Case 16 Sara Lee Corp in 2011 Has Its Retrenchment Strategy Been Successful

Case 16 Sara Lee Corp in 2011 Has Its Retrenchment Strategy Been Successful

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Case 16  Sara Lee Corp in 2011  Has Its Retrenchment Strategy Been Successful Sara Lee Corp. in 2011: Has Its Retrenchment Strategy Been Successful? OVERVIEW In February 2005, Brenda Barnes, Sara Lee’s newly-appointed president and CEO, announced a bold and ambitious multi-year strategic plan to transform Sara Lee into a more tightly focused food, beverage, and household products company. The centerpiece of Barnes’ transformation plan was the divestiture of weak performing business units and product categories accounting for $7.2 billion in sales (37 percent of Sara Lee’s annual revenues). While the divestitures would cut Sara Lee’s revenues from $19.6 billion to about $12.3 billion, Barnes believed that Sara Lee would be better off concentrating its financial and managerial resources on a smaller number of business segments where market prospects were promising and Sara Lee’s brands were well- positioned. Once the retrenchment initiatives were completed, the plan was to drive the
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Case 16 Sara Lee Corp in 2011 Has Its Retrenchment Strategy Been Successful

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