Case Study Sara Lee

Topics: Strategic management, Management, Profit Pages: 3 (799 words) Published: November 11, 2014
Case Study: Sara Lee

1. What is Sara Lee’s corporate strategy? How has its retrenchment strategy changed the nature of its business lineup? - new CEO wanted to transform Sara Lee into a more profitable company - a part of new strategy is the elimination of eight branded apparel business because of poor economic performance and decreasing sales  this leads to concentration of its financial and managerial resources into smaller and better positioned business segments.  goal: reaching of economies of scale by what it was internally known as Project Accelerate, a cost saving plan all across the company and productivity initiative focused on outsourcing, increase the supply chain efficiency and reduce overhead costs - After completion of its retrenchment strategy the company focused on increasing sales, market share and profitability of its key remaining brands -The organizational structure post-divestures became a six division organization built around product similarities, customer types, and geographic regions. - The core of the strategy: Original corporate strategy headed for the acquisition of new businesses and adding them to the portfolio  Change to non-core lower producing businesses, like mentioned before, and create a more focused company regarding their consumer goods lines like food, beverages and household products  The new strategy would lead us to the conclusion that Sara Lee is following now a Best-Cost Provider Hybrid Approach: 1. The differentiate their products and 2. Focus also on lower prices than rivals

- In addition the nature of their business line-up changed by concentrating now on a few product lines, specifically foods and beverages.

2. What is your assessment of the competitive strength of Sara Lee Corp.’s different business units? - To sum it up: The Project “Accelerate” is not fully represented by numbers in the financial report - the results that were reached by the end of the fiscal year 2010 are unclear  it does...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Sara Lee Case Study Essay
  • Sara Lee Essay
  • sara lee Essay
  • Essay about Sara Lee
  • Sara Lee Essay
  • Sara Lee Case Study Essay
  • Sara Lee Case study Essay
  • Case Prep Sara Lee Essay

Become a StudyMode Member

Sign Up - It's Free