This short paper examines logistics as it pertains to the internal and external operations of an organization like Sara Lee Corporation. In doing this, one must examine the value chain model as it relates to Sara Lee and the company's ongoing operations. This allows decision-makers to have a better understanding of where the companies strengths and weaknesses lie. It allows decision-makers to see where value has been added or subtracted but also allows them to understand how to make operations better.

             Value Chain model.

             Value chain activities are not isolated from one another. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities. Sometimes, however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction in another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced. Through such improvements the firm has the potential to develop a competitive advantage. Such structure creates efficiency in the employee and high customer satisfaction in the buying experience (Burn 3). By restructuring value chain activities as a means to prioritize importance, this opens the door to many business relationships, changes values and sets the stage for new propositions and recreates the business models. .

             The notion behind value chain management is how value is added to the process of every day business. Will improved strategy better the environment of Sara Lee and if so what kind is needed? Better IT? It is believed that through new technologies they can focus less on outside distribution and production of product and instead have it all under one roof. From formulating the new baked good in the test tube to physical shipping of the product out to the customer, every step would be at Sara Lee.