Quaker oats snapple acquisition analysis essay

Respected executives at both companies sought to capitalize on the convergence of mass media and the internet. Internal Goals and Company Mentality Pre-Acquisition In order to fully understand and appreciate the underlying reasons why companies engage in acquisitions, it is crucial to explore the internal goals, structure, and underlying mentality of the companies involved pre-acquisition.

The goals of the program were to lower fixed costs, write down underperforming assets, and divest noncore businesses. The company was behind even in production methods and processes. Instead of realizing that different brands and companies are successfully managed and distributed differently, Quaker Oats decided to mold Snapple in a similar direction as Gatorade hoping to generate synergy.

Obviously, such results proved the failure of Quaker Oats to integrate the new company in its structure. For instance, the company reduced the number of flavors from 50 to 35 Hartley,p.

Swot Analysis of Snapple Essay

Interview with William D. In addition to the synergy, skills, and parenting biases mentioned above, Quaker Oats was also guilty of upside bias when acquiring Snapple. Nevertheless, in order to maintain the competitive position of the company, Quaker Oats has to expand its presence on both national and international markets.

Simultaneously, the company suffered volume and profit declines in its restaurant businesses. Instead, Quaker Oats attempted to maintain two systems of distribution which needed more efforts and financial resources and did not bring positive effects.

Quaker Oats – Snapple Acquisition Analysis Essay Sample

ThroughoutPepsiCo was closely tracking several potential strategic acquisitions. As such, the Snapple distributors quickly grew to mistrust the Quaker Oats management, convinced that they would have to compromise their more lucrative accounts to be able to deliver Gatorade to mom-and-pop stores.

Nextel employees often had to seek approval from Sprint's higher-ups in implementing corrective actions, and the lack of trust and rapport meant many such measures were not approved or executed properly.

Quaker Oats expanded from the cereal industry into food, groceries and toys. The creation of a new beverage division would have an instant benefit for Quaker Oats making them the third largest beverage company in the US.

In addition, the optimism concerning the acquisition of Snapple was justified by huge growth opportunities since Snapple held good regional market positions in the premium ready-to-drink tea and single-serve juice drink categories. Gatorade and Snapple had different brand images: Two years later, however, the Tropicana acquisition was viewed as an outstanding success.

The Acquisition of Snapple by Quaker Oats Essay - Part 2

The Quaker Oats management, along with Mr. Since it had the resources and management skills, it was foreseen to be able to benefit Snapple brand. In actuality, Quaker Oats had an effective system of production and distribution. Due to distribution,structure problems and unrealistic optimism about the future of Snapple, quacker had a hard time integrating its new division and had yet to beneficiate from the synergies and economies of scale projected.

Thus, it is possible to conclude that the acquisition of Snapple by Quaker Oats was a failure because the company could not integrate the new company into its structure and restructuring process took too much time to become commercially effective.

Furthermore, a clear operating strategy post-acquisition is something that must be in place pre- acquisition. Snapple wanted to create a fun image that suited the lifestyle of regular people.

Choose Type of service. Similarly, Quaker Oats attempt to create a hybrid distribution center, offering Snapple distributors the right to deliver, cold, single serve Gatorade was proven unsuccessful for several reasons.

In an interview with the New York Times Mr.

The Pepsico Company: the Quaker Oats Acquisition

And finally, the politicized and turf-protecting culture of Time Warner made realizing anticipated synergies that much more difficult. In fact, the company should change the system of distribution of Snapple, using its own distribution system which proved to be more effective.

These were the major reason for the acquisition. Management pushed for a merger in a somewhat desperate attempt to adjust to disadvantageous trends in the industry.

Thus, it is possible to conclude that the acquisition of Snapple by Quaker Oats was a failure because the company could not integrate the new company into its structure and restructuring process took too much time to become commercially effective.

At the same time, PepsiCo managers embarked on a major restricting of the international beverage division.For example, Quaker Oats acquired the ice-tea and juice drink producing Snapple in to a price of $ billion, an acquisition where all strategic alternatives was not considered.

Essay on Analysis of Quaker Oats Company

The Snapple acquisition provides several great examples of what could have been done differently. The Pepsico Company: the Quaker Oats Acquisition 2 February Company Overview By the end offollowing a multi-year restricting effort, PepsiCo had once again become one of the most successful consumer products companies in the world.

Quaker Oats – Snapple Acquisition Analysis Essay Sample. Many successful businessmen and women have concluded that the most successful acquirers are also the most disciplined.

Quaker Oats- Gatorade/Snapple Background Quaker Oats acquired the Gatorade brand in but the sports drink actually was developed in for the University of Florida Gators.

At the time of the acquisition Gatorade sales were about $ million. Quaker Oats - Snapple Acquisition Analysis Words | 11 Pages. The Pursuit of Synergy: Quaker Oats-Snapple Acquisition Professor Sherif A. Ebrahim Corporate Strategy, Spring May 1, Pauline Guittard Linn Gustafsson T.J.

Henry Jr. Sevinc Ulu Brittany Williams Many successful businessmen and women have concluded that the most successful acquirers are also the most. View Essay - Snapple Quaker Merger Paper from LGST at University of Pennsylvania. Quaker’s Acquisition of Snapple Whether it is a simple debate with parents for a new dog or a high-­‐stake%(3).

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Quaker oats snapple acquisition analysis essay
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