BSAD 550A – Fall 2011 – Test I
Directions: All students must read the material related to Part I and answer question one and either question two or three (40 points each, 80 points in total). Please answer any two questions in Part II from numbers four through six (60 points each). You should be able to answer each question in about one typed page. Please be direct with your answers.
Please read the following case and answer question one and either question two or three question on the next page. Please be as direct and to-the-point as possible, and remember to use correct grammar and punctuation.
According to a 1996 fiscal report in the Wall Street Journal, venerable Chicago-based Quaker Oats Company was in the midst of a financial downturn caused by serious planning snafus. In particular, Quaker had lost $47.8 million in the second quarter of 1995, largely because of restructuring charges necessitated by its Snapple division’s poor performance and the company’s unsuccessful efforts to improve overseas sales. Quaker did not expect 1996 to be any better.
Throughout the 1900’s Quaker Oats was in many businesses including Aunt Jemima pancake flour, Cap’n Crunch cereals, Fisher-Price toys, restaurants and candies. Until 1990 Quaker was still adding new products – everything from clothiers and opticians to Stokely-Van Camp, Gatorade, and Gaines dog food. A prime acquisition was Anderson Clayton & Company, a Houston food-products company that boasted such popular brands as Seven Seas salad dressings, Chiffon margarine, and Igloo ice chests. Then a downturn in 1990 convinced management to refocus the company on food.
Quaker implemented this new strategy by increasing its advertising budget, reformulating its dog foods, and launching new products. Determined to emphasize its core food categories, the company in 1993 sold Sutherland Foods, and purchased the Chico-San rice cake brand....