Perdue Environmental Scan

“Environmental scanning involves looking at three different environments which ultimately define the company’s playing field. The first one is the entire remote or global environment in which all organizations and industries operate. The second one is the industry in which the company competes or plans to compete. The third one is the internal environment within the company and the companies of any key partners.” In the case of Perdue Farms, Inc. an environmental scan must be conducted. The environmental scan will help Perdue identify not only trends and forces in its environment, but also challenges and opportunities. The keys areas that must be examined while conducting this scan are: economic, technological, political, social, remote, competitors, customers, and capabilities.

Economic Analysis

In this analysis Perdue must identify what economic factors and indicators that must be considered as the strategy is developed. One factor that Perdue must consider is that the export market for chicken is expected to grow at a compounded rate of 2.7% from 2004 to 2009. The company must create international distribution networks in order to capitalize on this opportunity. Perdue plans to expand its network in over 50 countries. With Perdue’s strong position in the poultry industry, the company could immensely gain from the increase in export demand. (Datamonitor, 2006)

Technological Analysis

Perdue is acknowledged as industry leader in the use of research and technology to provide quality products and service to its customers. Perdue spends more money on research than on any other poultry processor. The company employs specialists in avian science, microbiology, genetics, nutrition, and veterinary science.

Political Analysis

The poultry industry is heavily regulated. The Food and Drug Administration (FDA) closely monitors product safety, also, all poultry that arrives at the processing plant is automatically inspected by USDA. Once the livestock is killed, the USDA inspects it again for avian diseases, contamination of feces or other foreign material. If poultry does not meet the USDA standards it is destroyed. USDA inspectors also examine the processing plant to ensure compliance with the sanitary regulations. Congress has mandated that the USDA make this information available online.

Social Analysis

Perdue believes inputting employees first. Perdue strives to meet the needs of its employees to establish commitment to quality and production. “Key to accomplishing this ‘employee first’ policy is workforce stability, a difficult task in an industry that employs a growing number of associates working in physically demanding and sometimes stressful conditions. A significant number of associates are Hispanic immigrants who have poor command of the English language.” (Pearce-Robinson, Case 45, 2004) Perdue focuses on helping its associate overcome their disadvantages in order to ensure employee’s opportunities for advancements. Perdue provides English classes for non-English speaking employees.

Remote Analysis

Environmental issues present a constant challenge to all poultry processors. Detractors argue that the whole growing, slaughtering, and processing poultry is dangerous to workers, inhumane to the poultry, and