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Diageo Plc - Case Study Example

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Diageo Plc was a company formed centuries ago. It roots can be traced in the eighteenth century. Since then, the Company has grown to become one of the most influential alcoholic manufacturers in the world. The business produces beers and spirits such as gins, vodkas and scotch…
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Download file to see previous pages At that time (eighteenth century), it was identified mostly with spirit brands like Justerini, Malts of Scotland such as Talisker, Glenkinchie and Lagavulin. In the nineteenth century, the company introduced Johnnie Walker; one of the most popular whiskies to date. In that same century, there was introduction of Smirnoff and subsequently Bailey's. In the twentieth century, the company started getting associated with Captain Morgan rum and eventually adopted it. Ever since, the company has been characterized by numerous innovations and introductions of new alcoholic drinks the world over.
The Diageo Plc Company falls under the food and beverages industry in general and in the distillers sub industry. Therefore all the factors affecting the company will be examined in against the backdrop of this industry. The industry analysis will be done through SWOT and PEST analysis. The former type of analysis is instrumental in identification of the internal and external factors affecting a given company. It is also crucial in identification of the factors impending growth of a particular company. PEST analysis is more useful in determination of the external environment. (United Nations, 2001)
The most outstanding feature about Diageo Plc is its brands. Some of the brands it offers have been around for centuries. This implies that the company has been able to secure brand loyalty. These include Smirnoff, Johnnie Walker and Bailey's. On top of this, the distiller has a huge size with branches all over the world. The advantage of such a large size is that the company can appeal to numerous market segments. Besides this, it can make up for weaknesses in one area with strengths in another country. (Hill, 2005)
The Company also has confidence in the fact that it produces good quality beer. This means that sometimes the product 'sells itself' so to speak. It can also pride itself in the fact that it delivers lots of products in an efficient and fast manner. Actually most bars and pubs in the United Kingdom heavily rely on supplies from the company. Such an arrangement is only possible if the supplier has established a name for itself. This is definitely the case with Diageo.
Another source of strength is the fact that the company promptly caters for its clients through efficient customer care. Responses to customer requirements and needs are done promptly and most of the time this is achieved through cooperation with the marketing and sales team.
The Company has been at the frontline in employment of technological advancements in its production processes. For example, some of its distilleries are up to date in order to speed up the rte of production. On top of this, it is continuously introducing latest bottling technologies. It ...Download file to see next pagesRead More
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