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Executive MBA Multi National Company Project for Sara Lee
Citation preview
Mike Brown Miles Fields Vernessa Hopkins Jian Xi
Team FiveSaint Joseph’s University Executive MBA
S a r a L e e Multi National Company Project
Project Proposal
Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat products, fresh and frozen bakery products, roast and ground coffee,
and tea products worldwide.
Sara Lee Overview
Background Information• Founded: 1939 by Charlie Lubin• Interim CEO: Marcel Smits• Headquarters: Downers Grove, IL• Employees: 33,000• Sector: Consumer Goods• Industry: Processed Packaged Goods
2009 Key Financial• Ticker: SLE• Stock Price: 9.58• Revenue: 12.8B• Net Income: 364M
Sara Lee Overview Continued
45%
55%
2 0 0 9 S a l e s
International Buisness North American Business
Sara Lee Overview Continued
O u r V i s i o nTo be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who make things happen.
O u r V a l u e sAct with Integrity, Use Imagination, Be Inclusive, Work as a Team, and Have Passion to excel
Mission and Values
SARA LEE CORP
SLE Jun-07 Jun-08 Jun-09
SIZE
Net Sales ($ Millions) $12,278 $13,212 $12,881
Net Income ($ Millions) $426 -$41 $364
Total Assets ($ Millions) $12,190 $10,830 $9,417
Total Employees (000) 52.400 44.000 41.000
PROFITABILITY ANALYSIS
Sales/Sales 100.0% 100.0% 100.0%
COGS/Sales 57.8% 58.6% 59.8%
Gross Profit 42.2% 41.4% 40.2%
SG&A/Sales 31.9% 30.2% 29.2%
DUPONT ANALYSIS
Return on Sales (ROS) 3.5% -0.3% 2.8%
Assets Turnover 1.01 1.22 1.37
Return on Assets (ROA) 3.5% -0.4% 3.9%
DFL (Assets/Equity) 4.662 3.853 4.625
Return on Equity 16.3% -1.5% 17.9%
LIQUIDITY RATIOS
Current Ratio 1.312 1.163 1.346
Quick Ratio 1.068 0.845 0.985
TURNOVER RATIOS
Inventory turnover 6.753 6.346 7.494
Days of inventory 53 days 57 days 48 days
Account Receivables turnover 9.394 8.861 9.670
Days of receivables 38 days 41 days 37 days
Sales/Net Property Plant & Eq 5.020 5.245 5.467
Assets turnover 1.007 1.220 1.368
DEBT RATIOS
Debt to Assets 78.5% 74.0% 78.4%
Debt to Equity 366.2% 285.3% 362.5%
Interest Coverage (EBIT/int exp) 3.0 5.3 5.8
SLE 7-Jun 8-Jun 9-Jun 10-Jul
Net Sales ($ Millions) $12,278 $13,212 $12,881 $10,793
Financials continued
Financials continued
June, 2009 June, 2008 June, 2007 July, 2006 July, 2005$0
$5,000
$10,000
$15,000
$20,000
$25,000
$-
$5.00
$10.00
$15.00
$20.00
$25.00
Net Sales vs. Share Price
Net SalesShare Price
Nestle KRAFT FOODS
TYSON FOODS
General Mills
Kellogg Company
SARA LEE Hershey
103 B
45 B
28 B14 B
12 B 10 B5 B
Competitor Comparison
47%
20%
13%
7%
6% 5% 2%
Market Share
Nestle KRAFT FOODSTYSON FOODS General MillsKellogg Company
SARA LEE
Hershey
Competitive Analysis
87%
13%
International Bakery
Western Europe
Australia
Sara Lee International
78%
16%
6%
International Beverage
Western & Central Europe
Brazil
Asian Pacific
87%
13%
International Bakery
Western EuropeAustralia
Innovation Supply Chain Marketing Customer Management
Core Functional Capabilities
Business Units
North America Retail
North America
Fresh Bakery
North America
Foodservice
International Bakery
International Beverage
•
R&D• The Kitchens of Sara Lee• Adjacent to corporate
headquarter• Supports North America
Innovations on food services and retail business
Supply Chain and Manufacturing• Make products where they
are sold• Focus on efficiency, safety
and sustainability
Corporate Shared Services• Financial and Accounting• Human Resources• IT Support
DistributionThrough:• Retail stores• Restaurants, warehouses, hospitals
and other large institutions• Retail Bakery offers direct store
delivery system
Marketing & Sales• 63% of Total Revenue
(approx. $6.8 billion)
•
Functional Value Chain North America
North America Fresh Bakery
North America Fresh Bakery
North America Foodservice
Outsourced Services (to IBM)• Financial and Accounting• Information Technology• Indirect Procurement
Global Supply Chain and Manufacturing• Make products where they are
sold• Focus on efficiency, safety and
sustainability
Global Shared Services• Human Resources
Global Distribution• Distribute to retail
stores, warehouses, and restaurants through direct delivery system
Global Marketing & Sales• Generate approx. 37% of
revenue ($4 Billion)• Spread over 200 countries
R&D• The Kitchens of Sara Lee• Adjacent to corporate
headquarter• Supports North America
Innovations on food services and retail business
Functional Value Chain International Business Units
International Beverage
•
International Bakery
Raw Materials Suppliers ManufacturingPlants
RetailChannels
• Meats• Wheat flour• Sugar• Green coffee
beans
• Third party suppliers
• Independent farmers
• 230 facilities• Processing plants• Warehouses• Distribution
centers
• Supermarkets• Warehouse
clubs• Restaurants• Institutions
Geographical Supply Chain
Geographical Supply ChainBusiness Segment
• 2010• 2009• 2008
North American Retail
• 26.0%• 25.3%• 23.8%
North American Bakery
• 19.7%• 20.2%• 18.4%
North American Food Service
• 17.3%• 19.2%• 19.9%
International Beverage
• 29.7%• 28.0%• 29.4%
International Bakery
• 7.3%• 7.3%• 8.5%
Geographical Supply Chain
United States
29
Australia
10
United Kingdom
15
Germany
15
Spain
10
Netherlands
41
France
14
Sara Lee Subsidiaries and Locations Worldwide• 224 Subsidiaries Worldwide• 44 Countries• HQ Downers Grove, IL
Questions
Thank You