Question

1. What business and corportate strategies did Keurig Green Mountain have prior to the Dr. Pepper Snapple transaction?

2. To what extend does the Dr. Pepper Snapple acquisition change Keurig Green Mountain's corporate strategy?

Answer 1

1. Corporate Strategies followed by keurig green mountain

* sustainability is the basic and most essential element of keurig. Thus they tried to incorporate sustainability into all aspects of business.

* inorder to measure the progress and track the targets a centralised management tool is used by company.

* where as inorder to update their strategy , materiality matrix was developed.

* Integrated sustainability model of keurig green mountain includes

i. supply chain management - how is it followed ?? i.e details like purchasing from farmers / vendors respective raw materials , logistics maintenance etc...

ii. sustainable products :

In order to maintain reason rush of customers in units ,

• Understanding the preference of customers

• marketing such a way that large group of people have the knowledge of placement of units.

• maintaining consistent formula for various beverages specific tastes.

• making availability of various options.

• introducing innovative flavours etc are to be maintained.

iii. Human resource matters to be maintained with sustainability are

* service that is being provided by units human resource hasto be pleasant.

* modest behaviour of unit employees with their respective customers.

* maintaining friendly relations with important customer communities and so on.

This sustainability model is implemented by sustainability leadership committee. And the reports / track records of continuous sustainability maintenance and performance in reaching specific targets are to be reported to executive leadership committee of company and works as functional decision maker of keurig.

2. Dr. Pepper Snapple on merging with keurig green mountain

* on merging , keurig paid a cash dividend of $103.75 per share and retained 13% of combined capital.

Now after this transaction

* keurig wants its combined company to expand the units with availability of both hot and cold baverages are remain in every customers tastes virtually.

* its target range is entire north america.

* now its target is to creat sustainable targets on both hot and cold baverages making large varieties of innovative baverage options available to customers.

* a collaborative leadership commities in this combined company takes care of sustainablity achievement now.

* the main target to either companies is to incorporate existing popular flavours consistent in combined company units. The secondary target comes by incorporating the same in new innovative flavours.

* the best benifit out of this transaction is the stakeholders and now the scope of baverage increased to both the units on combining. Thus , retaining product value of their actual roots in addition to enhanced tastes is the only way to achieve profitable position to stakeholders.

This collaboration strategy have not much affected the sustainability strategies of keurig green mountain in return enhanced the scope of its incorporation in large area of operations now.