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Environment and Financial Analysis of the Food and Beverage

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Analyze the industry environment, using techniques such as industry life cycle analysis and Porter's five forces analysis; the idea is to determine industry attractiveness from the viewpoint of the acquirer (your client). Perform basic financial ratio analysis for several industry members that could be considered acquisition targets.

Industry: Global Food and Beverage Industry
Client company: Cheesecake Factory
Target country: Canada
Considered acquisition targets: The Keg Steakhouse and Bar and Prime Restaurant

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The response addresses the queries posted in 1081 Words, APA References.

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The response addresses the queries posted in 1207 words with references.

//Before scripting about the 'Industry life cycle Analysis', we have to understand the industry environment. Then, we will discuss about the 'Industry Environment Analysis' with the assistance of industry life cycle analysis and porter's five forces analysis. Firstly, we will understand the industry life cycle of the global food and beverage industry at Canada. It will assist in understanding the key acquisition targets for the Cheesecake Factory.//

Industry Environment Analysis

Industry analysis must highlight the industry environment or the industry type to which the industry under scrutiny belongs. It also elaborates the features which the concerned industry type represents. As of today, the food and beverage industry is a global industry. It is on the profitable phase of growth. Increasing number of supermarkets, retail chains and stores are the main reason of the growth of food and beverage industry.

Cheesecake Factory is willing to acquire the Keg Steakhouse & Bar and Prime Restaurant because both are the well known names in their field. There are so many competitors in the food and beverage market. They all are earning a good amount of profit. It is in the growth stage of life cycle so many new companies are also coming to get the benefits (Marketing Management, 2004). To get the advantage of these benefits, client company I.e. Cheesecake Factory is looking for the acquisition of the Keg Steakhouse and Bar & Prime Restaurant.

//After analyzing the Industry life cycle Analysis, we will discuss about the Porter's Five Forces Analysis. It will be discussed by considering the market forces, such as bargaining power of the buyers, threat of new entrants, bargaining power of suppliers, competition among the current players and the threat of substitutes.//

According to Porter' five forces analysis, the competition in the industry is as follows-:

Threat of new entrants - New threats are always a powerful source of competition. In food and beverage industry many new companies like ...

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