Hi, I am looking for someone to write an article on strategic management the of sara lee corporation Paper must be at least 2250 words. Please, no plagiarized work! The plan of Brenda Barnes was based on the ‘divestiture of weak-performing business units and product categories accounting for $8.2 billion in sales’ (case study). The specific strategic decision could be characterized at a first level as risky – the business units involved in the plan represent 40% of the firm’s revenues. In this context, the firm’s profitability would be reduced. however, Barnes believed that the specific initiative would lead shortly to the increase of the firm’s profitability. In accordance with the above, the retrenchment strategy suggested by Barnes has changed the firm’s existing line up. Up to the introduction of Barne’s strategic plan the firm was based on the simultaneous promotion of various products/ services but also the continuous expansion of the firm’s operational activities through the acquisition of competitors. Barne’s strategic plan has led to the limitation of expansion of the firm’s activities but also to the increase of its strength regarding specific products/ services – those with strong brand names. The effectiveness of the specific strategy will be analyzed further on taking into consideration the market conditions and the position/ power of competitors.
The products offered by Sara Lee represent a wide range of industries. At its beginning (1939) the firm was related to the distribution of specific products (sugar, coffee, tea). Gradually, the firm’s activities were expanded to many different industries (selling of meat, canned products, vacuum cleaners, personal care products, household products, athletic wear, grocery, bakery products, coffee brands, and so on). The long – term attractiveness of these brands cannot be guaranteed. because all these products need to be equally promoted, the investment of specific funds on the firm’s marketing is required. however, the pay-back of these funds can be doubted. Not all these products have high profitability. The specific risk is minimized through the strategic plan of Barnes. through this plan, only products that have strong brand names are going to be supported and promoted. the expenses on the marketing of the rest products of the firm are going to be reduced. Under these terms, the risk of limitation of the attractiveness of part of the firm’s products – a risk that could be extremely high – is going to be limited – if not eliminated.
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