Keurig Green Mountains Acquisition of Dr Pepper Snapple Group Discussion

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Keurig Green Mountains Acquisition of Dr Pepper Snapple Group Discussion

1. Analyze the nonalcoholic beverages industry using Porter’s five competitive forces. Based on the results of the analysis, is this an attractive industry for a new entrant? What are the most critical competitive forces in this industry?

2. What business and corporate strategies do Keurig Green Mountain (KGM) implement prior to the Dr. Pepper Snapple (DPS) transaction? To answer this question, you must identify KGM’s primary industry.

3.To what extent does the DPS deal change KGM’s corporate strategy?

4.Which expansion mode did KGM use in the DPS transaction?

5. Based on your answers to a-d, does this deal make sense? Answer this question by discussing the benefits versus the costs of this diversification decision.

6. To what extent do the benefits of this transaction justify (or not) the purchase price of $19 billion in cash plus stock? Your answer must discuss whether you believe the combined company can achieve the $600 million in annual synergies and other risks that the deal will not close. A strong argument in favor of the deal must demonstrate that the benefits outweigh the costs.

. Writing Style Requirements: The paper must follow all style requirements for written assignments in this course (including the APA writing style, double-spaced paragraphs, a 12-point font, one-inch margins, and no more than seven pages) and have a minimum of four (4) credible outside reference sources.