OSI Group’s Expansion Into The Global Market

OSI Group began in 1909 when a German immigrant opened a butcher shop in Chicago. This shop became OSI Group when it was partnered with McDonalds and rebranded to better reflect its mission. The rise to financial success was due to technological innovation and smart business decisions. Out of the many food suppliers, OSI Group was chosen to work with McDonalds and provide meat products to its restaurants all throughout the world.

A major development in OSI Group’s history was its adaption to flash freezing technology. By using liquid nitrogen to cool products, meat could be sent easier and safer. Giant product lines were built and these patties would end up being manufactured at a rate of over 24,000 tons a year. They have now expanded into other areas of the food market; their lineup now includes produce, sauces and pies. They’ve also secured a foothold into the global market through their partnership with McDonalds and now work to maintain their financial success through continual business acquisitions.

A recent look into their history shows that they have acquired many regional businesses for the assets that they possess. Large factories that are capable of producing several tons of meat products a year are on their shopping list. They have recently acquired a production line in Spain that will let them nearly double their output of poultry. Additionally, a business was acquired which will increase the range of products that they can sell in the European market. OSI Group’s strategy of aggressively acquiring businesses seems to increase their market share through selling a wider range of products and an increase in meat sales.

Although they started small, they became one of the biggest corporations in the United States and have grown to do business in a large part of the world. Their strategy is to keep expansion a priority as they seem to expand to more markets at a rapid pace. Although McDonalds became their ticket to a growth opportunity, they have decided not to become dependent on this partnership. In the beginning of the agreement, OSI Group did build a factory that focused solely on supplying McDonald restaurants with beef patties. When financial growth ensued however, they expanded into other markets with different products and clients.

OSI Group seems to keep expansion a priority. Time will tell the fate of this massive global player in the food industry. As of now, their 20,000 employees feed an incredible amount of people each day through various business like McDonalds, Papa John’s and Subway.

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