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Case Study
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Perdue Farms – Corporate Social Responsibility Business Case Study

Case Study Instructions:

FSM 4160 Foodservice & Beverage Strategies & Logistics
Case Study Assignment 2: (20 points)
Perdue Farms – Corporate Social Responsibility (CSR)
The purpose for this assignment is to allow you the opportunity to apply key concepts from the course.
These include application of Porter’s five forces model and completion of a SWOT analysis. The case is
based on a major strategic discussion at Perdue Farms about eliminating antibiotics from hatcheries.
Start by reading the article titled: Perdue Farms Inc.: Antibiotic Use in Hatcheries by Professor Andrew
Hoffman. You must purchase the case study from Harvard Business Publishing per guidelines in the
folder titled: Textbook and Case Study Guidelines. See left hand navigation panel in ulearn for this
folder.
Once you have purchased and read the article by Hoffman, read the article titled: Guidelines for applying
Porter's five forces framework: A set of industry analysis templates. This article will provide insights on
how to apply Porter’s five forces to the Perdue Farms case. Review your notes about SWOT analysis
from readings in your text. Then begin the writing process. Reference all of the above while writing up
your case.
When your case is completed, you must submit your final draft via the Turnitin.com link in the week 10
folder. Please be advised that submissions will not be accepted via email or any other method.
Part 1 Background
1. What is Perdue Farms’ corporate vision?
2. Why would Perdue Farms be interested in Corporate Social Responsibility?
3. Who oversees deciding whether to eliminate antibiotic usage – be specific?
4. What considerations must be weighed before making a decision about antibiotic usage?
Part 2 Analysis
5. What are the organizations Strengths, Weaknesses, Opportunities, Threats? (Please complete
and submit a SWOT analysis with narrative explaining your findings)
6. Apply Porter’s Five Forces using Dobb’s article for guidance. Be sure to rate how strong or weak
each force is.
Part 3 Recommendations
7. List at least three specific recommendations for how Perdue Farms should proceed. Be sure to
support your recommendations with evidence from your analysis (SWOT and Five Forces).
8. Explain using the case detail to reinforce, whether Perdue Farms has a moral and or societal
obligation to eliminate antibiotics from its poultry
Note: You may have to do additional web research specific to the industry discussed in the case when
completing the five forces analysis – be sure to plan accordingly. Please answer these questions in
narrative not bullet form. Please use graphics – present a graphic of your SWOT analysis and Five Forces.
Weave your answers into a thoughtful paper. Take your time and thoroughly proof read and edit your
writing prior to submitting.
FSM4160 Case Study #2
Paper Format: your paper must be typed and edited.
Total Length: 6-8 pages including a cover page, 4-6 pages of content, works cited
Font Size: 12 point font
Line Spacing: Space and a half
Margin: 1” maximum (L an R)
Page Numbers: Bottom of page, center, starting on page 2
1. Cover Page Includes: Student Name, Professor’s Name, Class, Assignment, and Due Date
2. Introduction (Use Heading)
Your introduction provides the reader with the overarching perspective you will share
throughout your paper. Tell the reader what your paper is about.
3. Background & Analysis (Use Heading)
This is where you weave answers to the questions listed above into your paper. Make sure this
section progresses logically from one paragraph to the next. An easy way to assure you maintain
logical progression is to write up this section of the paper and analyze the content of each
paragraph to confirm that the main points in one paragraph link with or properly set up the very
next one. A well written paper flows from one paragraph to the next with intention and clarity.
4. Recommendations & Conclusion (Use Heading)
Review the highlights of the points you made in the body of your quick response. Make a final
point or recommendation. This is where you restate your overarching perspective and make
clear the link between the content provided in the body of the paper (as evidence) and your
final perspective.
5. Works Cited Page (Proper MLA format is required)
Note: Spelling, Grammar and Format matter
The assigned readings include:
Hoffman, A. (2015). Perdue Farms Inc.: Antibiotic use in hatcheries. HBS No. W94C18. Boston, MA:
Harvard Business School Publishing.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: A set of industry analysis
templates. Competitiveness Review, 24(1), 32-45.

 

FSM4160 Case Study #2 FSM 4160 Foodservice & Beverage Strategies & Logistics Case Study Assignment 2: (20 points) Perdue Farms – Corporate Social Responsibility (CSR) The purpose for this assignment is to allow you the opportunity to apply key concepts from the course. These include application of Porter’s five forces model and completion of a SWOT analysis. The case is based on a major strategic discussion at Perdue Farms about eliminating antibiotics from hatcheries. Start by reading the article titled: Perdue Farms Inc.: Antibiotic Use in Hatcheries by Professor Andrew Hoffman. You must purchase the case study from Harvard Business Publishing per guidelines in the folder titled: Textbook and Case Study Guidelines. See left hand navigation panel in ulearn for this folder. Once you have purchased and read the article by Hoffman, read the article titled: Guidelines for applying Porter's five forces framework: A set of industry analysis templates. This article will provide insights on how to apply Porter’s five forces to the Perdue Farms case. Review your notes about SWOT analysis from readings in your text. Then begin the writing process. Reference all of the above while writing up your case. When your case is completed, you must submit your final draft via the Turnitin.com link in the week 10 folder. Please be advised that submissions will not be accepted via email or any other method. Part 1 Background 1. What is Perdue Farms’ corporate vision? 2. Why would Perdue Farms be interested in Corporate Social Responsibility? 3. Who oversees deciding whether to eliminate antibiotic usage – be specific? 4. What considerations must be weighed before making a decision about antibiotic usage? Part 2 Analysis 5. What are the organizations Strengths, Weaknesses, Opportunities, Threats? (Please complete and submit a SWOT analysis with narrative explaining your findings) 6. Apply Porter’s Five Forces using Dobb’s article for guidance. Be sure to rate how strong or weak each force is. Part 3 Recommendations 7. List at least three specific recommendations for how Perdue Farms should proceed. Be sure to support your recommendations with evidence from your analysis (SWOT and Five Forces). 8. Explain using the case detail to reinforce, whether Perdue Farms has a moral and or societal obligation to eliminate antibiotics from its poultry Note: You may have to do additional web research specific to the industry discussed in the case when completing the five forces analysis – be sure to plan accordingly. Please answer these questions in narrative not bullet form. Please use graphics – present a graphic of your SWOT analysis and Five Forces. Weave your answers into a thoughtful paper. Take your time and thoroughly proof read and edit your writing prior to submitting. FSM4160 Case Study #2 Paper Format: your paper must be typed and edited. Total Length: 6-8 pages including a cover page, 4-6 pages of content, works cited Font Size: 12 point font Line Spacing: Space and a half Margin: 1” maximum (L an R) Page Numbers: Bottom of page, center, starting on page 2 1. Cover Page Includes: Student Name, Professor’s Name, Class, Assignment, and Due Date 2. Introduction (Use Heading) Your introduction provides the reader with the overarching perspective you will share throughout your paper. Tell the reader what your paper is about. 3. Background & Analysis (Use Heading) This is where you weave answers to the questions listed above into your paper. Make sure this section progresses logically from one paragraph to the next. An easy way to assure you maintain logical progression is to write up this section of the paper and analyze the content of each paragraph to confirm that the main points in one paragraph link with or properly set up the very next one. A well written paper flows from one paragraph to the next with intention and clarity. 4. Recommendations & Conclusion (Use Heading) Review the highlights of the points you made in the body of your quick response. Make a final point or recommendation. This is where you restate your overarching perspective and make clear the link between the content provided in the body of the paper (as evidence) and your final perspective. 5. Works Cited Page (Proper MLA format is required) Note: Spelling, Grammar and Format matter The assigned readings include: Hoffman, A. (2015). Perdue Farms Inc.: Antibiotic use in hatcheries. HBS No. W94C18. Boston, MA: Harvard Business School Publishing. E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: A set of industry analysis templates. Competitiveness Review, 24(1), 32-45.

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Perdue Farms – Corporate social responsibility
Introduction
Perdue Farms pride itself on empowering consumers and farmers through responsible agriculture and food practices. Currently, the demand for antibiotic-free products has increased among customers while the CDC has indicated that the use of antibiotics in poultry results in antibiotic-resistant bacteria that affect people. Therefore, eliminating antibiotics may strengthen the relationship of Perdue Farms with health consumers. However, the cost of eliminating antibiotics may negatively impact the company’s revenues. Therefore, this paper aims to discuss why Perdue Farms ought to engage in CSR, examine the company’s economic environment using Porter’s Five Forces and SWOT analysis, and present recommendations related to the elimination of antibiotics.
Background and analysis
Perdue Farms was established in 1920 by Arthur and Pearl Perdue. The corporate vision of the company is “To be the most trusted name in food and agricultural products.” This vision has directed the company to become the largest producer of organic chicken in the US while also ranking among the top grain companies in the country. A robust corporate social responsibility structure is vital for establishing and sustaining trust between the firm and customers. Regardless of their nature, socially responsible companies project more attractive images to both shareholders and consumers (He at al., p 253). For Perdue Farms, the stakes of participating in Corporate Social Responsibility are high because the poultry industry is competitive and is also intensively regulated.
Dr. Brady Smythe is in charge of prescribing antibiotics and managing the health of chickens. As a result, he is responsible for the elimination of antibiotics from Perdue’s hatcheries. Nevertheless, any final decision must be voted for by Jim Perdue and other executives. While making the verdict on whether to eradicate antibiotics, the company must consider the increased demand for antibiotic-free products. The company must also consider scientific evidence that shows that antibiotic-resistant bacteria can spread from the farm or meat to people, especially workers at the hatcheries (Hoffman, p 5). However, since the poultry business is extremely competitive, Perdue Farms must also consider how the elimination of antibiotics would impact its revenues.
SWOT analysis
The core strength of Perdue Farms is its quality control mechanism. The company uses vertical integration to control the whole process from the hatcheries to chicken feeds, processing of product, and delivery of final products. Selective breeding is also a strength associated with the company. This process allows the company’s poultry to have added breast meat than normal chicken. Consequently, it creates value for consumers since a piece of chicken has fewer bones and extra meat. Lastly, Perdue Farms is flexible thus adapts quickly to customers’ demands. Consumers have embraced ready meals and moved away from fresh whole chickens. The company has adapted to this trend by providing pre-cooked products.
A major weakness of Perdue Farms is the overreliance on antibiotics...
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