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Swot-Sysco

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Submitted By jlmansur09
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SWOT Analysis
Strengths:
• Well-known in the food industry
• Leading supplier in delivering food products and supplies to restaurants and grocery stores
• Great benefits for employees o 401k, stock purchase plan, medical/dental/vision coverage
• Worldwide growth annually

Weaknesses:
• Variety of competition
• Demand for non GMO products, gluten free, and vegan options
• Difficult to get some companies to use them
• Food costs increasing
• No control over food shortages such as the egg shortage due to bird flu o In a June 3 letter to customers, the company’s senior vice president, Scott Sonnemaker, warns them to brace for higher price tags on eggs and a plethora of egg-containing products such as mayonnaise, baking mixes, soups, dressings, desserts, and breaded foods. Noting the scope of harm to the industry, he wrote, “It appears that all of us — suppliers, product manufacturers, foodservice distributors, restaurants and food operators — will be negatively affected until the egg-laying hen population is replenished.” Sonnemaker stated that Sysco is not taking any new egg customers as a result of the shortage. (Terrell, 2015)
Opportunities:
• Having a higher variety of gluten free, vegan, and non GMO products
• Moving into new territories world-wide
• Using more local farmers
• Merging with other food supply companies, similar to Sysco purchasing US Foods in 2013. o “This transaction will position us to significantly accelerate our progress in achieving the vision we have for our company: to be our customers' most valued and trusted business partner,” said Bill DeLaney, Sysco president and chief executive officer. (CSP Daily News, 2013)
• High demand of products
• New products being introduced annually
Threats:
• Demand for cheapest products at a high quality can introduce competition
• Costs of foods increasing
• Food/Product recalls
• Labor costs increasing

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