Case Study Strategic Management

Running Head: STRATEGIC MANAGEMENT 1
Strategic Management: Dr. Pepper
Snapple Group, Inc. 2011

STRATEGIC MANAGEMENT 2
Case Abstract
Dr. Pepper Snapple Group (DPS) is the case of strategic management that includes the financial
statement of the company in the end of 2010. In addition to this, the case includes different
information from the year end 2010, competitors’ information, organizational chart etc. Dr.
Pepper Snapple Group is one of the leading producers of flavored beverages and drinks in
Caribbean and North America, which is offering more than 50 brands. DPS is the third largest
manufacturer of carbonated drinks with an expected market share of 5%. The company traces
behind only PepsiCo and Coca-Cola, which have approximate market share of 21% and 47%
respectively. It offered flavored drinks, under its popular brands, like; Canada Dry, 7up, Clamato
and Schweppes. Headquartered in Plano, the common stock of DPS is publically traded under
the symbol DPS (Harrison, 2011). Currently, it is running 24 productions and manufacturing
plants, with all the soft drinks concentrates manufactured in a plant in St. Louis Missouri. It is
implementing an effective business model that includes direct store delivery and third party
distribution system.
The case includes sufficient data from its external and internal environment and evaluates the
existing strategies and recommends some strategies for the timeframe of next three years.
Vision Statement (Proposed)
The proposed vision statement of Dr. Pepper Snapple Group (DPS) is to become the number one
choice for the flavored soft drinks and beverages in the world. By looking at the given case
study, it can be proposed that company should set a vision to become best beverage producer in
the world (Abraham, 2012).
Mission Statement (Actual)
At Dr. Pepper Snapple Group, the vision statement is to become the best beverage provider in
America and across the world. The brands of the company have been identical with the flavor
and fund for different generations, refreshment and sales of the company are composed to keep
growing in the coming future (Dr. Pepper Snapple Group, 2017). The mission statement of the
company is to provide flavored soft drinks and beverages worldwide, fulfilling the wants and
expectations of customers and distributing intensively and to maximize the profits for its external
and internal stakeholders. Through its highly dedicated and motivated employees and utilization

STRATEGIC MANAGEMENT 3
of unique packaging and labeling, the company intends to manufacture fun, refreshing and
flavored drinks, so it can become the market leader in food and beverage industry. For
influencing the environment and its components positively, DPS makes efforts to embark on
recycling process, which via use of new and advanced technology and offers bio-degradable cans
and bottles, in this way it is reducing the chemical pollution to the environment (Kipley, & Jewe,
2014). Thus, DPS is considering all the related parties under its mission statement.
CPM – Competitive Profile Matrix
The Competitive Profile Matrix (CPM) is a strategic analysis, which allows an organization to
compare its performance with its leading competitors. It reveals different strengths and
weaknesses of the company (Hitt, Ireland, & Hoskisson, 2009). After looking at the given case,
the Competitive Profile Matrix for Dr. Pepper Snapple Group is created below by considering its
two leading competitors, PepsiCo and Coca-Cola;
Success Factors Weight DPS PepsiCo Coca-Cola
Rating Score Rating Score Rating Score
Promotion and
Advertising
Distribution
Healthy
beverages
Size of Company
Brand loyalty
Innovation
Vending
Locations
Price
Competitiveness
Market Share
Financial Profit
0.08
0.08
0.06
0.10
0.08
0.05
0.09
0.07
0.11
0.14
3 0.24
1 0.08
2 0.12
2 0.20
2 0.16
3 0.15
2 0.18
2 0.14
2 0.22
1 0.14
4 0.32
3 0.24
1 0.06
4 0.40
4 0.32
2 0.10
4 0.36
4 0.28
3 0.33
4 0.56
2 0.16
4 0.32
1 0.06
4 0.40
4 0.32
4 0.20
3 0.27
4 0.28
4 0.44
4 0.56
Total 1.63 2.97 3.01

STRATEGIC MANAGEMENT 4
The above created Competitive Profile Matrix states the scores for DPS and its two leading
competitors, Coca-Cola and PepsiCo. The score of DPS is 1.63 that shows a below the average
competitiveness, when it is compared to the PepsiCo and Coca-Cola. The scores of Coca-Cola
and PepsiCo are 3.01 and 2.97 respectively that shows that Coca-Cola is the strongest player in
the food and beverages industry. The score of Dr. Pepper is very low because of the separation of
Cadbury Schweppes from DPS in May 2008 (Lee, Kozlenkova, & Palmatier, 2015).
External Factor Evaluation (EFE) Matrix
External Factor Evaluation (EFE) Matrix is a strategic technique that is related to the SWOT
analysis of the company. This matrix is created to evaluate the external factors, which may
impact the growth and success of the organization (Moon, 2010). From the SWOT analysis,
external matrix includes two external factors, like; Opportunities and Threats. External factors
evaluation for the Dr. Pepper is stated below;
Opportunities Weight Rating Score
 DPS has various opportunities for growth
by expanding its business in international
markets.
 Customers are becoming very concerned
about health and prefer to drink the
flavoured drinks
 Increase in the production of packaged
water to fulfil the requirements of markets
and customers
 Company can introduce its new products
other than soft drinks and flavoured
beverages by considering the needs and
preferences of its potential customers
(Johnson, 2017).
 Company should expand its business in
Eastern Europe, Brazil and India that can
0.09
0.06
0.08
0.04
0.07
1
2
4
3
2
0.09
0.12
0.32
0.12
0.14