Nov 27th Strategy Quaker Oats Exam Case

5 Pages
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Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 4410A/B
Professor
Raymond Leduc

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Description
Quaker Oats Case Strategic Vision Quaker Gatorade Snapple Strategic Vision nothing To quench the hot nothing + thirsty consumers in every corner of the world Business Mission Food & Bev, MFG Financial - 7% real growth - #1 growth Almost no Objectives - shareholder priority for financial returns better Quaker objectives ???? than S&P - specific - Continue growth dividend targets in increases (27 geo areas year) - Strategic - Reduce risk of - grow Objectives takeover HoW? distribution by - Continue 10,000 units growth expansion Right of the bat, we should probably make a recommendation here. Successful companies have visions. What does this mean? Recommendations - Quaker need CASH to meet some of their objectives. - Gatorade will need investment CASH to grow - We don’t know what expectations Quaker has of Snapple. WARNING! Industry Analysis (Five Forces) - lots of substitutes, - lots of buyer power, low switching cost - threat of new entrants is (strong/moderate) o but brand image was important, harder to get shelf space, easy to create a drink for this category, but pepsi and coca cola set the standards - Rivarly is intense, calculate sales growth, you see pepsi is growing very fast o Soft drink industry is stagnate, so big companies are moving into this one - Power of Suppliers, (weak/moderate) o Can shift really quickly because of changing customer taste Overall, this is not a very attractive today. We just made this huge investment. Driving Factors (Future Looking) o New age beverage, they have the appeal of health trend, this is not a health drink though o Water is the biggest threat o Is this a fad? We saw how fast Arizona came in o 75% of our revenue dropped in a year Overall, this is uncertain, and it doesn’t look Key Success Factors o volume and distribution o taste o marketing o manufacturing to lower costs o financial resources o RELATE THIS TO THE FIVE FORCES NO Recommendations here yet, because this is industry only. This might not look attractive now, but we already bought the company so we gotta understand the industry. Competitive Analysis KSF Snapple Pepsi Coke Dist Not as good Very Strong Very Strong MFG BUT! Now we have MKT Skills Quaker Flavour Strong (but its not Not as strong Not as strong Terminology Taste hard for our competitors to copy $ Resources Weak Very Strong Very Strong Implication: the things that we are good at are not sustainable, however, this is not Snapple fighting Coke and Pepsi, Quaker is helping Pepsi and Coke are very aggressive in this category Current Business Strategy Quaker Gatorade Snapple Broad Focus (in customer Focus Diff appeal) Diff Nostalgia Diff (this stuff actually (MOR
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