Sara Lee Corporation, founded in 1939, hit its peak in revenues in 1998-1999 after almost 25 years of utilizing an acquisition strategy. It adopted so many different types of companies through the years that managing these broadly diversified operations became a struggle. In 2005, Brenda Barnes becomes president and CEO, and announces a plan to restructure the company. Sara Lee was to become a “more tightly focused food, beverage, and household products company” (p.385). How? By divesting weak performing business units and product categories, Sara Lee exits eight businesses deemed nonstrategic. Following the divesting of these nonstrategic businesses, Sara Lee focuses attention on increasing the sales, market shares, and profitability of its remaining businesses. By examining …show more content…
For example, in 2010 the company establishes itself as the number one distributor of coffee and food services to countries like the United States, Denmark, Netherlands, and Belgium. Throughout Europe, Sara Lee becomes the best selling single-serving coffeemakers, with 40 percent of that market. The sale of its products increases from 15,000 tons in the year 2004 to an approximate 28,000 tons in the year 2009. The company also launches a coffee maker model that grows to be the second best-selling coffeemaker in Europe. In the domestic market, the corporation encounters significant sale increases, for example, in the North American fresh bakery business. Sales increase from $91 million (2003) to a value of $2.1 billion (2008). The retrenchment plan had not been in place in 2003; however, after the plan becomes operational, Sara Lee becomes the best-selling brand of packaged bread sold in the entire United States. Despite the economic conditions that were at times experienced, the company had improved its operating income through pricing disciple and productivity gains from Project