Environmental Analysis of Diageo
Environmental Analysis
MM/590 Contemporary Issues in Leadership and Management
University of Phoenix Online, September 19, 2006
Introduction
"Diageo PLC is a British multinational alcohol company, selling alcohol in 180 countries, with a substantial presence in 30 countries. The company was created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet)" (diageo. com). At that stage, it was a large multinational with interests in food as well as drink. Today, the company has shed most of its food interests to concentrate on alcohol, acquiring new spirit brands. Diageo engages in the manufacture and distribution of spirits, wines, and beer worldwide. With a collection of outstanding brands, Diageo is the world 's leading premium drinks business. The company manufactures its products under names of Smirnoff vodka, Johnnie Walker Scotch whiskeys, Guinness stout, Baileys Original Irish Cream liqueur, J&B Scotch whiskey, Captain Morgan rum, and Tanqueray gin. "Diageo PLC operates in more than 180 markets across the world with over 20,000 employees, a market capitalization of 1.5 billion and turnover of 8 billion" (diageo. com). Diageo projects an image of itself as a clean, friendly and ethically oriented company with a commitment to corporate social responsibility. This includes both a professed concern with the harm alcohol can cause, and statements about what a great service the company is providing by producing such well-loved brands. We have selected Diageo to conduct an environmental scan of the industry and remote environments to identify potential opportunities and threats that may arise in the near term. We will describe and evaluate our findings and provide recommendations for responding to the issues and opportunities that we have found in the environmental scan. Our assessment includes the following:
Availability of substitute products and threats of new entrants and competition
Diageo has long been the
MM/590 Contemporary Issues in Leadership and Management
University of Phoenix Online, September 19, 2006
Introduction
"Diageo PLC is a British multinational alcohol company, selling alcohol in 180 countries, with a substantial presence in 30 countries. The company was created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet)" (diageo. com). At that stage, it was a large multinational with interests in food as well as drink. Today, the company has shed most of its food interests to concentrate on alcohol, acquiring new spirit brands. Diageo engages in the manufacture and distribution of spirits, wines, and beer worldwide. With a collection of outstanding brands, Diageo is the world 's leading premium drinks business. The company manufactures its products under names of Smirnoff vodka, Johnnie Walker Scotch whiskeys, Guinness stout, Baileys Original Irish Cream liqueur, J&B Scotch whiskey, Captain Morgan rum, and Tanqueray gin. "Diageo PLC operates in more than 180 markets across the world with over 20,000 employees, a market capitalization of 1.5 billion and turnover of 8 billion" (diageo. com). Diageo projects an image of itself as a clean, friendly and ethically oriented company with a commitment to corporate social responsibility. This includes both a professed concern with the harm alcohol can cause, and statements about what a great service the company is providing by producing such well-loved brands. We have selected Diageo to conduct an environmental scan of the industry and remote environments to identify potential opportunities and threats that may arise in the near term. We will describe and evaluate our findings and provide recommendations for responding to the issues and opportunities that we have found in the environmental scan. Our assessment includes the following:
Availability of substitute products and threats of new entrants and competition
Diageo has long been the
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