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Business Proposal

In: Business and Management

Submitted By Islamrajib
Words 822
Pages 4
Company profile

Company name: Sara Lee Corporation

Company Address: 3500 Lacey Road

Downers Grove, IL 60515

United States

Phone: 630-598-6000

Fax: 630-598-8482


CEO/President: Brenda Barnes

Founding Year: 1939

Product line Breath: Sara Lee Corporation’s product line mainly consists of food, beverage and household products.

▪ Food & beverage (SLFB) division include Ball Park franks, Dean Sausage, Hillshire Farm deli meats, Sara Lee Breads & bakery products, Sara Lee frozen desserts and Senseo single serving coffeemakers and coffee pods. ▪ Household & body care products include Ambi pure air fresheners, Kiwi shoe care products & Sanex personal care products. Sara Lee also provides Foodservice to their customers.
Branches: Sara Lee operates more than 40 countries such as USA, Australia, Newzeland, Netherlands, Philippines & etc.

Key competitor: Hostess Brands, Inc; Kraft Foods Inc. (kft); Tyson Foods, Inc. (tsn)

Mission: To simply delight you……everyday.

Vision: To be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who make things happen.

Objective of the company:

|Financial Objective |Strategic Objective |
|To grow sales by 2 to 4 percent annually. |1. Boost up the market share via initiatives. |
|Increase $14 billion sales revenues in fiscal 2010. |2. Meet customer needs and please consumers through competitive |
| |pricing, innovative new products & brand building. |
|Increase operating profit margin at least 12%. |3. Winning maximum market share by product innovation and |
| |valuable unique food services. |
|Generate sufficient cash flows through retrenchment strategy to | |
|pay the company’s total debt. | |
|Return significant value to shareholders by delivering a healthy | |
|$370 million dividend payout. | |

SWOC Analysis

Strengths: The Sara Lee Corporation has spread its fare far and wide. It has operations in numerous countries, and it markets its products in nearly 200 nations on every corner of the globe. Its foreign sales account for about 42 percent of its annual revenue. It offers a broad line of consumer goods, whose leading brands include Superior coffee, Hanes, Playtex, Wonder bra, Champion, Kiwi shoe polish and Ambi Pur air freshening products. They have built their brands through imposing their strong identity on their series of different products. The organization is not afraid to take risks in order to improve its position in the market, evidenced by the retrenchment strategy that Brenda Barnes carried out.

Weaknesses: Having a diverse portfolio, Sara Lee was unable to leverage each and every one of their business lines and product categories, thus the need for retrenchment. The sheer complexity of the management task has ultimately defeated the best portfolio managers of Sara Lee. As a result of this, another weakness surfaced for the company, in the form of feeble financial performance during 2006 as compared to 2005 (Data monitor 2007). Likewise, their centralized operating structure remains a hindrance to their operations in a dynamic external environment which results to the company not being able to meet consumer demands in a personalized approach.

Opportunities: International expansion is always an opportunity to look out for at the Sara Lee Corporation , particularly in the Central and Eastern European markets , as well as in Asia , which are promising markets for company growth , as a direct contrast to the already inundated markets of USA and Western and Southern Europe. Also, since one of the stronger brands of the company is in their organic products segment , it presents an opportunity for the company since the said segment is one of the fastest emerging groups in the industry of food retailing .

Challenges: As with any consumer goods company , Sara Lee is susceptible to increasing oil prices which will affect the prices of the raw materials that they use for manufacturing their products , which means that they have to somehow transfer some of this cost increase to the final prices of their product offerings . Consumers may then tend to shift away from the products of the company into goods that are less expensive, thereby decreasing sales revenue for the company.


▪ Sara Lee needs to manage a best portfolio for increasing their profitability.

▪ They should diversify their operation structure because their centralized operating structure remains a hindrance to their operations in a dynamic external environment which results to the company not being able to meet consumer demands in a personalized approach.

▪ The company’s management should be established competitive pricing, innovative new products, and brand building capabilities which are essential to its efforts to please consumers and need strong operating excellence.

▪ Sara Lee needs to go for direct selling which can increase their profitability.

▪ The company’s market especially on North America and Europe based but they can spread their market in Asia by setting a plant.

▪ They need to minimize their production cost which will be helpful to set lower price and increasing consumer of the product.

By following these recommendations they can be one of the international brands of the world because they already have a strong position in the market.

Sara Lee Organogram


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