Requirement (8 pages - not including exhibits; charts and graphs are supported for inclusion):
- Industry/market definition: Define the industry/market in which the acquiring firm competes in terms of size, growth rate, product offering, and other pertinent characteristics.
- External analysis: Describe industry/market dynamics in terms of customers, competitors, potential entrants, product/service substitutes, and suppliers.
- Internal analysis: Describe the acquiring company's strengths and weaknesses and how they compare to the competition.
- Opportunities/threats: Discuss major opportunities and threats that exist because of the industry's competitive dynamics. Be sure that you can show how these threats or opportunities are a consequence of the industry dynamics described in (2).
- Business mission/vision statement: Describe what industry/market needs are to be satisfied, who the targeted customers are, and what resources or capabilities will be used to satisfy these targeted customer needs
Company selected is PepsiCo as the acquiring company and Tofutti as the target company. Key objectives are going to be focused heavily around diversification, expansion, and entry into new markets. Using PepsiCo's global framework to accelerate international growth of the target firm. In the 2018 10K report Tofutti list accelerating their international sales and distribution as a major goal, and this can be seen reflected in their financial statement in the drop in cash on hand and increases in AR. Leveraging PepsiCo's international distribution network will allow the company to address some of the risk items outlined in the 10k report, mainly capital employed, and ability to collect on accounts receivable.