P4 Unit 4 Business

Diageo is a business that operates in the beverage industry. To be considered a beverage industry a business must sell beverages. They are based in London which is located in the United Kingdom. They have been in business since 1997 and have a rich heritage before 1997 with other companies. Diageo sells many alcoholic beverages in many countries around the world. They “operate production and distribution facilities that include malting, distilleries, breweries, packaging plants, maturation warehouses, cooperages, vineyards, wineries and distribution warehouses (Diageo Global Supply, 2013)”. They are least admired when it comes to social responsibility on the fortune 500 website.
Business theorist Michael Porter
Diageo is affected by these regulations because they are required to follow them. If they do not follow them and keep updated with new regulations they can be punished by law and the business can be closed. Many of the regulations require licenses and fees. There are no ways around these regulations because they are mandatory to run a business in the beverage industry. Regulations in the United Kingdom give Diageo many options to run a successful business. There are taxes and tariffs that stand as a barrier for Diageo when it comes to
There are many regulations when it comes to product details as well. The price, taxes and safety of the product are also regulations that affect Diageo. Regulations make sure that the product is safe for the environment and the people in the environment. All of these things can and will affect Diageo in the domestic environment. Michael Porter can help Diageo form better relationships with its customers, suppliers and the government who regulate the business, product and its environment. He can show Diageo how to overcome geographical factors like price and product details of other businesses in the same industry. By being better than the competitor Diageo has a better chance to make it in the domestic environment. Michael Porter can help Diageo look at the competitor’s size and trends and see where they lack and overcome the barriers to be better than the competitor. The number and size of the competitor needs to be addressed with Diageo as well by Michael Porter as well. All of these things are things that Michael Porter can do to help Diageo overcome many barriers they face now or will face in the future when it comes to Diageo’s domestic