Read the following report.
Source: Financial Times, February 11, 2005
Sara Lee streamlines business portfolio
Sara Lee Corporation yesterday unveiled a sweeping restructuring plan including the spin-off of its apparel business, disposals and the appointment of a new chief executive.
The move addresses years of investor concern that the company was spread too thinly across too many businesses. Sara Lee's products range from underwear to Douwe Egberts coffee.
Ms Barnes, chief operating officer, said: 'Under our plan, we will concentrate our financial and management resources on a smaller number of business segments.' Sara Lee will be streamlined into three business units focused on bakery, meats and household products.
It will also spin off its branded apparel business in the US. The company aims, by the end of this calendar year, to sell its European packaged meats business, its Chock full o'Nuts US coffee unit and a 'direct selling' business that uses a network of individual sales people to sell cosmetics and shampoos.
'It'll be a smaller company that's much more profitable,' said Theo de Kool, chief financial officer.
The restructuring will take about five years, by which time Sara Lee aims to have boosted operating margins to 12 per cent at the remaining businesses, compared to about 8 per cent currently.
Gather more information on the Sara Lee Corporation and its businesses.
How would you characterize Sara Lee's business portfolio (before the transformation announced in February 2005)?
What are the main strategic decisions in transforming Sara Lee?
Give a short characteristic of Sara Lee's new organization (chart) seen from the top as a vehicle to realize Sara Lee's new strategy.
Section 5.3 (incl. 5.3.4 and 5.3.5)