Sara Lee Corp
Sara Lee is returning to its roots of food service where name recognition is the strongest. 2. What is your assessment of the long-term attractiveness of the industries represented in Sara Lee Corp. ’s business portfolio? The retail, foodservice, and industries represent the most attractive long-term. Sara lee has name recognition in the retail industry. Sales of these products will likely remain high as consumers purchase lunch meats and other foods rather than eating out because of the state of the economy. . What is your assessment of Competitive strength of Sara Lee Corp. ’s different business units? The narrowing of focus in the food industry and away from less fitting industries has allowed for value chain match-ups in the form of production technology, shipping logistics and customers. Opportunities for skills transfer, cost sharing and brand sharing include the production of bakery, retail and foodservice goods since many of these are similar or the same products.
Producing a large batch of the same product costs less than having to set up and run a separate product line. 4. What does a 9-cell industry attractiveness/business strength matrix displaying Sara Lee’s business units look like? The 9 cell industry strength matrix shows that there are opportunities for rapid growth and a good potential for winning a much stronger market position over time. 5. Does Sara Lee’s portfolio exhibit good strategic fit? What value-chain match-ups do you see?
What opportunities for skills transfer, cost sharing, or brand sharing do you see? Sara Lee’s portfolio does exhibit good strategic fit. Value-chain match up is Sara Lee’s food and retail division since the food service trends mirrored those in the grocery area. Their customers found that it was more cost effective and more sanitary to purchases pre slice meat than to purchase large amount of meat for restaurant employees. Opportunities of skills transfer, cost sharing, or brand sharing could be North American Fresh Bakery since they are doing well.
And the International Bakery could come join with them and improve to become more profitable. 6. What is your assessment of Sara Lee’s financial and operating performance in fiscal years 2008-2010, the period following the divestitures that were the core of Sara Lee’s retrenchment strategy? 7. What is your overall evaluation of Sara Lee’s retrenchment plan? What evidence and/or reasons support a conclusion that Sara Lee’s shareholders have or have not benefited from the company’s retrenchment strategy? 8.
What actions do you recommend that Sara Lee management take to improve the company’s performance and boost shareholder value? Your recommended actions must be supported with convincing, analysis-based arguments. I would say along the value chains of its related business gives a Sara Lee a path to achieve competitive advantage. Competitive advantage provides Sara Lee’s with a dependable basis for earning profits and a ROI. Converting the competitive advantage potential into greater profitability boosts shareholder value.