Overall Corporate Strategy

Overall Corporate Strategy

This created separate corporate goals for the company but retail food business became the focus. Moreover, success in different markets led the company to further acquire businesses somewhat related and unrelated to its main portfolio. Hence, further diversifying in terms of products and geographical expansion of the company resulted in problems for managers, as they were unable to cope up with this rapid diversification. As a result, a retrenchment strategy was put into practice by the company to ensure that every business division is profitable. If not, then those failing businesses would be closed.This transforming strategy has given focus to front-line businesses, as these businesses have been the most profitable. Moreover, the food, beverages, and household businesses have good potential in terms of growth. Furthermore, the company is keen on making cost savings. To implement this, the company has introduced Project Accelerate, which includes cost savings techniques. Management believes that focusing on these promising businesses will save them loads of money, as these businesses are already well-positioned in the market and can increase the overall return on investment.Regarding the long-term attractiveness of industries in Sara Lee’s business portfolio, my analysis is that the retail industry and the food service industry have huge potential. Since Sara Lee has an established presence in the retail industry, it will definitely be able to increase its market share. The company is successful in supplying meat (retail) not only to consumers but also to foodservice customers. As a result, sales of meats have increased considerably. Moreover, the company is using its competitive advantage by using focusing on grocery items, which resulted in $100 million revenue to the company in 2008. Moreover, 10 out of 12 core products have recorded an increase in market share in 2010. However, between 2008 and 2010, the divisional sales of Sara Lee have grown faster than any other food processed company, as the market share of the company increased from 9.2% in 2009 to 12.3% in 2010.

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