Smithfield :: essays research papers

StrategySmithfield Foods is the largest hog producer and pork processor in the world. They produce 5.1 gazillion pounds of meats yearly. Smithfield products ar sold in North America and 25 worldwide markets. These international acquisitions gave the union a strong hold on the market, upgraded manufacturing facilities, and the opportunity for growth. Smithfield began its involution into foreign markets in 1998 when they made their way into Canada, France, Po reduce, and later on into Mexico. Smithfield Foods headquarters are located in Smithfield, Virginia. However, most of the companys operations are found in North Carolina. Their southern location enables them to give lower wages in order to have more competitive prices. The CEO, Joseph W. Luter III refinement was to keep driving costs down in order to increase the sales. They want to continue this trend into the future in order to increase profits. exploitIn 2002, Smithfields sales were 6.6 times where they were in 1993. In a ddition to this, net income was up 50 times the amount of 1993. The company quickly expanded, and in 2001 they raised 12 million hogs. That was 3.5 times the amount of their closest competitor. Expanding the business abroad was essential in the companys growth. In 1995 net income was 27. 8 million. In 1999 net income was 94.8 million. That increase was the direct effect of international expansion. After the expansion abroad, Smithfield also expanded domestically which sent sales rocketing. By 2002 the company owned or leased facilities in North Carolina, South Carolina, Virginia, Utah, Colorado, Texas, Oklahoma, South Dakota, Missouri, Illinois, Mexico, Brazil, Poland, and Canada. In 2002 the net income was 197 million and the company secured its place as the top in the industry. External AuditThere were many external factors that affected the companys performance and were something that needed to be dealt with. Most importantly was the issue of violent in the environment due to th e hog farming. The residents of eastern North Carolina were unhappy with the situation taking place. The smell of the city was beginning to become unbearable and it was affect the lives of many people. The problem did not affect sales and income however it had become an issue of morality. Another external factor that needed to be dealt with was the availability of land to dispose of the manure. According to the reading, the hogs in eastern North Carolina generate 9 million tons of manure each year.