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DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=yahoo.com; s=s2048; t=1571633899; bh=0GnpN/Df3C6dzEn4ZwmgEzubDxCHA5V7xM9pv2wkjr4=; h=Date:From:To:Subject:From:Subject; b=uSNMCETuyZGAT9tRszFomMtqXDWRR0XSfRsETuOkai0neXxJVxL24f2Wu+0uzjB96T73J2Z1mB7QRGzzBSzPXmJGmRC0oWb91EY4W7uTwYnghUtjf07r/hRpkW0FuX7d4//Re0iymNR/5cnjN5RdTvf59U9vPUS9WBoomNShVSINIVmC8I99sPk4+q+QI4I4emHNI05lHNBebg01dhqJ8Plg4JvOaTUjk/Ox7Fl1OE5OXWlR/Jtuy0jguTTpLQ2gQbWxkWuXklwaOms3whu8N111az25mD5USZdnQkuK25T1sYEs7mHkD4ilJ8FiCiuJY8EQkedkWjD5MOGgdMAe9Q== X-YMail-OSG: m2bpLUUVM1nS2hSXVQjkoaUQuLnfb3a_n19aHQL7xfx3Mk9WkYeAfWkkvQMN5pB 54r6IGhMSj80NHCI7Fypg0U8BbF4DXLaBaHv4JOnpwRf73O_uMgyBKeAqSR9AYXoTKjn3qpy17NK Vj51KAyT3EZiHtv3I4XuAmzVQ9TMPWNVx2iYUPgYdQYNuhdFbuZ5emDYeNZ4Gyu5sU6G2e_u7IFh EXAV3OKd5SJP5fWi7NnsY_4Y0KtfUmT1H7Rc.nIULeVGaWd62gMD50IUIBe7TYVrUia3ujtoQY3X pU1tZEMvEfZUmJd0kk2kZdzFVnatJwdnObDBAXQufC3q6eU6H0nWh7F4.fOi82X6PHM2pEnHU2Ne okC_wPENAJa206xg7Twx5xlQj.WUNFIHdUv9e.ArJj9AeJPRWjJhTeCDQNU1GI8Ori.eE5zTv0Fa W5CY.m5hhxU19k2JNcU18vGSP55ehDQ5r2ZElt5ttVX5xJpfaUE2o1LhvSYuMUjCj8sYlww1EdaT w2PqrjzOFe7zUCNkLaB7UsQ0WD.jWLTk__VIAYwS.yJlGEZMtEsGMPwlNJsrDGY8p_xlfypNoiVp E00jaJAG_sOhmQjHhgP7hT9M.7l63jskDmnKb5imKCKlJpxQCbTbx4BTq0kQOKOlV4c5aYOj0kW1 LnJIPzSLeMj9d1_I36MKKXnmoPyWBfvFgpdCT9SVot7cmTizlWRCdYAD2nsOIpKFsCurT61GRJra 4nvZqyBflzLWiYEY2EiWhs4YigcQghckZoqZ6lCDR2jVBQptPqVeqi9w6oZrZVA0RNa4sapLTLiH JCuVtQvjIOkLhBQugrrkm8ILTReclsdT12nLOSFRvtyauWv_G8QwaHk9caOehKyBREDvG0hB5vu6 W3U4ioZh8gJG5i5eFr00c2G9iIwhS9QlZTQpRzLRE_Hc6AxZa5wc0ejkVrsBUVMsmRDXdHXvutnn Q2cAPN95h7JM2oSfYILJ_TjqKdAaisOcTPRXqtZGnFuVO5rVhxsAWMO28kVm8JMm3E.9MPMXb_7M fbnoY7XXbEX9zPjDkjeCIj4pWCCiwkn5.t66oYJj_X8GPCGW5_grCJou1yRPDVnFry.fUV9bvD19 _diEk5pKBbYlMierZ2KA8TuC5EuPMLh1NVDxk0PePTmMZXsHHL65tWppA11R5lHSMbgj336YPrRP FTvPPS6d.06NOxAqk1uZ6uVHTNkqi4f4a8_aVgZlxIJ8TBIqgGDypklO6UktEpE4Tf5gD8jgmSRr 3ziBq0OQcJK_xLkle7C_MKsZ5yrtmQKHtCy3zGyBfz7C_QK7jdzoOX5LSEgjD5KfHJAOf4bMCyui 9szqPFb88YKUNON4peTK1XyjAfC603c1ARxIcoZQ- Received: from sonic.gate.mail.ne1.yahoo.com by sonic307.consmr.mail.ne1.yahoo.com with HTTP; Mon, 21 Oct 2019 04:58:19 +0000 Date: Mon, 21 Oct 2019 04:58:17 +0000 (UTC) From: [email protected] To: [email protected] Message-ID: <[email protected]> Subject: ERm Analysis MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: quoted-printable Content-Length: 3304
The decision by Costco to become its own chicken supplier will have a more = positive impact in the company as compared to the earlier move of getting t= he birds from external suppliers. Moreover, it will increase the number of = employed people both directly and indirectly and the quality of the product= s will improve since the company will monitor the birds from the time they = are hatched, there genetics and other relevant factors. The local community will also benefit much from the decision, the company h= as started giving local investors the tenders to build chicken houses acros= s all the Nebraska locations. The investors will also manage the project fo= r the first few months and this is a clear indication that local people wil= l be empowered in way. Further we can speculate that, Costco will single ha= ndedly reshape the economy of Nebraska, the company has the potential to po= sitively impact the local residents, farmers and this will eventually lead = to the overall economy and social uplift of the people. It should further b= e noted that, the decision by the company to make such a move was after a d= eliberate brainstorming and engaging experts.  For example, in 2014, the co= mpany solid 78 million birds and most experts were in the view that, to hav= e a guarantee steady supply and make the price pocket friendly the company = should look for an ideal location (Nebraska) to start raising and processin= g their own chicken. Economically speaking, the move was long overdue since= I would break free of the monopoly that was previously enjoyed by companie= s such as Pilgrims and Tyson. The company will further increase its revenues since their biggest facility= at the Fremont, located west of Omaha will produce an average of 2 million= birds a week or 100 million birds per year. The supply will be enough to c= ater required Costco=E2=80=99s rotisserie birds, the raw birds they sell an= d surplus will remain for new market hence generating new revenue for the c= ompany. The number of employed people will rise. This will be both direct and indir= ect employees. Costco will require a feed mill and more than 600 giant barn= s where broilers, the pullets and the hens will be kept. The company will r= ecruit more than 150 farmers together with their teams to work on chicken b= ans. This is a clear indication that hundred of citizens will get job oppor= tunities and there will be a general economy growth among the local people. However, just like any other business, the deal carries some risks.  The co= mpany will have micro-manage the project at its initial stage or else they = may face huge losses that can even lead to the fall of the giant company. R= aising chicken is a delicate operation that requires a lot of skilled manpo= wer. Nonetheless, from a risk management view, if the project succeeds, it = will be a milestone move that will attract more customers. The company will= own the birds, they will be able to control their growth, their genetics a= nd modes of production. When the above model structure works, it will be a = milestone for the company because the cost of production will be greatly lo= wered hence company will review the price to attract more customers and eve= ntually improving the sales. It is risk worth trying.

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