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Case Study Sara Lee

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Case Study Sara Lee
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 not

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