Swot on Sara Lee
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Strengths:
Sara lee has ability to charge to customers higher prices, Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using Sara Lees products and services.
Economy of scale is the cost advantages that Sara Lee obtains due to size. They have greater volume and greater advantages.
Asset leverage allows Sara Lee to use their best operational assets to expand their business and improve their market share.
A strong supply chain helps Sara Lee obtain the right resources from suppliers and delivery the right product to customers in a timely manner.
A strong brand name is a major strength of Sara Lee. This gives Sara Lee the ability to charge higher prices for their products because consumers place additional value in the brand.
Weaknesses:
An inefficient work environment means that Sara Lees goods and services are not being utilized properly.
A weak cost structure means Sara Lees costs are high in comparison to their competitors.
Bad acquisition can hurt Sara Lee by increasing their costs and reducing the value of their combined businesses. Acquisitions can also distract from the core business and merge cultures that dont complement each other.
Opportunities:
Leveraging the balance sheet allows Sara Lee to quickly expand into other markets and products, especially in fragmented industries. “Financial Leverage (Sara Lee)” has a significant impact, so an analyst should put more weight into it. “Financial Leverage (Sara Lee)” will have a long-term positive impact on the entity, which adds to its value. This statement will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. “Financial Leverage (Sara Lee)” is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.
Greater innovation can help Sara Lee to produce unique products and services that meet customers needs “Innovation (Sara Lee)” has a significant impact, so an analyst should put more weight into it. “Innovation (Sara Lee)” will have a long-term positive impact on the entity, which adds to its value. This statement will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. “Innovation (Sara Lee)” is an easily defendable