BUS640: Managerial Economics
Instructor: Robert Tocker
February 17, 2014
This paper will discuss the history of Tyson Foods how it got started during one of the most difficult periods of American history during the great depression in 1931 by John W. Tyson when he moved his wife and small son to Springdale, Arkansas searching for new opportunities. This is where he found them, thousands of them, all feathered and squawking. At this point he begins delivering chickens to larger markets in the Midwest.
History of Tyson Foods
Tyson Foods, Inc. [NYSE: TSN], founded in 1935 with headquarters in Springdale, Arkansas, is one of the world’s largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. We produce a wide variety of protein-based and prepared food products and are the recognized market leader in the retail and foodservice markets we serve. Tyson provides products and service to customers throughout the United States and more than 100 countries. We have approximately 115,000 team members employed at more than 400 facilities and offices in the United States and around the world.
Tyson corporate responsibility is to strive and operate with integrity and trust and is committed to creating value for its shareholders, customers and team members which is a very vital part of their success. The company also strives to be faith-friendly, providing a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
Tyson Foods also strives to give back to the communities wherever it does business. The company has a community outreach program that donate million of dollars each year to a host of causes from children and family shelters to libraries, community parks and recreation areas. Tyson foods are also a major contributor to United Way campaigns. Team members along with company were committed to raising approximately $3.6 million for the fiscal year of 2008 and 2009. Also in 2008 and 2009 Tyson donated more than $5.9 million to charities and nonprofit organization, primarily in communities where the company operates.
The company operates four main business segments including chicken, beef, pork, and prepared foods, and is:
Dedicated to developing a best-in-class, value-added product portfolio that meets the needs of it customers and consumers.
Well positioned to provide the products people want, from the most basic cuts of meat to fully-prepared meals and
The only company selling chicken, beef, and pork through all major distribution channels including consumer products, foodservice, and international.
Tyson Foods in my opinion is the best chicken company on the market and the quality of his products is very good and is sold at a reasonable price and very affordable for any family and especially those on a budget. Tyson foods are my favorite products to purchase and I purchased it on a regular basis for my family.
Tyson Foods Finance Tyson Foods Inc. (NYSE: TSN) closed Wednesday's trading session at $23.86. In the past year, the stock has hit a 52-week low of $14.06 and 52-week high of $23.92. Tyson Foods (TSN) stock has been showing support around $23.37 and resistance in the $24.17 range. Technical indicators for the stock are Bullish and S&P gives Tyson Foods (TSN) a positive 4 STARS (out of 5) buy rating. For a hedged play on Tyson Foods (TSN), look at the Jul '13 $23.00 covered call for a net debit in the $22.06 area. That is also the break-even stock price for this trade. This covered call has a duration of 156 days, provides 7.54% downside protection and an assigned return rate of 4.26% for an annualized return rate of 9.97% (for comparison purposes only). A lower-cost hedged play for Tyson Foods (TSN) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Tyson…