Premium Essay

Sara Lee Case Study

In: Business and Management

Submitted By trishhh
Words 1264
Pages 6
Background
Charlie Lubin an entrepreneur named his line of cheesecakes after his daughter, Sara Lee. In the 1950s, Consolidated Foods bought out his company, where he continued to be the senior executive for many years. In the 1980s, Consolidated Foods changed its name to Sara lee. Sara Lee started out as a small wholesale distributor of sugar, coffee, and tea, then it acquire a food processing, packaging, and distribution, and then retail food business Sara Lee Corporation is now a global manufacturer and marketer of brand-name products for consumers globally focused primarily on the meats, bakery, beverage and household products categories. Its major brands include Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Senseo and of course its namesake, Sara Lee. The corporation has five segments, namely: North American Retail, North American Fresh Bakery, North American Foodservice, International Beverage and International Bakery. Just as any other organization, Sara Lee has a vision, mission, and values. Their vision is 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. Their mission is “To simply delight you…every day.” Values; Act with Integrity, Use Imagination, Be Inclusive, Work as a Team, Have Passion to excel. *INTEGRITY, IMAGINATION, INCLUSIVE, TEAM, PASSION* (www.saralee.com) This paper’s discussion that includes the corporate strategy and how its retrenchment strategy changed the nature of its business lineup, the evaluation of the retrenchment plan, and recommended actions to improve the company’s performance and boost shareholder value.

Strategy and Retrenchment
According to our text, “A company’s strategy consists of the competitive moves and business approaches that managers employ to attract and please customers, compete...

Similar Documents

Free Essay

Sara Lee Case Study

...Over the years, Sara Lee was broadly known for their catchy slogan of “Everybody doesn’t like something, but nobody doesn’t like Sara Lee,” which mainly pertained to the companies bakery group; but Sara Lee Corporation was so much more. The Sara Lee Bakery Group was a division of a larger Sara Lee Corporation which had product lines including such categories as packaged meats, coffee, tea, underwear, intimate apparel, body care, air care, shoe care and air fresheners. In 2006, the slogan was changed to “the joy of eating” to go along with a major transformation of the company into a smaller number of core businesses which focused more tightly on food, beverage, and household products. In February 2005, Brenda Barnes, Sara Lee’s newly appointed president and CEO, announced a strategic plan to transform Sara Lee into a more tightly focused food, beverage, and household products company. The centerpiece of Barnes’s transformation plan was the divestiture of weak-performing business units and product categories accounting for $8.2 billion in sales - 40% of Sara Lee’s annual revenue. Barnes believed that Sara Lee could benefit from concentrating its financial and managerial resources on a smaller number of business segments where market prospects were promising and Sara Lee’s brands were well positioned. As the first phase of Barnes’s transformation plan, Sara Lee was to exit eight businesses: Direct selling, U.S. retail coffee, European apparel, European nuts and snacks,......

Words: 1087 - Pages: 5

Free Essay

Sara Lee Case Study Analysis

...Sara Lee in 2011: Retrenchment strategy UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE SUBMITTED BY ALLIE JOSIAH TO: PROFESSOR JON GETTMAN DATE: 24TH APRIL 2013 Introduction Retrenchment Strategy Evaluation After Sara Lee's conservation, the association was ready to concentrate on its sustenance & drink, foodservice and worldwide organizations. Sara Lee's key goals for its remaining organizations were to keep tabs on client needs and managing perfection, while making an in number mark through wide developments and focused estimating. The association truly uses its retail meats, pushing comparative meats to its nourishment administration clients. Its meats have viewed expands in bargains and working salary, while productively making the most of improvements inside perishable things. The aforementioned advancements helped bargains more than $100 million, indeed, when its center items' bargains were even. The association holds a 20% piece of the overall industry in a developing industry of just about $10 billion. Sara Lee is the business sector pioneer in retail breads in North America, while nearly trailing Kraft inside the meat part. New bread bargains bounced more than $600 million inside 3 years, because of the power Sara Lee had with markets to build retire space for its features. Sara Lee furnished imaginative breads for its clients, while commanding the breakfast bread market. While holding a 14% piece of the pie in a $100 billion industry, Sara Lee is......

Words: 1817 - Pages: 8

Premium Essay

Sara Lee

...Sara Lee’s Retrenchment Strategy Case Study Vinh Tran Strategic Management April 28, 2013 Sara Garski Southwestern College Professional Studies Introduction Sara Lee started out as a small company in wholesale distribution that gradually grew to a series of related and unrelated businesses. For the next 40 years, the company expanded to food processing, retail food, and household products to more than 40 countries. Their broad differentiation strategy and geographically spread operations has management struggling to operate efficiently. Even with the vast company’s portfolio, it did not help with building shareholder value. With the declining profits worldwide, Sara Lee’s retrenchment initiatives is divest eight of its business units to raise profitability through operating profit and sales. Strategies Sara Lee’s retrenchment strategy is required in order to focus its resources on more profitable industries such as the beverage, food, and household products company. Their plan on separating themselves from weak performing business units and product categories will put the company in a better financial position. Management will be able to focus their resources to boost their profitability, sales, and market shares on the remaining products. The spin-off of Hanes brands was a smart move even though the operating profit margin was still a moneymaker. The cash payment needed to eliminate the note payable to Hanes brand from Sara Lee and it did......

Words: 1094 - Pages: 5

Premium Essay

Sara Lee Corp

...Sara Lee Corporation ANALYSIS OF THE CASE Sara Lee retrenched seven of its business units in 2006 in order to focus its resources on its more profitable industries. The company’s goal is to boost its sales lines by at least 2 percent and increase its profit margin to 12% by 2010. By developing three competitive capabilities in each of its remaining business units, Sara Lee looks to improve its net profits within the next few years. Summary of the case       This case study provides an evaluation of Sara Lee Corporation and particularly its operations of product lines available through the Wal-Mart stores.   To begin with, an effective SWOT analysis of the company was conducted where strengths and opportunities are identified while addressing possible threats and improving its weaknesses to avoid giving the competition an aggressive advantage.   Marketing requires effective identification of issues as a key factor in devising the best methods of addressing them.   Therefore, Kirk Nelson identifies the Basic Hipster style to be a major problem in the market because it was not doing well.   Effective establishment of the best possible solution is therefore critical to maintain the corporation’s market share for the Wal-Mart Account.   This analysis generates key alternatives that Kirk Nelson as the Sara Lee Wal-Mart Girl’s Panty analyst should consider in getting out of the current deadlock.   History       Sara Lee Corporation is a fortune 500 company listed on...

Words: 3785 - Pages: 16

Premium Essay

Sara Lee

...Sara Lee’s Retrenchment Strategy Case Study Vinh Tran Strategic Management April 28, 2013 Sara Garski Southwestern College Professional Studies Introduction Sara Lee started out as a small company in wholesale distribution that gradually grew to a series of related and unrelated businesses. For the next 40 years, the company expanded to food processing, retail food, and household products to more than 40 countries. Their broad differentiation strategy and geographically spread operations has management struggling to operate efficiently. Even with the vast company’s portfolio, it did not help with building shareholder value. With the declining profits worldwide, Sara Lee’s retrenchment initiatives is divest eight of its business units to raise profitability through operating profit and sales. Strategies Sara Lee’s retrenchment strategy is required in order to focus its resources on more profitable industries such as the beverage, food, and household products company. Their plan on separating themselves from weak performing business units and product categories will put the company in a better financial position. Management will be able to focus their resources to boost their profitability, sales, and market shares on the remaining products. The spin-off of Hanes brands was a smart move even though the operating profit margin was still a moneymaker. The cash payment needed to eliminate the note payable to Hanes brand from Sara Lee and it did......

Words: 1094 - Pages: 5

Free Essay

Sara Lee Bakery Group

...Sara Lee Bakery Group Case Page |1 Sara Lee Bakery Group Case Study Authored by: Laurie Blackston-Bray Robert Morris University MIS510 Information Systems Management Dr. Ona Johnson Presented on: May 14 2013 Sara Lee Bakery Group Case Page |2 Company Overview Sara Lee Bakery Group, Inc. (SLBG) functions through two principal business segments: Bakery Products and Refrigerated Dough Products. The company's Bakery Products business manufactures and distributes fresh-baked goods, such as baked breads, buns, rolls, bagels, cookies, snacks, and cakes in the United States and fresh-baked sliced bread, snack cakes, sweet buns, and brioche in Spain and Portugal. The company's Refrigerated Dough Products business manufactures different canned refrigerated dough products in the United States, including biscuits, specialty biscuits, dinner rolls, danishes, cookie dough, crescent rolls, breadsticks, cinnamon rolls, pizza crusts, pie crusts, and toaster pastries. Its Refrigerated Dough Products business also manufactures and sells refrigerated dough products in Europe, primarily in France and Germany, and makes packaged rolled dough, which is used to prepare foods such as quiches, tarts, and pies. The company operates 54 direct-store-delivery bakeries and seven diversifiedproduct specialty bakeries. Sara Lee Bakery Group, Inc. was formerly known as The Earthgrains Company and changed its name in July 2001. The company was founded in 1925 and is based in Saint......

Words: 1536 - Pages: 7

Free Essay

Apparel

...Case Study: Logistics & Distribution Printronix Solution Saved Sara Lee Intimate Apparel A Quarter Million Dollars in Fees Sara Lee Intimate Apparel, headquartered in Winston-Salem, N.C., has a 70-year tradition of products with fashion, fit, comfort, quality and design. Its founders, Sam and Sara Stein, launched its Bali business in the mid-1920s by combining new raw materials with changing fashion trends accentuating shape. Playtex was developed by a Dupont Chemist after WWII. Sara Lee Intimate Apparel was formed in the late 1980s from the purchase of these two companies. The company’s flagship Bali and Playtex brands, as well as newer Wonderbra and Barely There lines comprise a powerful department and specialty store presence, while its Hanes Her Way, Just My Size and Lovable brands combine to bring superior styling to the mass merchandise market. A sub-division of Sara Lee Branded Apparel, Sara Lee Intimate Apparel manufactures and distributes more than 70 percent of the intimate apparel sold retail and private label in the United States. Because of the differing distribution requirements in the retail markets, the company operates two separate facilities in Kings Mountain, N.C. Combined, the company distributes more than 720,000 garments a day, via 36,000 outbound cartons, to thousands of customer locations, including JC Penney, Kohl’s, Macy’s, Mervyn’s, Sears and Wal-Mart. Bar code labels are affixed to each garment and carton the company ships. Sara......

Words: 1195 - Pages: 5

Premium Essay

Intel

...Nestlé and Nespresso Based on the case study of Nestlé refines its arsenal in the luxury coffee war of the coffee war, this case talked about a subset of the coffee war that currently brewing in Western Europe between Nestlé, Sara Lee and Ethical Coffee. Nestlé is the incumbent in the market with a monopoly over its home coffee system with 1,700 patents. It has become one of the company's so-called "billionaire brands" with sales last year of $2.6bn. The Nespresso SA company was founded in Vevey, Switzerland in 1986 under the ownership of the Nestlé Group. Nespresso partnered with a Swiss manufacturer, Turmix, to produce and launch the first Nespresso coffee system in the office coffee market in Switzerland and Italy. Nestlé produced the first coffee capsules at its Swiss factory in Orbe. Nestlé traces the roots of Nespresso back to the belief that consumers wanted to have cafe‐style espresso experiences in the home and work place. Nespresso believed that the perfect combination of the highest quality coffee, water and air pressure was necessary to deliver a superior espresso. With this thinking the Nespresso system was born. Since 1986 Nespresso has expanded beyond its initial partnership with Turmix for production of its Nespresso machines. Today, Nespresso counts as partners such precision manufacturers as DeLonghi, Jura, Koenig, Krups, Miele and Siemens, all of whom provide a global distribution network of precision Nespresso machines. These machines, starting at......

Words: 3780 - Pages: 16

Premium Essay

Coach Inc.

...Coach Inc. in 2012: A Case Study Analysis Wehneh Tidoe Wilmington University Dr. Hoehn Coach was founded in 1941 by Miles Cahn who was a leather artisan. The handbags that Cahn and his family created separated them from the competition because these bags were resistant from wear and tear. The company grew a following based on the bags classic styling. And time progressed; the company was able to grow due the prices of the goods being about 50 percent lower than other luxurious brands. The company was also established with large retailers as well as their own company store (Eastburn, 2013). Problem Statement Coach was sold to a diversified food and consumer goods producer named Sara Lee after 44 years of family management. Although the company maintained its strong reputation with its consumers, after a while the consumer’s preference began changing. The company’s classic style did not appeal to those who were looking for the Italian or French look. Since Coach had already developed a fan base once the company was purchase by Sara Lee, the company did nothing to change the products or pricing. Once other designer brands emerged, Coach’s best performing stores rapidly declined in sales. Strategic Analysis Coach began building its strengths years after it was purchased by Sara Lee in 1996. Reed Krakoff was hired as Coach’s new creative director. Krakoff’s first plan of action was to produce new products based on market research. The......

Words: 880 - Pages: 4

Free Essay

Ese Mousetrap

...RECKITT BENCKISER & MDI - GURGAON PRESENT Cherry Blossom Shoe Polish Case Analysis Contest Reckitt Benckiser India Ltd: Cherry Blossom Shoe Polish Introduction In June 2006, the Brand Manager of Cherry Blossom, looked back with some degree of satisfaction to the positive uptrend in the last couple of years to various initiatives taken by the brand team to recoup some of the lost ground. Despite his pre-occupation with the "100 shining years" celebrations going on for this life-touching brand that had for long added an early morning glimmer to shoes, he was keenly working towards finalising the strategic shifts in the marketing strategy of the brand to take it to the next orbit. The journey of Cherry Blossom (Cherry) as a brand had begun a hundred years ago and had seen many ups and downs. For a long time till mid 1990's, it was the dominant category leader, with virtually no competition, and a market share of about 75%*. Market environment changed when Kiwi emerged actively as one of Sara Lee India's core brand. The changing shoe care habits of consumers and growing popularity of new shoe types further changed the market environment for Cherry. By the end of 1990's, Cherry was losing its shine. The brand had lost its market share steeply from 1999 onwards, and by 2002 it fell to a low of 61% - a drop of 12% in market share. A series of measures helped Cherry to fight this serious erosion to its leadership position, and the slide was arrested in 2003.......

Words: 4269 - Pages: 18

Premium Essay

Marketing

...Dear All, I have as per promise published this case study. It was picked from Free case study section of ICMR – Center for Management Research. Please make the maximum use of this resource by discussing this case study. Leave your analysis and views as comments in the comments section at the bottom of the page. Happy Learning…   ‘ALL OUT’ – MARKETING A MOSQUITO REPELLANT “It is one of the contenders to become the Hindustan Lever Ltd. (HLL) of the next century.” - Shunu Sen, Marketing Expert & CEO, Quadra Advisory, commenting on Karamchand Appliances Pvt. Ltd., in 2000. Traditional methods Burning of incense sticks, fumigation using Neem leaves, use of  mosquito nets Mosquito repellants Creams Applied directly on the body, the creams contain chemicals, which repel the mosquitoes – not very popular, as the creams are rather sticky and inconvenient to use. Coils Made by mixing chemicals with substances like coconut shell powder, sawdust, color, perfumes and synthetic or natural gums; the coils burn slowly, releasing the chemicals. Mats Have a composition similar to coils; the mats are placed in a small heater, which is plugged into an electrical socket. When the mat is heated, the chemicals are released. Sprays Chemicals in liquid form, sprayed in the area infested with mosquitoes – not very popular because of the strong smell of the chemicals. Vaporizers Use small containers of a chemical solution, which is heated gently in an......

Words: 6580 - Pages: 27

Premium Essay

Coach Study Case Analysis

...capability Outerwear: 2% of sales Monthly product launches Business cases/luggage: 1% of sales Licensing agreements with other companies to make Coach-branded items Royalties: 1%; 2%; 1% of sales Diverse product line Regular customer service training programs Special Request service Customer loyalty International locations Opportunities Threats Increase online sales Counterfeiting Global expansion plan Consumers: knowingly buying counterfeits Consumers: NOT knowingly buying counterfeits Competition Economic recessions After examining the SWOT Analysis, it is obvious that Coach’s strengths far outweigh their weaknesses. Miles Cahn founded Coach in 1941. Cahn was a leather artisan who began producing ladies’ handbags with the aid of his family in their SoHo loft in New York City. For a family owned company to remain in business for 44 years, it is evident that Chan created a quality product that endured the test of time. When Cahn sold Coach to Sara Lee, she took the company to the next level of greatness. Granted, her first triumph took place over a decade later when she promoted Lew Frankfort to the head of the handbag division. Regardless, Cahn would be proud of Lee’s success with the company he created. Cahn is credited for the first three strengths listed: 1) Brand image, 2) Quality made products, and 3) Setting prices about 50% lower than those of more luxurious brands. When Lee acquired Coach, she maintained Cahn’s strategy and......

Words: 956 - Pages: 4

Premium Essay

Market

...LOVELY PROFESSIONAL UNIVERSITY INSTRUCTION PLAN (for Lectures) Term: 3rd Course No. COM604 Course Title: STRATEGIC MANAGEMENT L: 4 T: 1 P: 0 Textbook: 1. Hunger J. D. and Wheelen T. L. , Strategic Management & Business Policy, Pearson Education, New Delhi, 8th Ed., 2006 Other Specific Books: 2. Kazmi, A. Business Policy and Strategic Management, Tata McGraw Hill, New Delhi, 2nd Ed. 2007 3. Jauch, R. Lawrence, R. Gupta and W.F.Glueck, Business Policy and Strategic Management, Frank Bros.&Co., 7th Ed.,2007 Other readings: |S. No |Journal articles as compulsory reading | |. |Camillus, J. C. Strategy as a wicked problem, Harvard Business Review, May 2008 | | |Hirotaka, The contradictions that Drive Toyota’s success, Harvard Business Review, June, 2008 | | |C.K. Prahalad’s Plan: India @75, Business Today, August 24, 2008 | | |McAfee, A. and Brynjolfsson, E., Investing in IT that makes a competitive Difference, Harvard Business Review, July-August, 2008, PP.98-107 | | |Collis, D.J. and Montgomery, C.A., Competing on Resource, Harvard Business Review, July-August, 1995 ...

Words: 2548 - Pages: 11

Premium Essay

Programmer

...Issue 50 (2012), pp. 62-75 © EuroJournals Publishing, Inc. 2012 http://www.eurojournals.com/ajsr.htm Review Study: Business Intelligence Concepts and Approaches Saeed Rouhani Islamic Azad University, Firoozkooh Branch Department of Industrial Engineering, Firoozkooh, Iran E-mail: SRouhani@iust.ac.ir Tel: +98-912-2034980 Sara Asgari MehrAlborz University, Tehran, Iran E-mail: sara.asgary29@gmail.com Seyed Vahid Mirhosseini MehrAlborz University, Tehran, Iran E-mail: vmirhosseini@gmail.com Abstract In today’s challenging business environment, it is a vital for organization to access useful information and knowledge. Business Intelligence (BI) is an umbrella concept for tools, techniques and solutions that helps managers to understand business situation. And BI tools can support informational knowledge needs of organizations. With respect to increasing trend of BI researches in BI concepts and applications, in this paper, recent researches and papers of academic journals in this field is systematically review to classify and prioritize the concepts and approaches of business intelligence. Consequently researches was classified in three, managerial, technical and system enables approaches to BI, and specification of each approach and future research quid was described. Keywords: Business Intelligence; Enterprise Intelligence Approaches Systems; Review Study; Business 1. Introduction Today, in the rapidly changing environment, need to correct and......

Words: 6923 - Pages: 28

Free Essay

Godrej

...Evolution of a Family Business - Godrej Group Case Study Submitted by (Section C- Group 4): Abhishek Kumar(PGP11/129) Balaji Manohar(PGP11/140) Karthik Kumar(PGP11/151) Prashant Gangwal (PGP11/162) Santosh(PGP11/173) Supriya(PGP11/184) Group Assignment – Organizational Behavior II – IIMK Introduction ........................................................................................................................................................................ 4 Executive Summary ......................................................................................................................................................... 5 Overview of the Godrej Group ................................................................................................................................... 7 Organizational Structure .............................................................................................................................................. 7 Godrej Group Companies ........................................................................................................................................ 8 Competition .................................................................................................................................................................... 9 Family Business Model .......................................................................................................................................... 10 Key......

Words: 8874 - Pages: 36