SYSCO CORP-Dominance in the Food Service Industry

SYSCO CORP-Dominance in the Food Service Industry
Name
Institution
ABSTRACT
By June 30 2012, Sysco was serving 185 facilities in the US and abroad. The square footage for both cold storage and dry storage during this period totalled to 13,109 and 12,465 thousand square feet respectively. 83.2% of these square feet were owned by Sysco while the rest belonged to leasing firms. By 15th august 2012, the common stock of Sysco was owned by a recorded 13,529 people. Compared to 2011, the sales for Sysco increased by 7.8%. This follows a previous improvement of sales by 5.6% between 2010 and 2011. The operating income for 2012 was $1.9 billion, down by 2.1% from the 2011 fiscal figures. In the same period, the operating income decreased by 4.5% as compared to sales. These decreasing figures were attributed to Sysco’s Business Transformation Project. During the 2011 to 2012 fiscal period, the gross profit dollars for the company increased, mainly due to increased sales. When it came to net earnings, there was a reduction of 2.6% and this is due to the Business Transformation Project as noted above. As for earnings per share in 2012, there was also a decrease of 2.6% compared to 2011. In 2012, diluted and basic share prices were at $1.90 and $1.91 respectively. There was also a decrease of the share prices in 2011 compared to the previous year. The Business Improvement Project was still the cause of this reduction in price.
MAIN BODY
SYSCO CORP- Dominating the Food Service Industry for 4 Decades
Introduction
Sysco is the major player in the US food service industry where it has thousands of customers in restaurants, schools, hospitals, and other institutions. The restaurant industry has faced some challenges of late but the company has managed to remain relevant in this sector. Even in the last quarter, the company posted some impressive report. (Graph)While Sysco has been the dominant force in this industry, having been in operation for four decades, it could not have survived all those years were it not for its resilience. What makes Sysco so defiant in a market full of ups and downs?
The purpose of this paper is to research on economic performance of SYSCO CORP and outline the major factors that have contributed to this. The factors that will be discussed include competitive advantage, managerial staffing, and a wide market reach.
SYSCO limited is a renowned food distributor in North America. It is the largest company dealing in food service distribution and marketing in the country. The company started in 1969 and since then, it has grown to have branches in 150 major cities in the United States, as well as Canada and Alaska. With so many distribution points, SYSCO is able to serve facilities such as hotels, schools, hospitals, restaurants and many others. Since its inception, the company has enjoyed steady growth, with annual income and sales increase estimate of 20%.
SYSCO traces its emergence from food distri...