This assignment is about Keurig Green Mountain’s acquisition of Dr. Pepper Snapple Group. Use information from the attached press release (see the attached web link) and additional sources as needed to answer the questions below.
- Analyze the nonalcoholic beverages industry using Porter’s five competitive forces. Based on the results of this analysis, is this an attractive industry for a new entrant? What are the most critical competitive forces in this industry?
- 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.
- To what extent does the DPS deal change KGM’s corporate strategy?
- Which expansion mode did KGM use in the DPS transaction?
- 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.
- 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.
more instructotions in the attachments.