Saturday, May 11, 2019
Strategic management ..case analysis Essay Example | Topics and Well Written Essays - 1750 words
Strategic management ..case analysis - judge Exampleaccount the stability in the souseds profits the years 1998-1999 was a finale with no increase in the unanimouss profits despite the facts that the investment on the upstandings units remained high. The plan of Brenda Barnes was based on the divestiture of weak-performing business units and product categories accounting for $8.2 billion in gross sales (case study). The specific strategic decision could be characterized at a first level as raving mad the business units involved in the plan represent the 40% of the firms revenues. In this context, the firms profitability would be reduced however, Barnes believed that the specific initiative would lead shortly to the increase of the firms profitability. In accordance with the above, the retrenchment system suggested by Barnes has changed the firms existing course up. Up to the introduction of Barnes strategic plan the firm was based on the simultaneous packaging of various p roducts/ services further also the continuous expansion of the firms operational activities by dint of the acquisition of competitors Barnes strategic plan has led to the limitation of expansion of the firms activities but also to the increase of its strength regarding specific products/ services those with strong brand names. The effectiveness of the specific strategy will be analyzed further on taking into consideration the market conditions and the position/ forefinger of competitors.The products offered by Sara Lee represent a wide range of industries. At its beginning (1939) the firm was link up with the distribution of specific products (sugar, coffee, tea). Gradually, the firms activities were expanded to many different industries (selling of meat, canned products, vacuum cleaners, in the flesh(predicate) care products, household products, athletic wear, grocery, bakery products, coffee brands and so on). The long term attractiveness of these brands cannot be guarantee d because all these products need to be equally promoted, the
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