Sara Lee

* What is Sara Lee's corporate strategy? How has its retrenchment strategy changed the nature of its business lineup?

Sara Lee’s corporate strategy was to focus on their grocery and coffee lines. Their retrenchment plan consisted of selling eight of their businesses that they deemed less profitable. They believed that by focusing on their grocery and coffee lines that they would increase their overall profits and cut their losses for the areas they were invested in that looked less promising in the future.

* What is your assessment of the long-term attractiveness of the industries represented in Sara Lee Corp.'s business portfolio?

Sara Lee’s retail and food service industries seem to be the most attractive long-term investments. The company was very successful at selling lunchmeat (which thrives in a depressed economy since eating out daily usually is not an option). Their single serving coffee is another product that seemed to be a success. By implementing the retrenchment strategy the corporation assumed they would be able to focus more on these items and increase their profits.

* What is your assessment of the competitive strength of Sara Lee Corp.'s different business units?

Since Sara Lee’s focus in the food industry allowed them opportunities for skill transfer, cost sharing, and brand sharing. By doing so, this would allow the company to be able to meet the needs of the industry and come up with more competitive products; therefore increasing profitability.

* What does a 9-cell industry attractiveness/business strength matrix displaying Sara Lee's business units look like?

The 9-cell industry matrix assesses a company’s industry attractiveness and business strength. The higher the growth of the industry then the higher the company ranks on the y-axis. If the company is strong then it will be placed on the x-axis’ left side. . Sara Lee’s business, according to the 9-cell...