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BY

ASHISH KUMAR

Tobacco Industry The Miller Brewing Company Soft Drink

Cost of acquisition Under Philip Morris Management Without Philip Morris Management Cost of Capital This is the rate of return that a firm would receive if it invested in a diversification . Expertise in marketing Not in line with Tobacco and Beer Forecasting of the market

By the end of 1977, soft drinks were the most popular beverage in US. This made the acquisition of 7-up a more attractive proposal. But by this time, the wide availability of soft drinks meant that the competition was high. And the increasing saturation of market, led to greatly increased competition. This might make it difficult to decide upon the acquisition without full consideration of the financial viability. All the extra costs incurred to boost the brand's sales drove the company into a loss position.

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