These two distinctive mentalities would create complications when Quaker Oat acquired Snapple in — a difference that seemed to have been left out in the pre-acquisition discussions.
In addition, the company should change its approaches to advertising which also proved to be ineffective. By focusing on offense, Quaker Oats ignored the downside, or defense, of the acquisition. However, the outcomes of the acquisition were quite disappointing since the acquisition resulted in considerable losses of Quaker Oats.
This section includes the most significant miscalculations when acquiring Snapple. This examination discusses both companies internal goals pre-acquisition, the underlying reasons why Quaker Oats decided to acquire Snapple and which bias-traps Quaker Oats fell victim to when deciding to acquire Snapple.
To put it more precisely, the company attempted to improve the distribution, increasing the speed of the distribution. At the same time, the strategy of the market expansion is closely intertwined with the policy of acquisitions of new brands and companies, which, on the one hand open new markets and provide new opportunities for Quaker Oats, while, on the other hand, new acquisitions can raise new problems the company has to solve.
Quaker Oats and Snapple had two distinctively different mentalities and strategies in place pre-acquisition. Finally, Quaker Oats needed to scale back its estimation of its corporate capabilities. Future Recommendations Though it committed many mistakes in its acquisition of Snapple, Quaker Oats may have been able to realize the potential of its purchase with a few actions.
Restructuring in the Mids In the mids, PepsiCo began to encounter severe problems in its international bottling operations and in its restaurant division. Stokely-Van Camp, the producers of Gatorade, proved to be a truly successful acquisition. It was reorganized as the National Pepsi-Cola company inonly to go bankrupt again three years later.
It bought back 54 million shares in69 million shares in and 59 million shares in In fact, the company should change the system of distribution of Snapple, using its own distribution system which proved to be more effective.
Goold, Michael, and Andrew Campbell. We will write a custom essay sample on The Pepsico Company: However, these changes brought little positive changes. First, Quaker Oats, one of the most widespread American food companies, has focused on diversification since its foundation in 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.
The Pepsico Company: the Quaker Oats Acquisition; The Pepsico Company: the Quaker Oats Acquisition. 2 February InQuaker paid $1. billion for Snapple’s corporation, which sold branded juice-based beverages. Quaker then made the mistake of replacing Snapple’s distributors, and alienating the brand’s target consumers.
In such a way, the acquisition of Snapple by Quaker Oats opened the way to new segments of the market and the company could become the third largest beverage company after Coca Cola and Pepsi. These were the major reason for the acquisition.
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.
But the most notoriously known sports drink would grow in sales to over $ billion worldwide by Quaker Oats - Snapple Acquisition Analysis; Quaker Oats - Snapple Acquisition Analysis. Words Feb 23rd, 11 Pages.
The Pursuit of Synergy: Quaker Oats-Snapple Acquisition Professor Sherif A. Ebrahim Business Strategy Report for Quaker Oats Essay Words | 6 Pages. Quaker Oats – Snapple Acquisition Analysis Essay Sample.
Many successful businessmen and women have concluded that the most successful acquirers are also the most disciplined.Download