Two corporate mainstays – one in the United States (Sara Lee) and one in Brazil (JBS) – are considering a deal to join the two companies. The move comes in a frenzy of acquisitions by foreign companies in the United States, with Brazilian companies leading the way. Markets reacted favorably to news of a possible acquisition. The deal is not done and Sara Lee is considering several options.
- Use Porter’s Five Forces Model to analyze Sara Lee as a takeover target. What forces make it attractive? Unattractive?
- How did Sara Lee and JBS grow their companies? Does it make sense for JBS to depart from this strategy to acquire Sara Lee?
- Analyze the purchase of Sara Lee from the standpoint of global strategy.
SOURCE: G. Chon, A. Das, I. Brat, & J. Lublin, “Sara Lee Weighs Foreign Takeover,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704034804576025920799954668.html)