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ally the company was engaged in many businesses but with passage of time, it concentrated on the beverage business and divested other business like Pillsbury and Burger King. At present the company’s portfolio consist of mainly alcohol based beverages.
Presently the company is operating many major strategic business units (SBUs) like spirits, Beer and Wine. Among them the most extended one is the spirit SBU because it comprises of many sub units like Scotch whisky, Vodka, Ready to drink, Liqueurs, Whiskey, Rum, Gin and Tequila. To understand why spirit SBU is so vital for the company, its last year’s sales break up has to be undertaken.
As per the Diageo’s annual report 2007-08, the company’s is to focus on its premium drinks as these are the major source of income. In the last few years, the company’s revenue has increased marginally, but operating expense has also gone high. Thus Diageo has made a strategy to enhance its operating profit along with growth in organic sales. From the very beginning, the company has followed an aggressive acquisition strategy. At present the company has its operation in different part of the world, where they have strategic partnership with many other players of this industry. When a company plans for enhancing the profitability, its main motto remains increasing the shareholders value.
In the last year certain changes has came in the consumption patter in alcoholic beverages in different part of the world, hence the company will target the growing market of alcoholic beverages in BRIC countries. Undertaking all these facts and figures, the company has planned to continue its cost cutting strategy. Diageo will continue to operate under four business areas, it will develop its local brands and to overcome the growing pressure from governments, it will come forward and will promote responsible drinking of alcohol, also participate in reducing the misuses of alcohol (Diageo-b, 2005).
To analyse how successful were the
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Through understanding the environment, it will be possible to minimize the threats and take advantage of the opportunities that WRSX faces. The Five Forces framework is also useful in coming up with strategies that WRSX can use in relation to its external environment, which consists of five major factors that include industry competitors, substitute competition, supplier power, buyer power, and entry barriers.
Strategic management entirely focuses on the win-win approach which implies how a particular organization can achieve competitive advantage in its area of service (Gupta et. al., 2007). Previously positioning based view was dominating the strategic management in most of the organizations but in 1980’s resource based view was introduced considering the ever changing customer demands in the advancing business scenario.
Second, hedging against catastrophic or extreme risk may reduce the likelihood and the costs of distress, especially for smaller businesses.
Third, hedging against risks may reduce the under investment problem prevalent in many firms as a result of risk averse managers and restricted capital markets.
Though originally formed with idea of selling books through the web to the mass audience through the internet, it has now expanded with passage of time and as a specific strategic choice, to sell any item with a capital "A" online and has added a wide range of items.
Yum! Brands owns 3,400 multi-branded restaurants offering consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver's brands. In 2005 Yum! opened an average of 3 new restaurants each day outside the USA.
Strategic management also involves evaluating the progress of strategy execution as well as making the necessary adjustments (Thomson 2002).
Thomson states two important reasons why strategic management is important for the success of a firm. First, strategic management is crucial as "there is a compelling need for managers to proactively shape how the company's business will be conducted (Thomson 2002)." Strategic management becomes a roadmap that guides the company in achieving its goals.
It has its presence in several countries across the globe including, Americas, Central Asia, Africa and Europe. The Barclaycard UK, operates in tandem with other parts of the flagship company Barclays including UK retail banking,
of competition but has had to dictate and shape organisations in terms of what consumers wants, how and when they want it and what they are prepared to pay for it (Hagan 1996:1).
Kanter (1995:71) on his work of “Mastering Change” argues that success in the present day
In the above country, the severe failures in managing risks related to banking activities led to the recession of 2008, which still negatively influences markets worldwide. The performance and the challenges of the USA banking industry are
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