Summary
Acquisition is one the strategies which companies undertake to consolidate their positions in the Business
Analysis
The possibility that sara lee may consider acquisitions to fuel growth in its food and coffee divisions will have a major impact to the business.
One of the key issues in international business is how companies reciprocate their Business models along the lines of expansion and position defending.
Sara Lee as a forward moving consumer goods company,it looks set to increase its presence in other areas where prevously its wasnt operating in.The strategy will enable the company fully meet its consumers needs.Geographical expansion of its operation will enable the company transform more from single country operations to multi country multi-product operations.
The decision to acquire more businesses will create more business for the International supply chain managers like Olam International which for long have been supplying Sara lee with food ingredients.
The non performing business have to be disposed off and concentrate on the performing Businesses.This will enable the company raise some money to use for acquisitions.
Its agood strategy to undertake acqusitions as in the process more markets will be opened and more suppliers will be on board.
It will arouse interest for companies like Olam International which supply food ingredients to Sara lee.
