Sara Lee Corporation uses primarily a related diversification strategy. Note that questions 5 and 6 will be discussion only; no written answers required.
1. (Yair) Prepare a weighted industry attractiveness assessment similar to Table 8.1 on page 169. See Table 1 below as a template. Based on your table, what are your conclusions regarding the industries Sara Lee has chosen? For use with Question 1: Table 1 Industry Attractiveness Assessment for Sara Lee’s Businesses (Scale 1 = very low attractiveness, 5 = average attractiveness, 10 = very strong attractiveness) Attractiveness Measure | Weight | N.A.RetailMeats | N.A. Retail Bakery | N.A.FrozenDesserts | N.A. Single Serving Coffee | N.A. Food Service | Int’lCoffee | Int’lBakery | Market size and growth rate | 0.25 | 6/1.5 | 6/1.5 | 5/1.25 | 6/1.5 | 8/2 | 8/2 | 6/1.5 | Industry profitability | 0.15 | 7/1.05 | 7/1.05 | 7/1.05 | 7/1.05 | 5/0.75 | 6/0.9 | 4/0.6 | Intensity of competition | 0.20 | 7/1.4 | 7/1.4 | 7/1.4 | 7/1.4 | 6/1.2 | 7/1.4 | 6/1.2 | Emerging opportunities and threats | 0.10 | 5/0.5 | 5/0.5 | 5/0.5 | 5/0.5 | 6/0.6 | 6/0.6 | 6/0.6 | Product innovation | 0.25 | 5/1.25 | 5/1.25 | 5/1.25 | 5/1.25 | 8/2.00 | 5/1.25 | 5/1.25 | Social, political, environmental, factors | 0.05 | 5/0.25 | 5/0.25 | 5/0.25 | 5/0.25 | 8/0.40 | 5/0.25 | 5/0.25 | TOTALS | 1.0 | 5.95 | 5.95 | 5.70 | 5.95 | 6.95 | 6.40 | 5.40 |
2. (Mollie) Prepare a competitive position/business strength assessment for Sara Lee’s business units similar to Table 8.2 on page 171. See Table 2 below as a template. Based on your table, what are your conclusions regarding the companies Sara Lee owns? For use with question 2: Table 2 Competitive Position/Business Strength Calculations for Sara Lee’s Business Units (Scale 1 = very weak, 5 = average, 10 = very strong) Strength