Perdue farms case analysis

Though Perdue Operations has a great deal of positive attributes that have helped them to achieve success in the broiler market, there lies a weak link in their chain of success. The weakness lies in the overcapacity of the poultry market. The Perdue Company has spent a great deal of effort in promoting total process control. They maintain this control through the utilization of a vertically integrated process. From the breeding and hatching, feed manufacturing, the operation of processing plants to the trucking fleet, Perdue controls most aspects of production.

The domestic market is flooded with poultry companies and Perdue is struggling to keep their name afloat. The most effective solution to this problem would be increasing their focus in the international poultry market. By increasing business in the foreign market, Perdue can benchmark their name overseas. An established name could open doors to increase productivity. One method that could prove to be effective in the international market would be the sharing of resources and distribution plants overseas. Via this method Perdue could increase their foreign operations for broilers and also increase the production and sales of other products such as prepared chicken.

To keep afloat in the poultry market, Perdue Operations needs to keep a focus on making their product available internationally, without losing focus of their Total Quality Management driven processes.

Problem, Solution and Timeline (bullet form) PROBLEM · The problem for Perdue is the overcapacity of the domestic market for poultry. They have a winning method of broiler operations via vertical integration to achieve total process control, they now need a process of equal strength to produce prepared chicken, ready to serve meals and improve their operations in the food service areas.

SOLUTION · The solution to the problem of the overcapacity in the domestic market for poultry retail would be to increase foreign operations. Through sharing resources and distribution plants overseas, Perdue can overcome the flooded domestic market. The introduction of food service, fully prepared and ready to serve meals in the international market will follow given the success of the shared resources and distribution. Perdue must maintain their commitment to their TQM and continual research and development.

TIMELINE · Our goal is to introduce Perdue Operations internationally. By 2005, we should have a number of integrated resources with other international companies to increase our foreign poultry operations. By 2010 we should be fully integrated into the international market with processing and distribution plants producing not only fresh chicken but also food services and fully prepared meals.