because of this, they intend to have
a significant impact on both domestic and global food security.
Figure, 3: (MASTER IN FINANCE, 2019).
References
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(2020). Tyson
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Inc, T.F. (2020). Tyson Foods Uniquely Positioned to Meet Global Protein Demand. [online]
GlobeNewswire
News
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Available
at:
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release/2020/02/19/1987418/7106/en/Tyson-Foods-Uniquely-Positioned-to-Meet-GlobalProtein-Demand.html#:~:text=Tyson%20Foods [Accessed 4 Apr. 2022].
Jackson, K. (2018). Championing Mental Health with Our Employee Assistance Program. [online]
Tyson Foods. Available at: https://thefeed.blog/2018/10/08/championing-mental-health-with-ouremployee-assistance-program/.
Mulder, P. (2018). Bureaucratic Theory definition by Max Weber | ToolsHero. [online] ToolsHero.
Available at: https://www.toolshero.com/management/bureaucratic-theory-weber/.
Tysonfoods.com.
(2019). Welcome
To
Tyson
Foods.
[online]
Available
at:
https://www.tysonfoods.com/.
Tysonsustainability. (2020). People: Employees – Engagement & Retention | Tyson ESG Hub.
[online] Available at: https://www.tysonsustainability.com/people/employees/engagement-andretention.
Tysonfoods. (2021). Corporate Giving. [online] Available at: https://www.tysonfoods.com/whowe-are/giving-back/corporate-giving.
Washington, D. (2018). UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
[online] Available at: https://s22.q4cdn.com/104708849/files/doc_financials/2021/q4/TSN-202110K-DRAFT-11.12.21.pdf.
MASTER IN FINANCE. (2019). A question of delivery Testing the limits of growth. [online]
Available at: https://run.unl.pt/bitstream/10362/68757/1/Brander_2019.pdf.