Environmental Changes – Tyson Foods

The fact that the environment changes negatively affect companies cannot be ignored. Tyson Foods is a typical example of a company that has been affected by environmental changes as well as the business environment is an agricultural industry. For instance, when drought occurs in a region where food is commonly produced, there would be even less produce to take to the company for processing; therefore, this would lead to scarcity of the food as well as the food products. With scarcity comes a rise in the costs of the products since the supply would surpass the demand (Linnenluecke p85). For the company and several other agricultural firms to maintain their profits, they have to adjust their prices, which would most likely be more than the standard initially set prices.

In the same way, whenever there is a rise in temperature in the environment, the demand for food products that are mostly consumed during the cold seasons will reduce while with a decrease in environmental temperature, the demand for food products consumed during winter reduces (Tyson). Therefore, this affects the companies that specialize in producing the respective food products since their demand chain would reduce.

Although Tyson Foods and several other agricultural companies try to respond to such environmental changes, it is difficult to do that because of lack of diversification entirely. Of course, this is because when companies are set to produce food, they only focus on the line of operation, which makes it difficult for them to respond to the environment change (Linnenluecke120). The fact that environmental changes are also not accurately predictable as well hinder the company’s response whenever a change occurs and the companies are not ready for the change.

In essence, it is clear that environmental changes have a direct impact on Tyson Foods and other food companies in the world – a situation that should be put under control and the companies should be ready to respond to such changes whenever they happen (Tyson).

 

Work Cited

Linnenluecke, Martina K, and Andrew Griffiths. The Climate Resilient Organization: Adaptation and Resilience to Climate Change and Weather Extremes. , 2015. Internet resource.

Tyson. “Tyson Foods.” Welcome To Tyson Foods, Tyson Foods Inc., 2018, www.tysonfoods.com/. Accessed Jan. 2019.

 
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