Sara Lee Corporation in 2011 and Hillshire Brands through 2013

Brenda C. Ledford MGMT 670

Professor Bosin November 18, 2013

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Table of Contents Slide 1 Title Page Slide 2 Table of Contents Slide 3 Company Mission and Vision Slide 4 Porter’s Five Forces Analysis Slide 5 SWOT Analysis Slide 6 Strategies and Goals Slide 7 Key Competitors Slide 8 Profitability Ratio Comparison Slide 9 Liquidity Ratio Comparison Slide 10 Leverage Ratio Comparison and Revenues Slide 11Non-Financial Measures and MAP Expenditures Slide 12 Performance Management Framework Slide 13 Future Recommendations

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Mission, Values and Vision

Mission “Built Lean and driven by innovation, we have the right attitude, the right people and the

right assets in place to achieve sustainable, long-term results. Going forward, Hillshire Brands is poised for success- but we will never be satisfied. We are hungry for more.”

Values • “We value everyone because we believe in an inclusive, collaborative culture where

great ideas can come from anyone.” • “We value integrity because doing the right thing is always the right thing to do.” • “We value ownership because passionate and relentless dedication to the success of

the enterprise will fuel our performance.”

Vision “Become the most innovative meat-centric food company in the U.S.”

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Porter’s Five Forces

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SWOT Analysis

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Strategies and Goals Strategies

Divestment- primarily completed by 2012 but includes efforts to keep business growing by aligning effort with strategy

Cost and Production Efficiency- continued application of

efforts of Project Accelerate Innovation- establishing a ‘culture of innovation’ through

experience , quality assurance measures and copyright and patent protection

Branding- through “world class advertising and marketing

programs that speak directly to customers lives” Pure Play- streamlining Hillshire Brands toward one focus-

meat centric products- to maximize shareholder value Take pricing measures when input costs rise that align with

strategy

Goals • Strengthen major brands: Sara Lee, Ball Park,

Hillshire Farm, Jimmy Dean –ongoing through increased marketing, advertising and public relations management

• Increase revenues to $14 billion by 2010

• Improve credit rating and investor confidence • Increase profit margin to at least 12% by 2010 • Increase cost and production efficiency through

Project Accelerate –ongoing • Increase revenues by 13-15% of annual

revenues from new items introduced since 2010 • Return more cash to shareholder via dividends

and share repurchases

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Key Competitors

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FISCAL 2012 SALES By Segment

FISCAL 2012 SALES $33.3 Billion

Profitability Ratios

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Operating Profit Margin Benchmark

Annual Net Income Benchmark

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Liquidity Ratios Current Ratio Benchmark

Working Capital Benchmark

Leverage Ratios

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Long-Term Debt-to-Capital Ratio

Revenues

Nonfinancial Measures and Advertising Expenditures

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Achieving Vision and Long-Term goals

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Future Recommendations

• Be proactive in implementing changes outlined by the Food Safety and Modernization Act before it becomes mandatory

• Continue efforts to reach beyond current customer bases to increase market share [targeting Spanish speaking populations and the K-12 initiatives]

• Consider ways to refocus current seasonal preferences so that consumers continue purchases beyond respective seasons

• Many suppliers do not currently enter into long term contracts- changing this may help cushion the need to raise prices when raw material costs fluctuate

• Control the social media feedback and noise by proactively engaging with customers who have complaints to resolve issues before they escalate and cause public relations problems that will result in loss of market share

• Expand initiatives currently underway that focus on the trend of health and wellness • Concentrate on reducing the debt-to-income ratio so that credit rating can be upgraded and image will

reflect favorably in company’s favor and will reflect negatively on Tyson’s image for low credit rating. • Acquire a ‘private label’ to share copyrighted recipes and intelligence with, and strive to make the

products comparable to your highest brands and become the number on private label on the market. This will help cushion in the event of economic hardship causing purchasing trends away from your brands. With Wal-Mart being largest retailer – putting that relationship to the companies advantage in this endeavor will ensure its success

• Continue efforts to ensure stakeholders that internal accounting issues are under control • Ensure that all future acquisitions contribute positively to the future and success of the organization in

its current pure play focus on meat centricity. • Take measures to balance the underfunded pension plans so this will not negatively impact future

profitability

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