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  • What Is Sara Lee's Corporate Strategy? How Has Its Retrenchment Strategy Changed The Nature of Its Business Lineup?

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    Sara Lee's original corporate strategy involved acquiring many new businesses over 40 years to expand geographically and into new categories, but managing such a diversified portfolio became difficult. Sara Lee then implemented a retrenchment strategy, selling off unrelated businesses to focus on food, beverages, and household products where its brands were strong. It also launched Project Accelerate to outsource functions, improve supply chain efficiency, and reduce overhead to cut costs and increase profits with a smaller, more focused business lineup.

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    Sara Lee's original corporate strategy involved acquiring many new businesses over 40 years to expand geographically and into new categories, but managing such a diversified portfolio became difficult. Sara Lee then implemented a retrenchment strategy, selling off unrelated businesses to focus on food, beverages, and household products where its brands were strong. It also launched Project Accelerate to outsource functions, improve supply chain efficiency, and reduce overhead to cut costs and increase profits with a smaller, more focused business lineup.

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    25 views1 page

    What Is Sara Lee's Corporate Strategy? How Has Its Retrenchment Strategy Changed The Nature of Its Business Lineup?

    Uploaded by

    jrfx448
    Sara Lee's original corporate strategy involved acquiring many new businesses over 40 years to expand geographically and into new categories, but managing such a diversified portfolio became difficult. Sara Lee then implemented a retrenchment strategy, selling off unrelated businesses to focus on food, beverages, and household products where its brands were strong. It also launched Project Accelerate to outsource functions, improve supply chain efficiency, and reduce overhead to cut costs and increase profits with a smaller, more focused business lineup.

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    1. What is Sara Lees corporate strategy?

    How has its retrenchment strategy changed the nature of its business lineup? At the beginning the company corporate strategy was implementing acquisition strategies to expanding the companys geographic coverage and into new business categories. The company started as a small wholesale distributor of sugar, coffee, and tea, then it acquire a food processing, packaging, and distribution, and then retail food business. For over 40 years the company had acquired a series of related and unrelated business. Over this course of time, management struggled to manage the companys broadly diversified and geographically scattered operations. With the retrenchment strategy, Sara Lee Corporation is able to transform it into a more tightly focused food, beverage, and household products company. Management believed concentrating its financial and managerial resources on a smaller number of business segments in which market prospects were promising and Sara Lees brands were well positioned would help the company save cost and more profitable. The company had also implement an outsourcing strategy known as Project Accelerate. It a company-wide cost saving and productivity that focused on outsourcing, supply chain efficiencies, and overhead reduction.

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