Part 1- Company Discussion
Hormel Foods Corporation is a fortune 500 company that was originally founded by
George Hormel in 1891 in Austin, Minnesota. The company produces a variety of meat and food
products as well as the marketing of the products in the United States and internationally(10-k).
Pork and turkey have been the major raw materials for its product for quite some time, but the
company is always expanding. Hormel foods has focused on organic growth, new product
development, and acquisitions(10-k). A few of there well-known products include Spam, Muscle
Milk, and Dinty Moore. Through Hormel Foods International Corporation (HFIC), the company
markets its products all throughout the world. They have a global presence in places like
Australia, Canada, China, Japan, and the Philippines.
As of October of 2016, Hormel Foods had approximately 21,100 active domestic and
foreign employees. The company has 80 total locations, 9 of them being in China. There largest
plant is located in Snowflake, Arizona and it covers there refrigerated foods segment. Since pork
continues to be there primary raw material, the company uses supply contracts to ensure a stable
supply of its raw materials like hogs(10-k).
Hormel Foods mission is “At Hormel Foods, we strive to bring more to the table for
customers, employees, consumers, shareholders and the communities where we live and
work” (Hormel Foods). The company has always been focused to build on there founder’s legacy
of innovation, quality, and integrity. While the company has always highly valued there
customers, employees, shareholders, and communities, they are always motivated to keep it that
way in the future.
Hormel Foods vision is to continue to put a top priority product innovations, process
improvement, and building there branded, value-added product lines. The company understands
that the marketplace is always changing as well as the consumer needs. In order to keep up with
all the change, they are continually changing and bringing in new products, changing flavors,
convenience, and creative menu options to keep their products relevant. There vision for 2017 is
that a strong cash flow will continue and with a solid balance sheet, it will enable them to
continue to return cash to shareholders while providing the foundation to expand their company
through strategic acquisitions and internal investments(10-k).
Current Business Strategy:
Hormel Foods believes that multiple different strategies will help them achieve their
goals. These strategies include: continuing to become a more diversified food company;
expanding and accelerating its food service business; expanding its international footprint;
reducing volatility and increasing balance throughout the business; divesting assets that do not
perform; and modernizing Hormel’s supply chain(10-k).
Hormel Foods Corporation stakeholders include: employees,...