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Case Analysis 2

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Text Preview I. POINT OF VIEW
Larry D. Young
Mr. Larry D. Young has been the Chief Executive Officer and President of Dr. Pepper Snapple Group, Inc. since October 10, 2007. He has the complete control over the company to change, improve or introduce new control process/es. He has the control of the profitability of the company, as well as the potential marketability of the company’s products.

II. PROBLEM STATEMENT
What policies and procedures could Snapple formulate to conquer its lack of national recognition?

III. ANALYSIS OF RELEVANT CASE FACTS
Macro/General Environment
Carbonated beverages were the 4th largest nonalcoholic beverage category in the US in 2006 and the fasted growing beverage category Average US per capita consumption of energy beverage drinkers increased by 14% since 2004 Energy beverage consumers limit their choice to only 1.4 different brands, which suggests brand loyalty in this market Entrance of hybrid energy beverages, such as energy water, energy fruit drinks, ready-to-drink energy teas, and energy colas

Internal Environment
Attractive positioning within a large, growing, and profitable market Strong portfolio of leading consumer-preferred brands
Strong customer relationships
Experienced executive management team
Strong operating margins and significant, stable cash flows
Minor compared to larger peers
Heavy rely on 3rd party bottlers for packaging and distribution Concentrated in US, Canada and Mexico and lack of international exposure

SWOT Analysis

External Environment Analysis

Internal
Environment
Analysis
OPPORTUNITIES
Availability of Snapple’s vending machines
Increase competition which promises to expand the market
Since Snapple is now part of Cadbury Schweppes, which is one of the world’s leading beverage companies, there will be an increase in demand for Snapple products THREATS
Expensive advertisements
Pepsi/Unilever (Lipton) and Coke/Nestle... Show More

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