BUS 508 Contemporary Business
Seena S. Nelms
What is diversification? According to the Merriam-Webster Dictionary online, diversifications means to produce variety or to engage in varied operations. Diversification is a strategy that takes companies into new markets with new products and services to increase their profitability. Some corporations have diversified and succeeded, while other have tried but failed. Today Sara Lee Corporation is a global manufacturer and marketer of brand-name products for consumers globally focused primarily on the meats, bakery, beverage and household products categories.
Once known as Consolidated Foods Corporation, Sara Lee started out as a wholesale distributor of sugar, coffee and tea in Baltimore, MD. Then in 1956 the corporation bought a company known as Kitchens of Sara Lee. By 1985, Sara Lee was the corporation’s best-known brand name, so known, that the corporation decided to change its name to Sara Lee Corporations (“Sara Lee,” 2012, Our Timeline). Sara Lee continued to grow through acquisition and increased its market presence abroad. Sara Lee has diversified largely over the years now producing food and beverage, intimates and under wear, and household products; and is successful. According to the New York Times (1989), John H. Bryan Jr., Sara Lee's chairman and chief executive officer stated, “The main principle of Sara Lee's diversification strategy is to seek out categories of consumer products where few competitors have used brand marketing”. With brand marketing, Sara Lee is trying to strengthen customer commitment and brand loyalty. Operating with over twenty-one thousand employees, in forty (40) countries, and selling products in over 180 nations worldwide, I think Sara Lee has created a successful brand market. It has set a global presence that most corporations dream about when they try to...