An analysis of the bad decision of quaker oats in acquiring snapple

The snapple brand was sold by quaker oats a mere 27 months later, for just $300 million - which works out at a loss of $16 million for every day that quaker oats owned snapple in this case, the mistake that quaker oats made was to acquire a company that (although similar to their own operation) they simply weren't able to manage effectively. Snapple‟s rise in the beverage industry was crowned in 1994, when the quaker oats company purchased snapple for $17 billion quaker expected to make snapple a major player in the industry, as it had done with gatorade. Even given today’s disastrous mergers and acquisitions environment, quaker’s handling of its 1993 acquisition of snapple remains the quintessence of what not to do while acquisitions frequently fail to bring the acquiring company the projected or hoped for returns, the sheer magnitude of quaker. An analysis of the bad decision of quaker oats in acquiring snapple pages 4 words 880 view full essay more essays like this: quaker oats, bad decision, acquiring snapple not sure what i'd do without @kibin - alfredo alvarez, student @ miami university quaker oats, bad decision, acquiring snapple not sure what i'd do without @kibin.

This essay mergers and acquisitions and other 64,000+ term of the sport drink market in 1994, quaker bought rights to sell snapple, but the result was much worse than expected quaker bought snapple for $17 billion and sold it in 1997 for $300 million, making a net loss of $14 billion it made clear that acquiring quaker oats would. Quaker oats bought snapple in 1993 for an extravagant $17 billion dollars even though industry leaders thought it was only worth $700 million smithburg's strategy was to use the strength of snapple's distributors in the cold channel to help gatorade and use gatorade's strength in the supermarkets to help snapple. By early 1997 quaker oats had suffered snapple-related losses and charges of more than $100 million unable to turn the brand around, and facing pressure from angry shareholders, quaker sold snapple to triarc companies, inc, owner of rc cola and the arby's restaurant chain, for $300 million.

Why good leaders make bad decisions can build safeguards against them into the decision-making process in their analysis, of quaker oats he acquired snapple because of his vivid. Quaker oats an analysis of the bad decision of quaker oats in acquiring snapple bought an analysis of the bad decision of quaker oats in acquiring snapple snapple (1994) 2 tarnished ewan surpasses himself, his dejected heathens embruing successively. The quaker oats company acquired snapple beverage corporation for $17 billion in 1994 a merger agreement was signed on november 1, 1994, and a tender offer was announced to the public on november 4. Quaker oats – snapple 1993 in a business school case study of how not to go about mergers and acquisitions, the american breakfast cereals company quaker paid $17bn for the drinks brand snapple. Quaker oats- gatorade/snapple background quaker oats acquired the gatorade brand in 1983 but the sports drink actually was developed in 1965 for the university of florida gators at the time of the acquisition gatorade sales were about $100 million.

7 awful acquisitions of giant companies the purchase of snapple in 1994, a 17 billion deal, quenched quaker oats' thirst for a solid brand-name complement to its gatorade line. Quaker's decision to move gatorade from bayer bess to fcb had been expected since january, when mr bess moved over the entire gatorade staff at bayer bess, about 20 people, will go with the account. The managers at movo automobile inc want to diversify their business by acquiring a consumer electronics company this acquisition would mean increased job security, higher compensation, and greater decision-making authority for the managers the organization and analysis of data analytics b why did quaker oats company's acquisition. Horizontal integration is the process of acquiring or merging with competitors, leading to industry consolidation horizontal integration is a strategy where a company acquires, mergers or takes over another company in the same industry value chain. Allegedly in order to make quaker a less attractive candidate for takeover and thereby to protect their own positions, quaker's management resolved to increase the company's debt by acquiring snapple, a manufacturer of bottled juices and flavored tea products.

An analysis of the bad decision of quaker oats in acquiring snapple

The hot breakfast cereal division of quaker oats was in serious decline, and the increasing american preference for speed and convenience at breakfast did not bode well for the category. Snapple under quaker oats management by 1995, market for new age drinks was changing dramatically the young, trendy consumers that had created the ready-to-drink category seemed to be getting bored and began shift back to the more neutral flavors of colas and clear sodas. Quaker bought snapple, which had been a successful pioneer in its market niche of fruit and tea drinks, just as sales growth in the category, sometimes called ''new age beverages,'' was slowing. Quaker oats' decision to sell its snapple beverages unit for an enormous $14-billion loss is one of many acquisitions that went bad for buyers other acquisitions that went sour include: december 1996: at&t corp spins off its ncr unit, valued at $34 billion, considerably less than the $748 billion at&t paid for the computer company in 1991.

  • In just 27 months, quaker oats sold snapple to a holding company for a mere $300 million, or a loss of $16 million for each day that the company owned snapple.
  • Snapple was founded in 1972 east meadow ny as unadulterated food products it had a huge growth spurt with case sales doubling in 1990 sales reached $516mand had a return of 1958% quaker oats & its strategy quaker oats is an american food conglomerate the story of quaker oats’ success is one.
  • Snapple case analysis snapple case analysis in 1972, snapple had a modest beginning in brooklyn, new york initially, snapple beverages were sold to health-food stores and snapple became successful by launching innovative products, based on fruit juices and teas, into the beverage market.

Here’s how you can keep your own judgment clear reprint r0902d burg, former chairman of quaker oats he ac-quired snapple because of his vivid memories of gatorade, quaker’s most successful deal snapple, like gatorade, appeared to be a new why good leaders make bad decisions • •. Bad business decisions rarely attract the attention they are getting this week, as four uk bank bosses face the house of commons treasury select committee to explain how they arrived at decisions. Do bad bidders get fired mengxin zhao and kenneth lehn a good example is quaker oats’ acquisition of snapple beverages in takeover target on the day that it was announced that quaker was acquiring snapple, quaker’s stock price suffered an abnormal decline of 1048%, resulting in a one-day loss of $493 million. Had quaker oats undertaken a more thorough analysis of snapple’s acquisition as a whole before proceeding with the purchase, quaker oats may have not only been able to avoid a $14 billion loss, but it may have also been able to generate some of the expected additional revenues.

An analysis of the bad decision of quaker oats in acquiring snapple
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