Sara Lee Analysis

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Sara Lee Corporation 2011 Analysis Consideration for Recommendations Jayme A. Knapp Benedictine University Abstract Sara Lee Corporation is a producer and innovator of fine food products such as coffee, fresh and frozen breads, bakery items, beverages and meats. The company operates 9 bakery types, 13 meat types and 32 beverage types under 25 uniquely marketed and diversified brand names. Overall Sara Lee Corporation has a long term strategy to grow profit margins, maintain brand awareness and be a leader in product innovation. Sara Lee’s current strategy includes a focus on its grocery groups, fresh baked goods, moving the commodity items into branded items and continuing to improve the relationships it has with its customers. Even though the U.S. economy has been suffering greatly since mid 2000, Sara Lee has maintained market share in the core products that included foodservice, beverages, bakery items, body care, and household items. A current split of the company has been noticed and that may indicate a possible sale of its international business, leaving open rivals to finance an acquisition. The brand mix of similar products – unique brands – gives Sara Lee a strong competitive advantage over the competition with product effectiveness that reduces over all costs and drives up margins. Using a cross-mix strategy would remove the potential selling of one division or other, which would reassure investors that the company has a long-term strategy to maintain both the North America and International operations. The company is in a great cash position to develop long term strategies by using innovation, private labeling and marketing to generate new growth among other retail locations – reducing the overall dependency on Wal-Mart. Sara Lee was founded in 1939 with a beginning plan to provide distribution of consumer goods, specifically
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