Sara Lee Case 16

883 Words4 Pages
1. Sara Lee’s corporate strategy is to sell off the “weakest links” and to focus on improving a smaller range of its strongest business lines. The retrenchment strategy has allowed Sara Lee to completely exit certain product markets, moving toward its foundation as a food service company. Though several of the businesses that were divested did perform well, some were limping along and not related to the original product lines. Strategically, Sara Lee is returning to its roots of food service where name recognition is the strongest. 2. Of the remaining industries represented in Sara Lee’s business portfolio, I view the retail, foodservice, and beverage industries as being the most attractive. Sara Lee does have well-developed name recognition within the North American retail industry. While the economy is still low, sales of these retail products will likely remain high as consumers purchase lunch meats and other foods rather than eating out and frozen desserts rather than purchasing from a more expensive local bakery. Food service will also likely remain an attractive industry as most of the national chains listed as consumers in the case study are directed at value-conscious consumers who also desire quality. International beverage is a growing industry, as consumers move toward making their favorite coffee (and other) beverages at home rather than spending $5 a cup at their favorite chain. With the development of single serve coffee makers, this industry has grown even further and it no longer takes special skill to make a decent cup of coffee. The two remaining industries, North American and International bakeries seem less attractive, but these may pick up again down the road. Sara Lee bakery products do carry name recognition, but they also carry the price to go with it. Consumers who are trying to get more for their money are more likely to
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