Reference no: EM132253223
Brannigan Foods: Strategic Marketing Planning
Introduction:
The soup division at Brannigan Foods contributes over 40% of the firm's revenue. The general manager is concerned that the soup industry is declining and that the soup division shows declining profits and market share, especially among the important baby boomer segment. Hoping to reverse these trends, he asks four key managers to review a consultant's analysis of the soup industry and recommend a turnaround strategy. Each manager presents a different plan, from investing in core market segments and products to acquiring new product lines and customers. Before a final recommendation an analysis of each proposal is needed.
Assignment
Assume that Clark takes the recommendation of Claire Mackey, Director of Finance & Planning, to purchase Red Dragon Foods. Consider the recommendations of the other three executives to Bert Clark. What long-term vision should Brannigan Foods establish to offset some of the problems associated with the purchase of Annabelle’s Foods?
1) What are the advantages of Brannigan Foods for this purchase and what are the disadvantages to Red Dragon Foods?
2) Suppose Clark decides to do a merger with Red Dragon Foods. Which type of merger do you recommend and why?
3) What purchase price would you recommend for Red Dragon Foods and what form of consideration should Red Dragon Foods request? Explain your answers.
4) What due diligence should Brannigan conduct concerning Red Dragon Foods?