Sara Lee's International Domination

            Sara Lee boasts an international presence in 58 countries, with branded products in nearly 200 nations and over 137,000 employees worldwide. In my opinion, this shows that Sara Lee is a global player, prepared for the challenges that globalization and a global economy imposes on 21st century businesses. The most important strength, in this sense, may be the impressive dimensions of Sara Lee's international presence, as well as the synergies between different units of production or sales that operate in different countries that may arise in this case.

             A second important strength is the size and productivity of the company's brand portfolio. The food and beverage brands, the branded apparel or the body care brands have been intensively marketed so that they have almost become a separated brand in themselves. .

             In terms of weaknesses, we should refer to the financial situation of the company. As a five-year report would show, despite a consistent ascending trend in net sales over the period from 2001 to 2005 (a growth by 18.8 %), the operating income almost halved throughout the same period (decreased from 1,979 million in 2001 to 1,120 million in 2005, around 76.7 % less). This is worrying, because it comes to show a net increase in costs of goods sold that overpasses any prospective future growth. It may also be the case that Sara Lee's constant expansion is no longer profitable in some areas of the world.

             In terms of threats, with an easy access to the market, especially the food and beverages market, we may take into consideration the threat of new entrants, as well as the threat of substitute products (referring to Porter's 5 forces model) are to be taken into consideration by the company, especially on a global market where the company is evolving. .

             Going back to recommendations on the company's strategy, we need to combine the conclusions from the strengths, weaknesses and threats previously presented: the company is benefiting from a strong portfolio of brands and an international presence.

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