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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.

QUESTIONS:

  1. Use Porter’s Five Forces Model to analyze Sara Lee as a takeover target. What forces make it attractive? Unattractive?
  2. How did Sara Lee and JBS grow their companies? Does it make sense for JBS to depart from this strategy to acquire Sara Lee?
  3. 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)

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