Keurig Green Mountain Acquisition of Dr Pepper Snapple Group Assignment 2

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.

  1. 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?
  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.

Submission Instructions: You must submit the Word document at the link provided on Blackboard no later than the due date. There are no extensions unless the student has a valid University excuse. In addition, there is no substitute (or extra credit) assignment if the student fails to submit this required assignment on time.

Grading Rubric:

Answer organization (15%): Answers are organized with clarity and fluency, and are error free.

Business Knowledge (15%): Student understood the articles, researched the company website, and researched credible sources that are supported by complete references at the end of the paper.

Application of the Materials (15%): Answers provide the application of the most important business and corporate strategy concepts found in the course materials as discussed in class and in lecture notes provided by the instructor.

Student’s position (25%): Answers demonstrate that the student identified the critical issues and offered his/her position in a rigorous critical analysis.

Quality of the Answers (30%): Answers provide content that represents a comprehensive exploration of the situation and an excellent presentation of arguments.