...Overview Sara Lee Corporation has a vision “to be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who can make things happen.” The company’s vision can be summed up simply with their mission: “To simply delight you…everyday.” The company has been trying to achieve these goals since 1939 when the company began. Sara Lee employs a broad differentiation strategy, and has been diversifying since inception, mainly by acquisition. In 2005, the company, in an effort to raise profitability, began to divest eight of its business. The company’s goal was to increase sales to at least $14 billion, and increase operating profit to 12%. The idea was to focus efforts on the good, beverage and household product industry, which were seen as more profitable, and profits would increase. In 2008, Sara Lee launched an initiative called Project Accelerate. This program was designed to cut costs and increase productivity by focusing on overhead costs, streamlining the supply chain and outsourcing. It is expected to save of sum of $350 to $400 million by the end of 2012. By 2010, Project Accelerate had saved the company $180 million. The management team also decided to buyback $2.5 to $3 billion of common shares over a three year period. Despite their efforts, by the end of 2010, Sara Lee has revenues of just $10.8 billion and the operating profit margin was well below the target 12% at 8.5%. In an attempt to boost...
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...Company profile Company name: Sara Lee Corporation Company Address: 3500 Lacey Road Downers Grove, IL 60515 United States Phone: 630-598-6000 Fax: 630-598-8482 Website: http://www.saralee.com CEO/President: Brenda Barnes Founding Year: 1939 Product line Breath: Sara Lee Corporation’s product line mainly consists of food, beverage and household products. ▪ Food & beverage (SLFB) division include Ball Park franks, Dean Sausage, Hillshire Farm deli meats, Sara Lee Breads & bakery products, Sara Lee frozen desserts and Senseo single serving coffeemakers and coffee pods. ▪ Household & body care products include Ambi pure air fresheners, Kiwi shoe care products & Sanex personal care products. Sara Lee also provides Foodservice to their customers. Branches: Sara Lee operates more than 40 countries such as USA, Australia, Newzeland, Netherlands, Philippines & etc. Key competitor: Hostess Brands, Inc; Kraft Foods Inc. (kft); Tyson Foods, Inc. (tsn) Mission: To simply delight you……everyday. Vision: To be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who make things happen. Objective of the company: |Financial Objective |Strategic Objective ...
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...Analysis of Sara Lee Corp. | Retrenchment Strategy Review | | [Type the author name] | [Pick the date] | Introduction Sara Lee Corporation, then known as C.D. Kenny Company, was established in 1939 and had net sales of $24 million. By 1998-1999 the company had acquired over forty related and non-related businesses and had peaked at revenues of $20 billion. During the late 1990’s Sara Lee managers began to experience a difficult time in managing the company and increasing profits. This was due to the highly diversified and globally scattered operations that Sara Lee Corp. had developed into. (Gamble & Thomson, 2010) Over the next decade Sarah Lee would begin to transform the company into a streamlined, less globally and industrial diverse company; with a focus and commitment on superior products and customer service. The transformation would include divesting of businesses that contributed to approx. 37% of annual revenue and a spin-off of branded apparel into a new business, Hanesbrand, with the expectation that the retrenchment initiatives would generate $3 billion in net after-tax proceeds. With the introduction of a new CEO in 2000, Steven McMillan launched a new strategic initiative to narrow Sara Lee’s focus by divesting of unrelated business assets and companies that were not key to the organizations focused industries. In 2005 Brenda Barnes was appointed as President and CEO of Sara Lee Corp and with her appointment the announcement that Sara Lee Corp...
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...What is Sara Lee’s corporate strategy? How has its retrenchment strategy changed the nature of its business lineup? The strategy at Sara Lee is to expand globally, for Sara Lee acquiring new business models to expand into new product categories is how they plan to achieve this goal. For many years Sara Lee has successfully acquired both related and unrelated products, but will now streamline this a little more with the retrenchment strategy. The previous management team struggled with this broad product offering and the disseminated locations. The retrenchment strategy will allow Sara Lee to focus their resources on a smaller, tight knit beverage, food and household business. It will also allow for a change in the model from a wholesale distributor to a larger retail company. 2. What is your assessment of the long-term attractiveness of the industries represented in Sara Lee Corp.’s business portfolio? Sara Lee has the potential to grow. With a focus on core products that are their food company, they have dropped the dead weight of not so profitable products. The food industry will continue to grow within reason due to the requirement of us to have food to survive. It is beneficial to Sara Lee to have established brand power within the market segments as well. If Sara Lee stays active in the market segments and acquires only products that benefit them in the long term, they should keep profits up. 3. What is your assessment of the competitive strength of Sara Lee Corp...
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...BLLOctober 30, 2008Sara Lee CorporationSara Lee retrenched seven of its business units in 2006 in order to focus itsresources on its more profitable industries. The company’s goal is to boost its saleslines by at least 2 percent and increase its profit margin to 12% by 2010. Bydeveloping three competitive capabilities in each of its remaining business units,Sara Lee looks to improve its net profits within the next few years. Divested Businesses Analysis Sara Lee divested seven of its units, including: direct sales, U.S. retail coffee,European apparel, European snacks, and U.S. and European meats. The companyfollowed a strategy which allowed it to increase its corporate profits, since most of its business units it retrenched were unprofitable. By 2006, five business units hadnegative net profit margins and negative operating margins. Four of those unitshad negative margins of more than 10%, with different units seeing steady or sharpdeclines in revenues in profits since 2004. The only two profitable units were the direct selling unit and the Europeansnack lines. These two lines were seeing declining revenues and operating margins,except in 2006, when both lines increased their margins. Divesting the snackbusiness was a correct decision, since it was only producing net profits of $3 million,which would not help the business to increase its shareholders’ wealth. Plus, thecompany received a $70 million after-tax gain, more than 22 times the current netprofit. Selling its direct sales...
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...Sara Lee in 2011: Retrenchment strategy UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE SUBMITTED BY ALLIE JOSIAH TO: PROFESSOR JON GETTMAN DATE: 24TH APRIL 2013 Introduction Retrenchment Strategy Evaluation After Sara Lee's conservation, the association was ready to concentrate on its sustenance & drink, foodservice and worldwide organizations. Sara Lee's key goals for its remaining organizations were to keep tabs on client needs and managing perfection, while making an in number mark through wide developments and focused estimating. The association truly uses its retail meats, pushing comparative meats to its nourishment administration clients. Its meats have viewed expands in bargains and working salary, while productively making the most of improvements inside perishable things. The aforementioned advancements helped bargains more than $100 million, indeed, when its center items' bargains were even. The association holds a 20% piece of the overall industry in a developing industry of just about $10 billion. Sara Lee is the business sector pioneer in retail breads in North America, while nearly trailing Kraft inside the meat part. New bread bargains bounced more than $600 million inside 3 years, because of the power Sara Lee had with markets to build retire space for its features. Sara Lee furnished imaginative breads for its clients, while commanding the breakfast bread market. While holding a 14% piece of the pie in a $100 billion industry, Sara Lee is positioned...
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...Sara Lee retrenched seven of its business units in 2006 in order to focus its resources on its more profitable industries. The company’s goal is to boost its sales lines by at least 2 percent and increase its profit margin to 12% by 2010. By developing three competitive capabilities in each of its remaining business units, Sara Lee looks to improve its net profits within the next few years. Sara Lee, a 58-year-old company that was known as Consolidated Foods Corp. before it adopted its current name in 1985, operates in four industries: packaged meats and bakery items, coffee and grocery goods, household and body-care products and personal products. Its other familiar brands include Hanes, L'eggs and Sheer Energy hosiery; Playtex bras; Kiwi shoe polish; Brylcreem hair products; Jimmy Dean and Hilshire Farm packaged meats; and Champion apparel (Peltz 1). Divested Businesses Analysis Sara Lee divested seven of its units, including: direct sales, U.S. retail coffee, European apparel, European snacks, and U.S. and European meats. The company followed a strategy which allowed it to increase its corporate profits, since most of its business units it retrenched were unprofitable. By 2006, five business units had negative net profit margins and negative operating margins. Four of those units had negative margins of more than 10%, with different units seeing steady or sharp declines in revenues in profits since 2004. Contrary to what has become understood from how the past has evolved...
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...Bic Sté Bic SA 3.7 3.8 3.9 4.0 4.1 4.2 Nivea Beiersdorf AG 3.3 3.4 3.4 3.3 3.3 3.3 Edge Energizer Holdings Inc - - 0.7 0.7 0.6 0.6 Palmolive Colgate-Palmolive Co 0.7 0.7 0.7 0.6 0.6 0.6 Bozzano Hypermarcas SA - 0.3 0.3 0.4 0.4 0.4 Super-Max SuperMax Corp 0.3 0.3 0.3 0.4 0.4 0.3 Lord Lord Precision Industries SAE 0.3 0.3 0.3 0.3 0.3 0.3 Arko Evyap Sabun Yag Gliserin San ve Tic AS 0.3 0.3 0.3 0.3 0.3 0.3 L'Oréal Paris L'Oréal Groupe 0.2 0.2 0.3 0.3 0.3 0.3 Natura Natura Cosméticos SA 0.2 0.2 0.2 0.3 0.3 0.3 Avon Avon Products Inc 0.4 0.5 0.5 0.4 0.3 0.3 Flying Eagle Procter & Gamble Co, The 0.2 0.3 0.3 0.3 0.3 0.3 O Boticário Botica Comercial Farmacêutica Ltda 0.1 0.1 0.1 0.2 0.2 0.3 Derby Tokai Corp 0.4 0.4 0.4 0.4 0.3 0.3 Barbasol Perio Inc 0.2 0.2 0.2 0.2 0.2 0.2 K4-TETRA Kai Corp 0.2 0.2 0.2 0.2 0.2 0.2 Perma Sharp Procter & Gamble Co, The 0.2 0.2 0.2 0.2 0.2 0.2 Williams Unilever Group - - - 0.3 0.2 0.2 Mennen L'Oréal Groupe 0.2 0.2 0.2 0.2 0.2 0.2 Oriflame Oriflame Cosmetics SA 0.3 0.3 0.3 0.2 0.2 0.2 Shiseido Shiseido Co Ltd 0.2 0.2 0.2 0.2 0.2 0.2 Yves Rocher Yves Rocher SA 0.2 0.2 0.2 0.2 0.2 0.2 Minora Procter & Gamble Co, The 0.2 0.2 0.2 0.2 0.1 0.2 Success Kao Corp 0.1 0.2 0.2 0.2 0.2 0.2 Topaz Malhotra Shaving Products Pvt Ltd 0.2 0.2 0.2 0.2 0.2 0.1 King of Shaves KMI Brands Ltd 0.2 0.1 0.1 0.1 0.1 0.1 Ingram Middle East Chemical Co 0.1 0.1 0.1 0.1 0.1 0.1 Pace6 Dorco Co Ltd - - 0.1 0.1 0.1 0.1 Vonin LG Household...
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...Nestlé and Nespresso Based on the case study of Nestlé refines its arsenal in the luxury coffee war of the coffee war, this case talked about a subset of the coffee war that currently brewing in Western Europe between Nestlé, Sara Lee and Ethical Coffee. Nestlé is the incumbent in the market with a monopoly over its home coffee system with 1,700 patents. It has become one of the company's so-called "billionaire brands" with sales last year of $2.6bn. The Nespresso SA company was founded in Vevey, Switzerland in 1986 under the ownership of the Nestlé Group. Nespresso partnered with a Swiss manufacturer, Turmix, to produce and launch the first Nespresso coffee system in the office coffee market in Switzerland and Italy. Nestlé produced the first coffee capsules at its Swiss factory in Orbe. Nestlé traces the roots of Nespresso back to the belief that consumers wanted to have cafe‐style espresso experiences in the home and work place. Nespresso believed that the perfect combination of the highest quality coffee, water and air pressure was necessary to deliver a superior espresso. With this thinking the Nespresso system was born. Since 1986 Nespresso has expanded beyond its initial partnership with Turmix for production of its Nespresso machines. Today, Nespresso counts as partners such precision manufacturers as DeLonghi, Jura, Koenig, Krups, Miele and Siemens, all of whom provide a global distribution network of precision Nespresso machines. These machines, starting at €149...
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...QUESTION 1 a) After the acquisition, Company A will end up with 50,000 common shares of Company A, Company L will end up with 27,000 shares of Company A, and Company M will end up with 25,000 shares of Company A. Company A will have the majority of voting shares in a combination of two or more companies therefore, they are the acquirer. Company A is the group with the largest number of voting shares therefore they are the acquirer. ;lCompany A shareholders hold 50,000 shares Company L shareholders will hold 27,000 shares Company M shareholders will hold 25,000 shares 102,000 shares Company A shareholders own the largest group so Company A is the acquirer. b) Two options of accounting for share issue costs are: 1. Offset method. Under this method, share issue costs are treated as a reduction of the amount received from the sale of the related share capital. The rationale to support this method is that these are one-time costs that cannot be reasonably assigned to future periodic revenues and that the net cash received is the actual appropriate measure of capital raised. Therefore, under this method, share issue costs are debited to the share capital account. 2. Retained earnings method. Companies will charge share issue costs directly to retained earnings. Retained earnings are reduced as a result. This reduces common equity, but records the gross proceeds received from the sale of shares to the share capital account. c) The acquisition...
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...Sara Lee Equity Analysis and Valuation Valued at 1 April 1, 2007 Analysts: Todd L. Ehlers: todd.ehlers@ttu.edu Michael D. Estes: mikestes@sbcglobal.net Daniel W. Taylor: dtaylor1184@yahoo.com Joseph R. Torres: rhyno1112@sbcglobal.net Table of Contents Page Number Executive Summary……………………………………………………………………………………………… 2 Analysis Snapshot............................................................................................ 2 Company and Industry Overview…………………………………………………………………… 3 Accounting Analysis………………………………………………………………………………………. 3 Financial Ratio Analysis…………………………………………………………………………………. 4 Analysts Evaluations……………………………………………………………………………………… 4 Overview of Firm and Industry............................................................................... 5 Industry Overview and Analysis………………………………………………………………………….. 8 Rivalry Among Existing Firms………………………………………………………………………….8 Threat of New Entrants…………………………………………………………………………………. 15 Threat of Substitute Products………………………………………………………………………… 17 Bargaining Power of Buyers…………………………………………………………………………… 18 Bargaining Power of Suppliers……………………………………………………………………….. 20 Characterization of Industry……………………………………………………………………………20 Value Chain Analysis: Key Success Factors…………………………………………………………. 21 Competitive Advantage Analysis…………………………………………………………………………. 23 Cost Leadership……………………………………………………………………………………………. 24 Differentiation……………………………………………………………………………………………….27 Accounting Analysis………………………………………………………………………………………………...
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...Summary of JADS transactions over the past three months: Overall Portfolio Performance Month | Monthly Returns | September | 467,414.43 | October | 402,622.24 | November | 330,099.25 | Total | 1,200,135.92 | Over the past three (3) months, JADS group performed quite well in comparison with other groups. There were at least 2 members who made significant returns on investment. There were some stocks trades which resulted in high gains whilst there were others which incurred losses from the moment of purchase until they were sold. The group noticed that the trading environment relied heavily on both internal and external news surrounding the companies which traded on the stock market and as a result, constant monitoring of the financial news was required to keep adequately abreast in an effort to facilitate financial decisions in a timely manner. JADSjanella: * Best stock bought: Hewlett Packard(HPQ),although the stock price has been decreased from $27.94 to $25.39 this has been due to the fact that most of the leaders in the sector gave up their gains for the thanksgiving holiday. * Worst stock bought: The worst stock was Texas Instrument (TXN), because it fluctuates frequently as a result it had to be monitored frequently. The stock fell drastically over the past few weeks when compared to the price it was about one month ago. What I have learnt overall: 1. to make money on the stock market you have to monitor the market regularly 2. read...
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...Jingwa Pan Introduction US corporations has been using loopholes to minimize their tax reported annually, however, recently president Obama have claimed that some actions should be taken to avoid those corporations taking advantages of these loopholes in tax regulations which have helped them avoid tax duties. Corporations’ taking advantage of such tax duties can cause unexpected results. Other hardworking corporations and individuals may have sense of unfair. This report will analyze the problems that exists about those corporations escape tax duties using the loopholes of tax regulations as well as an explanation on President Obama’s new claim about tax returns. Problem statement Inversions are transactions in which a U.S. company merges with a foreign company overseas to lower its tax burden.(citation 1) So far, tax avoiding corporate inversions lowers companies’ tax bills by allowing them to redomicile overseas even though their core operations and management usually remain in the United States. (citation 2) This is a loophole in tax regulation that corporations will take advantage of it by reincorporate overseas while lawmakers haven’t notice about it. A lot of investors and entrepreneurs has been looking for a good way to reduce the tax duties as much as possible. Since the U.S. has one of the world’s highest top rates which is 35%, although effective rates everywhere can be substantially lower depending on tax breaks and other incentives, the U.S. also is one of the...
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...582 MAINE LAW REVIEW [Vol. 65:2 A NATIONAL “NATURAL” STANDARD FOR FOOD LABELING Nicole E. Negowetti * I. I NTRODUCTION What do Juicy Juice fruit punch, SunChips, Nature Valley granola bars, and Skinny Girl Margaritas have in common? These products are all branded with the term “natural.” From canned vegetables to cereals to soft drinks, the term “natural” has become one of the most common claims on foods, drugs, dietary supplements, and personal care products. The word “natural” on a label or in advertising brings to mind nature, and things that are pure, clean, healthy, 1 free of artificial additives, 2 and therefore safe, harmless, and beneficial to overall health. In 2011, “all-natural” was the second-most-used claim on new American food products. 3 The food industry’s marketing of such products has been extremely successful. In 2009, sales of products with a “natural” claim reached $22 billion, 4 and a recent study found that the “natural” claim is the most popular among consumers. When asked “which is the best description to read on a food label,” 31% of consumers selected “100% natural” and 25% selected “all natural ingredients.” 5 Although both the Food and Drug Administration (FDA) and U.S. Department of Agriculture (USDA) are statutorily mand ated to protect consumer interests by prohibiting false and misleading labeling, both agencies have refused to formally * Assistant Professor of Law, Valparaiso University Law School. I thank Whitney...
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...Margaret Corbin BY: Gwyndolynn Corbin Margaret Corbin was a hero of the American Revolution, she was the first woman in combat during a battle for independence. She was a strong, brave independent woman. I Gwyndolynn Corbin is related to this woman she would be my great great great great etc Grandmother. Margaret Corbin “maiden name Cochran” was born in November 12, 1751 in Pennsylvania. She had one brother named John Cochran. Her parents were Sara Cochran and Robert Cochran. They lived in Franklin County Pennsylvania. Margaret Corbin lived a simple life at first growing up on a farm. Than hardship struck in 1756 when she was 5 years old, her and her older brother went to visit her uncle. While they were gone her mother and father were attack by an...
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