Sarah Lee Case Analysis

Only available on StudyMode
  • Download(s) : 194
  • Published : April 3, 2012
Open Document
Text Preview
Introduction:

Sara Lee Company’s name came from one of many acquisitions done by Consolidated Foods. The company had different name throughout its history; starting in 1939 when Nathan Cummins purchased C.D Kenny Company. In 1942 he acquired Sprague, Warner & Company and changed its company name to Sprague Warmer – Kenny Corporation moving its headquarters to Chicago. Its first stock exchange was in 1946 and in 1954 they changed its name to Consolidated Foods Corporation to best fit its diversified role in food processing, packaging, and distribution. The company acquired many businesses related and unrelated from its beginning until 2011; per example: in 1968 Bryan foods, a meat products producer, 1978 Chef Pierre, a manufacturer/distributor of frozen prepared desserts, 1987 Bil Mar Foods, a producer of turkey-based products, 1992 BP Nutrition’s Consumer Foods Group, 1999 Wechsler coffee, 2000 Hills Bross, Café Pilao and 2001 The Earthgrain Company (Crafting & Executing Strategy). In 2008, Sara Lee Corporation acquired Café Moka, a family-owned coffee business located in the São Paulo metropolitan area in Brazil. In 2010, Sara Lee Corporation acquired Café Damasco, a coffee business based in the southern region of Brazil (saralee.com). Sara Lee was 8 years old when Charlie Lubin, a bakery entrepreneur, decided to name his new line of cheesecakes after his daughter, Sara Lee. His company was purchased in 1956 by Consolidated Foods, where Mr. Lubin continued to serve as a senior executive for many years. In 1985, Consolidated Foods change its name to Sara Lee Corporation. Although Sara Lee has never had a management role at the corporation, she has appeared in some television advertisements for our bakery products. In her words, her father told her the product “had to be perfect because he was naming it after me.” (saralee.com).

In the many years of its existence the company had different CEOs, like John H Bryan former head of Bryan Meats from 1975 to 2000 who guiding both its diversification efforts and its emergency as a global corporation. In 2000 C. Steven McMillan the new CEO launched strategic initiatives to narrow Sara Lee’s focus on a smaller number of global branded. In 2005 Brenda C. Barnes was appointed as president and CEO and announced a plan to transform Sara Lee into an even more tightly focused company. In its plan to focus there were many divested businesses and in 2006 the company spun-off to its shareholders the Branded Apparel, Americas/Asia, business, into a separate, publicly traded company called Hanesbrands Inc. In addition by the second quarter of 2012 the company is expected to divide into two separate publicly traded companies. “Under the plan approved by its board, Sara Lee’s North American Retail and North American Foodservice businesses (excluding the North American beverage business) will be spun off, tax-free, into a new public company that will retain the “Sara Lee” name.  Its leading brands will include Sara Lee, Jimmy Dean, Ball Park, Hillshire Farm, Chef Pierre and State Fair. The company CEO is Sean Connolly and its headquarter will be in Chicago” (saralee.com). Marcel Smits will be the CEO for the other public company named “D.E Master Blenders 1753 expresses what we have become as an organization, as well as what we aspire to be –  the best blenders in the world – transcending the boundaries of traditional companies and bringing innovations that enhance and improve the way the world enjoys coffee and tea" (saralee.com). The company headquarter will be overseas. The company will consist of Sara Lee’s current International Beverage and Bakery businesses, as well as the North American beverage business.  Its leading brands will include Douwe Egberts, Senseo, Pickwick, Maison du Café, L’OR, Café Pilão, Marcilla and Bimbo (saralee.com). Question 1: Diversification is Sara Lee’s corporation strategy. Its retrenchment strategy reorganized its business lineup and helped to...
tracking img