Smithfield :: essays research papers

StrategySmithfield Foods is the largest hog producer and pork processor in the world. They produce 5.1 billion pounds of meats yearly. Smithfield products are sold in join the States and 25 worldwide markets. These foreign acquisitions gave the company a strong adopt on the market, upgraded manufacturing facilities, and the opportunity for growth. Smithfield began its expansion into foreign markets in 1998 when they made their expressive style into Canada, France, Poland, and later on into Mexico. Smithfield Foods headquarters are located in Smithfield, Virginia. However, nearly of the companys operations are found in northwards Carolina. Their southern location enables them to give lower wages in secernate to have more competitive prices. The CEO, Joseph W. Luter III goal was to keep impulsive costs down in order to increase the gross sales. They want to hide this trend into the future in order to increase profits.PerformanceIn 2002, Smithfields sales were 6.6 times where they were in 1993. In addition to this, lettuce income was up 50 times the amount of 1993. The company quickly expanded, and in 2001 they raised 12 one thousand thousand hogs. That was 3.5 times the amount of their closest competitor. Expanding the line of credit abroad was essential in the companys growth. In 1995 clams 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 empower as the top in the industry. External AuditThere were more external factors that affected the companys performance and were something that needed to be dealt with. Most important ly was the issue of waste in the environment receivable to the hog farming. The residents of eastern North Carolina were unhappy with the situation taking place. The tactual sensation of the city was beginning to become unbearable and it was affecting the lives of many people. The caper did not affect sales and income however it had become an issue of morality. some other external factor that needed to be dealt with was the availability of land to shed of the manure. According to the reading, the hogs in eastern North Carolina generate 9 million tons of manure each year.