Perdue Farms is a major chicken processing company founded in 1920 in Salisbury, Maryland with over $4.6 billion in annual sales. Problems identified include failing to achieve quality standards, overemphasis on production over innovation, issues with forecasting and overcapacity. Solutions proposed include creating a quality inspection department to improve standards, focusing on innovation to diversify products, and implementing a just-in-time production system to address forecasting and capacity issues. After analyzing the alternatives, Perdue Farms selected creating a quality inspection department, focusing on innovation, and just-in-time production as these solutions would help improve quality, increase sales and productivity, and ensure efficient operations.

1. CASE: PERDUE FARM INC.
PRESENTED BY:NOOR AFIDAH BINTI HAMIDI
NURUL AZIAH BINTI KHAMIS
NUR JIHAN BINTI HAMDAN
NUR EZREEZAN BT MOHD AZHAR
CHEN PAN

2. .

3. (i) Background of the
company

4. Perdue Farms is a major chicken
processing company based in
Salisbury, Maryland, United
States with annual sales in excess
of $4.6B

5. Overview
Type
Industry
Founded
Founder(s)
Headquarters
Key People
Products
Revenue
Employees
Parent
Website
Private
Poultry
1920
Arthur W. Perdue
Pearl Perdue
Salisbury, Maryland
Jim Perdue, Chairman
Poultry, Chicken
More than $4.6 billion
20,987
FPP Family Investments, Inc.
www.perdue.com.

6. History
Origin And War Era
Post-war Growth
Full Integration
Perdue Today

7. (ii) Problems identified
in the Perdue Farm

8. Failed to achieve standard
Too much emphasis on one side
Time and forecasting
Overcapacity

9. (iii) Sources of Problems

10. Lack of proper planning
pollution of the environment
Low market presence

11. (iv) Alternative Solutions,
Their Respective Advantages
and Disadvantages

12. Alternative Solutions
Alternative solutions for Failed to achieve standard
Alternative 1: Sign a strict contract with the host country’s
poultry farmer
Advantages:
Reduce costs
Reduce the difficult to achieve standard.
Disadvantages:
The disadvantage is the host country farmer may learn the skills of growing
poultry and it will cause a strong competition.

13. Alternative solutions for Failed to achieve standard
Alternative 1: Sign a strict contract with the host country’s
poultry farmer
Advantages:
Reduce costs
Reduce the difficult to achieve standard.
Disadvantages:
The disadvantage is the host country farmer may learn the skills of growing
poultry and it will cause a strong competition.

14. Alternative 2: create an inspection department
Advantages:
Increase the rate of product achieve standard
Satisfied customer demand
Help company increase sales and revenue and retain more loyal
customers
Disadvantages:
Inspection need a long time
High costs.

15. Alternative solutions for too much emphasis on one side
Alternative 1: Creation and Innovation
Advantages
Attract large customer
Increase the sales
Be easily to stay on the top of the market
Disadvantages
High cost
Face risk

16. Alternative 2: make sure the direction of Research
Advantages:
Follow the market
increase the sales and reduce the costs
Disadvantages:
Difficult to find right direction to research

17. Alternative solutions of Time and forecasting and
Overcapacity
Alternative 1: Just in time
Advantages:
Save investment
Follow the mission
Disadvantages:
Need a good coordination
Impact on customer satisfaction and sales.

18. Alternative 2: Recruit knowledge and
professional employees
Advantages:
Be good for forecasting and solving any issues
Help company reduce losses
Disadvantages:
High costs

19. (v) Chosen Alternative and its
Justification

20. SELECTED ALTERNATIVE AND
JUSTIFICATION
Alternative solutions for Failed to achieve standard
Alternative 2: Create an inspection department
increase the quality and yield grade quality
 increase sales and reduce the risk
very important because there are a lot of
competition in the breeding external

21. Compared to alternative 1 Express strict contract with
the host country poultry farmer : is not appropriate because the company has had its
own with a controlled breeding.
 Monitoring is essential to every poultry farmer to
ensure the achievement standards.

22. Alternative solutions for too much emphasis
on one side
Alternative 1: Creation and innovation
 To ensure product quality and customer
satisfaction as well
 improve productivity and be able to supply
products to customers
 innovation to diversity in medicine, science,
advertising and technology is very important in
providing quality products and services to
consumers

23. Compared to alternative 2, make sure the
direction of research:Perdue Farms company is recognized as the
industry leader in applying research and
technology to provide quality products and
service to customers
So the emphasis on one side is no problem as
they have every specialist in any department
such as, microbiology, genetics, nutrition and
veterinary science.

24. Alternative solutions of Time and forecasting and
Overcapacity.
Alternative 1: Just in time
To ensure that operations run smoothly to the
destination and to clients
is important in supply round inventory always
there for retailers or customers
phrase "fresh young chicken"
Consumers want fresh products so time to
stock supplied to customers is important

25. Alternative 2; Recruit knowledge and
professional employees; Does not need to be implemented because the
company has the expertise in each department
assigned to other firms also provide english
language classes to employees who are lack
fluent in this language
 It is better give them orientation training and
enable them to improve the efficiency and
skills in a particular field.

26. (vi) Conclusion

27. The obvious conclusion that can be seen from Perdue Farm is: -
 They do not easily give up the business that they do. it
started on a small scale, but because of the seriousness and
effort Arrangements are successfully fledged a major
business in the market.
 They are also very willing to take risks, especially in
exploring new markets. They successfully developed
piecemeal chance and do not mind taking a long time to
succeed.
 The right mix of tradition and innovation, with the people's
right forces. Perdue mission field is to improve the qualities
of life with great food and agricultural products. By staying
qualities truth value, Integrity, trustful and cooperative, they
believe, their customers all over the world receive the
products are of high qualities.

28.  Their mission is to create value for their products and services that will
establish Perdue as global food supplier selection. Focus on generating,
innovative value-added products and provide services that exceed customer
expectations are the driving force behind their growth. Instead, Perdue
associates, customers, suppliers and partners have become a team,
supplying the world market with value-added products and commodities.
 This case study provides us with a lesson that Mr. Arthur Perdue start a
small business, but for their commitment and hard work, he was able to
make this business successful. In addition, this case tells us that when the
new blood entering into the business; he tried to bring innovation in
business. This gives the business a new direction. The three generations
have made small business into a billion-dollar industry.
 Therefore, the farm owner Perdue, believe that they want to be so easy to
do business with their customers, so they will not have any reason to do
business with other people.

29. Thank you