1. What is Sara Lee’s corporate strategy? How has its retrenchment strategy changed the nature of its business lineup? The original corporate strategy was acquiring businesses and adding to the corporate bottom line. The corporate strategy changed from acquiring businesses to divesting from non-core lower producing businesses and creating a more focused company along its product lines of food‚ beverages and household products. How has its retrenchment strategy changed the nature of its business
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Has Strategy Changed? Kathleen M. Eisenhardt Has strategy changed in the wake of the recent economic frenzy and subsequent downturn? Is the New Economy finished? Has the Old Economy returned? At this point‚ most managers understand what the advent of the Internet implies — operating efficiency for most companies‚ a terrific channel for some and a fundamentally new business opportunity for only a few. So is it back to “strategy as usual”? The answer is no. While many executives were focused on
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Europe have been frustrated by the difficulty in identifying the risk exposures at the largest and most levered financial institutions. Yet‚ at the time‚ it was unclear how such data might have been used to make the financial system safer. This paper is an attempt to show simple ways in which this information can be used to understand how deleveraging scenarios could play out. To do so the authors develop and test a model to analyze financial sector stability under different configurations of leverage
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A retrenchment grand strategy is followed when an organization aims at a contraction of its activities through substantial reduction or the elimination of the scope of one or more of its businesses in terms of their respective customer groups‚ customer functions‚ or alternative technologies either singly or jointly in order to improve its overall performance. E.g: A corporate hospital decides to focus only on special treatment and realize higher revenues by reducing its commitment to general case
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------------------------------------------------- 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
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Corporate-level strategy is focused mainly on the decisions over the scope of the firm ’s activities‚ mainly: product scope‚ geographical scope‚ and vertical scope. One of the myths of corporate-level strategy is that strategy formulation can be separated from implementationthat strategy is constructed first‚ then the appropriate management and organizational structure is selected afterwards. Unfortunately‚ this will result in a poorly designed strategy since it does not take into account the
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Case: Sara Lee Corporation Issue: Has Sara Lee’s retrenchment strategy been successful? The five competitive forces for Sara Lee Corporation have overall caused an increase in competition. The threat of substitute products and buyer bargaining power are both a result in this increase. Sara Lee negotiates with the buyers so that their products are able to get more shelf space in the supermarkets. The five most important key success factors for Sara Lee’s various industries are distribution
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Sara Lee Retrenchment Case 1. What is Sara Lee’s corporate strategy? How has its retrenchment strategy changed the nature of its business lineup? The Sara Lee Corporation decided to sell 8 businesses that had been targeted as non-strategic. They decided to concentrate on the grocery portion of their businesses and also their single serve coffee line because they believed it to be very profitable and to continue to become more profitable as the trend caught on to use single serve coffee machines
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WHAT IS CORPORATE STRATEGY? Although strategy has different definitions by various authors‚ to understand Corporate Strategy we begin by defining strategy. "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment‚ to meet the needs of markets and to fulfil stakeholder expectations” (Johnson‚ Scholes & Whittington‚ 2008). From the definition given by Johnson
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CSA 4 TESC 0432752 Oct 2009 1. What is adidas’s corporate strategy? Was there a common strategic approach used in managing the company’s lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring? “Adidas’s corporate strategy has been all along to improve on athletic footwear so as to give athletes an edge in competitive events (Sunset‚ 2009).” Their common approach has been to merge and divest other sporting goods
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