In 1986, Pepsi announced its intention to buy 7-Up and Coca-Cola proposed buying Dr. Pepper. The year-end market shares in 1985 held by the largest firms in the industry were as follows: Coca Cola 38%; PepsiCo 29%; 7-Up 6%; Dr. Pepper 5%; RJ Reynolds (Canada Dry & Sunkist) 3%; Royal Crown Cola 3%; P&G(Orange Crush & Hires Root Beer) 2%. The remaining firms share the last 14% of the market. Assume they each have a market share of 1%.
* Calculate the HHI for the industry as structured at the end of 1985
* Calculate the post-merger HHI if only PepsiCo had bought 7-Up
* Calculate the post-merger HHI if only Coca Cola had bought Dr. Pepper
* How would you expect the Justice Department to respond to each merger considered separately? Together? (Refer to Notes on Concentration Ratios)
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In 1986, Pepsi announced its intention to buy 7-Up and Coca-Cola proposed buying Dr. Pepper. The...
Ch111 Practice Exercises Svod 01 points Pepsi 27 Coca-Cola 42.5 ebook Print References Dr Pepper Snapple Group 173 Others 9.2 Royal Crown 4.0 Instructions: Round your responses to one decimal place a. What is the concentration ratio in the U.S. soda market? percent b. If Dr Pepper Snapple split into two equal-sized firms, what is the new concentration ratio? Dt] percent
Pepsi 27 points Coca-Cola 42.5 eBook Print References Dr Pepper Snapple Group 17.3 Others 9.2 Royal Crown 4.0 Instructions: Round your responses to one decimal place. a. What is the concentration ratio in the US soda market? 100 percent b. If Dr Pepper Snapple split into two equal-sized firms, what is the new concentration ratio? 100 percent
Coca-cola in India case. 1. What aspects of US culture and of Indian culture may have been causes of Coke's difficulties in India? 2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indians of Coke and other MNCs? 3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make? 4. How might companies like Coca-Cola and PepsiCo demonstrate their commitment...