UNIT ASSIGNMENT 5

Unit Assignment 5

Unit Assignment 5

Introduction

The topic is based on the case study with a title “Sara Lee Attempts to Create Value through Restructuring”. The main focus was on the strategies adopted by Sara Lee in enhancing the value of the company. In the end, Sara Lee made a decision to split the company into two separately public traded companies. Therefore, all the issues related to the topic will be discussed in detail.

Thesis Statement

It is important to have an appropriate restructuring plan for any organization to increase its shareholder's value and profits.

Purpose of the Paper

The purpose of the paper is to examine the different restructuring options for Sara Lee that can prove to be beneficial for the company.

Overview of the Paper

The overview requires a detailed discussion of the company's restructuring plan for future.

Body of the Paper

Potential for Cross Border Merger

Sara Lee needs to identify some of the countries that have scope for a potential cross border merger. Sara Lee is a North American based company that is going to have two separate entities for their business operations. The first entity would deal with North American's Retail and Food Service Division and second entity is going to look after the International Beverage Business. The regional countries can include Canada and Mexico. The opportunities in these countries can bye utilized by Sara Lee in order to increase their market share and expand scope for the restructuring plan. The company has done well in the European markets by acquiring different types of businesses such as Food & Beverages, Apparels and Household Products. Though, the regional option provides major benefits to the company in increasing their scope of service. The target market increases and the scope of the revenues also become positive for the company (Homburg & Bucerius, 2005).

There are certain factors that can turn to be the point of crisis or contention leading into merger for Sara Lee. The first aspect is that a failure of the new strategy by Sara Lee will certainly make the company to consider the option of merger with another company operating in the industry. The previous efforts of the company in increasing shareholder's value have not produced very good results. Though, extensive efforts were made by implementing various plans to improve stock market performance. All the conglomerates that have different types of ventures needs to adopt a plan that must not affect their operations. It had been seen in the past that some of the plans of the company made them to layoff workers from jobs. This happened because of the closure of certain business units that included manufacturing and distribution work. This is not a positive aspect for the company because it produces a negative impact on their reputation when they are downsizing workers for the jobs. Though, the company tries to give logic on this issue but it is measures on the national parameters. Sara Lee tries to buy all the major companies of this world by having ...