Diageo Research Report

Topics: Informal organization, Organization, Management Pages: 14 (3434 words) Published: March 28, 2012
Research Report on Diageo


Diageo is the leading spirits business in the world. They manage 60% of the volume of the worlds 10 largest premium spirit brands such as Johnnie Walker, Smirnoff, J&B, Baileys, Guinness, Tanqueray and Captain Morgan. Diageo trades in over 180 markets around the world and can be found listed in both the London and New York Stock Exchange. It employs over 20,000 people worldwide and has offices and manufacturing sites in approximately 80 countries. Diageo in Scotland employs 3,500 people approximately and boasts one of Diageo’s largest Spirit Supply centres.

Diageo comes from comes from the Latin words for day 'Dia' and world 'Geo', and at its core they take this to mean that 'Everyday, Everywhere, People celebrate with our brands'.

Diageo live by 5 core values

Passionate about consumers
Freedom to succeed
Proud of what we do
Be the best
Value each other

They constantly champion their values and they are adopted throughout the business across all levels. Their values are at the heart of everything they do and each goal they set.

'At the heart of everything we do are our company values. We stand by them being the set of behaviours that we expect all our people to embrace to further our ambitions for our business, our people and our communities. To demonstrate how serious we are about our values we carry out an annual employee values survey. We ask every one of our people how they believe we are demonstrating our values - as an organisation, as leaders and as teams.' Paul Walsh, Diageo CEO

Question 1

Policies are the rules of how the company conducts business internally; they are a means of communicating requirements with staff and are usually formally documented. Policy also serves numerous other purposes and is used to set the scene across a range of functional areas of the business including, HRM, Finance and Warehousing & Storage.

A goal can be defined as an expectation of the future; something which an organisation strives to achieve. Organisational goals determine things such as:

The nature of inputs and outputs
Performance standards
Basis for planning activities
Directed focus on activities and efforts of employees
Objective-setting and day-to-day policies
Decision-making guidelines
Evaluation of organisational change
Influence on organisational structure and technology
Organisational culture

There are 4 different types of goals:

Consumer – meeting customer needs
Product – differentiation and characteristics
Operational – activities related to outputs, operations and functions Secondary – include staff, local community and social responsibilities

Objectives guide management activity relating to budgeting, action planning, staffing and equipment purchases. Objectives state how management propose to achieve the overall goals and must be SMART. There are 3 categories:


The relationship between goals and objectives can be broken down as follows;

Goals are broad and high level; objectives are narrow and lower level Goals are more general in intent; objectives are more precise based on overall goals Goals can be classed as intangible; objectives can be classed as tangible Goals are aims; objectives are the tasks necessary to complete the aims. Goals can't be validated as is; objectives can be validated

Strategic Management entails setting out an organisation's mission, vision and objectives, and aids in the development of policies and plans. As a result of this, projects and work programmes can then be set up which are designed to achieve the company objectives. Finally, resources can then be allocated to ultimately implement the policies, plans, projects and work programmes. Organisations often use a balanced scorecard[?] (BSC) in order to evaluate business performance and to track progress against objectives. This is a method employed by Diageo which has proven...
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