This website uses cookies to ensure you have the best experience. Learn more

Sara Case Analysis

981 words - 4 pages

-------------------------------------------------
Sara Lee Corporation in 2011: Has Its Retrenchment Strategy Been Successful?

Executive Summary
Sara Lee Corporation was founded in 1939 and, as of 2001, had acquired more than forty companies. Sales reached $10 billion in 1988, $15 billion in 1994, and $20 billion in 1998.However, revenues peaked in 1998, as Sara Lee struggled to manage the company’s broadly diversified and geographically scattered operations.
In February 2005, Brenda Barnes, Sara Lee’s newly appointed president and CEO, announced a strategic plan to transform Sara Lee into a more tightly focused food, beverage, and household products company. The centerpiece of ...view middle of the document...

Additionally, executives believed that the retrenchment strategy would generate sufficient cash flows to pay the company’s total debt down to between $1.5 and $2 billion by fiscal 2010, pay substantial dividends to shareholders, and repurchase shares of common stock.
Sara Lee missed both revenue and operating profit margin projections for 2010 and it was unclear whether the retrenchment strategy had increased shareholder value.During 2010, Sara Lee had engaged in further retrenchment with the divestiture of its International Household and Body Care business that produced and marketed Kiwi shoe care products, Sanex personal care products, AmbiPur air fresheners, and various insecticides and cleaning products sold outside North America.The same year, management launched a share buyback plan and Project Accelerate, a company-wide cost savings and productivity initiative focused on outsourcing, supply chain efficiencies, and overhead reduction, had saved the company $180 million.Barnes suffered a stroke and was succeeded by CFO Marcel Smits as interim CEO.

Analysis
Sara Lee’s retrenchment is based on a strategy of related diversification.As noted in our text, “Related diversitication is based on value chain matchups with respect to key value chain activities.”With the exception of International Household & Body Care, which was slated for divesture in 2009, the businesses retained were all in the food and beverage industry and, given this relationship, relied on the same value chain activities such as production, purchasing, advertising, marketing, R&D,distribution, and customer service.This strategy provided Sara Lee the opportunity to focus on food and beverages as a core competency while taking advantages of synergies between the different businesses.By facilitating the sharing or transferring of competitively important resources and capabilities, related diversification promised to boost each business’s prospects for competitive success.The retrenchment strategy allowed Sara Lee to take advantage of several cost sharing, skill transfer, and joint promotion opportunities between business units.

Evaluation
While Sara Lee’s performance has been underwhelming since the retrenchment initiative was launched in 2005, the investment and divesture decisions were advised.Many of the businesses...

Other assignments on Sara Case Analysis

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages C or better in their developmental course. | |Late Work and Make-up |It is important to finish assignments in time. In case of late works, make-up assignments will be given but with a 5% score | |Assignments |reduction. | |Topical Outline / Course

Management

1477 words - 6 pages themselves to the Boeing Values. The Code of Conduct is a certification that occurs on a yearly basis to certify all employees that they will follow the Code of Conduct (The Boeing Company: Ethics, 1999-2012). The Ethics Challenge is where Boeing provides training to help educate employees about certain situations that may arise throughout the day. In this challenge, there are specific case scenarios that can be used (The Boeing Company: Ethics

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages of their focal points of having a successful business is having exceeding customer service, and there is no need to go out and acquire new talent when Tanglewood already has the staff capable of developing their KSAOs. However, Tanglewood will need to acquire new talent if the company decides to open up a new store. Should Tanglewood look for new employees or outsource for staffing? In Tanglewood’s case, I would recommend using an outside

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of

Similar Documents

Analysis, Recommendations Of Decrease In Box Office Hits In Film Industry

4198 words - 17 pages Business Research Methods (2014) Decreasing number of box office hits per year in Telugu film industry (Tollywood) - analysis and recommendations Business Research Methods Submitted to Dr Arun Abraham Elias Victoria Management School Victoria University of Wellington New Zealand Submitted by M Rohit PGP/17/151 – Section C Indian Institute of Management, Kozhikode India M Rohit (PGP/17/151) Page 1 Business Research Methods

Mba Kraft Management Essay

2399 words - 10 pages Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials

Overcoming Coercive Management In Schools Essay

6325 words - 26 pages in the principal’s behavior, termination, or leaving), the effects of the abuse continued long after. There were also lasting affects to the culture and environment in the school. It strained the relationships among peers who were witnesses to the abuse (other faculty members who weren’t targeted) but could not say or do anything about it. In the next article “Pressuring Teachers to Leave” from Kappan Magazine, the author Sara Ray

Psychology Of Fragrance Use Essay

7433 words - 30 pages was supported by Grant Agency of Charles University (GAUK 55108/2008), Czech Science Foundation (GACR P407/10/1303) and Czech Ministry of Education grant 0021620843. The authors are also very grateful for a material donation provided by the Yves Rocher, Optimum Distribution CZ & SK and Fann Parfumery. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript. Competing Interests