Management and Organizational Studies 4410A/B Lecture Notes - Lecture 3: Snapple, Tim Hortons, Core Competency

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: John White

Document Summary

Related diversification: tim hortons buys burger king, advantages: more sales, broaden to reach other consumers, synergy- suppliers/producers, decrease competitors, cost savings. Unrelated diversification: ge owns telephones, washing machines, etc, advantages: diversify/minimize risk, combined points/royalty programs, media, coupons, no cost savings. Quaker + snapple: took gatorade and its success sky rocketed, grew into a massive brand, then snapple comes along, advertised as an energy drink, new age beverage. Independent company at the time: when acquiring snapple, got into a bidding war with coke, overpaid like crazy for it. Snapple- natural, organic: cant store at room temp- quaker owned 0 refrigerated trucks, gatorade- sugar, water, chemicals. Synergies: relationships to stock snapple in places that gatorade or quaker already is- get onto more shelves: procurement: things didn"t line up between quaker and snapple, sold off snapple, pepsi came in and acquired gatorade from quaker.