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Diageo plc description.

A major U.K.-based multinational is reevaluating its leverage policy as it restructures its business. The treasury team models the tradeoffs between the benefits and costs of debt financing, using Monte Carlo simulation to estimate the savings from the interest tax shields and expected financial distress costs under several sets of leverage policies. The group treasurer (CFO) must decide whether and how the simulation results should be incorporated into a recommendation to the board of directors and, more generally, what recommendation to make regarding the firm's leverage policy.

Case Description Diageo plc

Strategic managment tools used in case study analysis of diageo plc, step 1. problem identification in diageo plc case study, step 2. external environment analysis - pestel / pest / step analysis of diageo plc case study, step 3. industry specific / porter five forces analysis of diageo plc case study, step 4. evaluating alternatives / swot analysis of diageo plc case study, step 5. porter value chain analysis / vrio / vrin analysis diageo plc case study, step 6. recommendations diageo plc case study, step 7. basis of recommendations for diageo plc case study, quality & on time delivery.

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Case Analysis of Diageo plc

Diageo plc is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Diageo plc is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Diageo plc case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Diageo plc will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Diageo plc case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Diageo plc, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Diageo plc case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Diageo plc case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Diageo plc

Step 1 – Problem Identification of Diageo plc - Harvard Business School Case Study

The first step to solve HBR Diageo plc case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Leverage Simulation is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Leverage Simulation, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Diageo plc. The external environment analysis of Diageo plc will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Diageo plc case study. PESTEL analysis of " Diageo plc" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Diageo plc macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Diageo plc

To do comprehensive PESTEL analysis of case study – Diageo plc , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Diageo plc

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Diageo plc ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Leverage Simulation is operating, firms are required to store customer data within the premises of the country. Leverage Simulation needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Diageo plc has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Leverage Simulation in case study Diageo plc" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Leverage Simulation in case study “ Diageo plc ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Leverage Simulation in case study “ Diageo plc ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Diageo plc ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Leverage Simulation can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Diageo plc case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Leverage Simulation needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Diageo plc

Social factors that impact diageo plc, technological factors that impact diageo plc, environmental factors that impact diageo plc, legal factors that impact diageo plc, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: diageo plc case study solution.

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Harvard Case Studies

Diageo plc Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Diageo plc Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

Nature of organization
Nature if industry in which organization operates.
External environment that is effecting organization
Problems being faced by management
Identification of communication strategies.
Any relevant strategy that can be added.
Control and out-of-control situations.

When reading the case for second time, following points should be considered:

Decisions needed to be made and the responsible Person to make decision.
Objectives of the organization and key players in this case.
The compatibility of objectives. if not, their reconciliations and necessary redefinition.
Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Diageo plc:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Diageo plc and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Diageo plc HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Diageo plc is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

Advantages of the organization
Activities of the company better than competitors.
Unique resources and low cost resources company have.
Activities and resources market sees as the company’s strength.
Unique selling proposition of the company.

WEAKNESSES:

Improvement that could be done.
Activities that can be avoided for Diageo plc.
Activities that can be determined as your weakness in the market.
Factors that can reduce the sales.
Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

Good opportunities that can be spotted.
Interesting trends of industry.
Change in technology and market strategies
Government policy changes that is related to the company’s field
Changes in social patterns and lifestyles.
Local events.

Following points can be identified as a threat to company:

Company’s facing obstacles.
Activities of competitors.
Product and services quality standards
Threat from changing technologies
Financial/cash flow problems
Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

Precise and verifiable phrases should be sued.
Prioritize the points under each head, so that management can identify which step has to be taken first.
Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
Make sure that points identified should carry itself with strategy formulation process.
Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Diageo plc Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative. It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
Analyze the opportunities that would be happen due to the change.
Analyze the threats and issues that would be caused due to change.
Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

Next political elections and changes that will happen in the country due to these elections
Strong and powerful political person, his point of view on business policies and their effect on the organization.
Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
Change in Legislation and taxation effects on the company
Trend of regulations and deregulations. Effects of change in business regulations
Timescale of legislative change.
Other political factors likely to change for Diageo plc.

ECONOMICAL:

Position and current economy trend i.e. growing, stagnant or declining.
Exchange rates fluctuations and its relation with company.
Change in Level of customer’s disposable income and its effect.
Fluctuation in unemployment rate and its effect on hiring of skilled employees
Access to credit and loans. And its effects on company
Effect of globalization on economic environment
Considerations on other economic factors

SOCIO-CULTURAL:

Change in population growth rate and age factors, and its impacts on organization.
Effect on organization due to Change in attitudes and generational shifts.
Standards of health, education and social mobility levels. Its changes and effects on company.
Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

Social attitudes and social trends, change in socio culture an dits effects.
Religious believers and life styles and its effects on organization
Other socio culture factors and its impacts.

TECHNOLOGICAL:

Any new technology that company is using
Any new technology in market that could affect the work, organization or industry
Access of competitors to the new technologies and its impact on their product development/better services.
Research areas of government and education institutes in which the company can make any efforts
Changes in infra-structure and its effects on work flow
Existing technology that can facilitate the company
Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Diageo plc Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

THREAT OF NEW ENTRANTS:
as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
Barriers to entry that includes copy rights and patents.
High capital requirement
Government restricted policies
Switching cost
Access to suppliers and distributions
Customer loyalty to established brands.
THREAT OF SUBSTITUTES:
this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
Price performance of substitute
Switching costs of buyer
Products substitute available in the market
Reduction of quality
Close substitution are available
DEGREE OF INDUSTRY RIVALRY:
the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
Competitive advantage
Continuous innovation
Sustainable position in competitive advantage
Level of advertising
Competitive strategy
BARGAINING POWER OF BUYERS:
it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
Bargaining leverage
Switching cost of a buyer
Buyer price sensitivity
Competitive advantage of company’s product
BARGAINING POWER OF SUPPLIERS:
this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
Input differentiation
Impact of cost on differentiation
Strength of distribution centers
Input substitute’s availability.

STEP 7: VRIO Analysis of Diageo plc:

Vrio analysis for Diageo plc case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Diageo plc company’s activities and resources values. RARE: the resources of the Diageo plc company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE : the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE : resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Diageo plc) must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Diageo plc Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Diageo plc Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

Improve profitability
Increase sales, market shares, return on investments
Customer satisfaction
Brand image
Corporate mission, vision and strategy
Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Diageo plc Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Diageo plc Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

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Diageo plc case study analysis & solution, harvard business case studies solutions - assignment help.

Diageo plc is a Harvard Business (HBR) Case Study on Finance & Accounting , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Finance & Accounting Case Study | Authors :: George Chacko, Peter Tufano, Joshua Musher

Case study description.

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the finance & accounting.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Finance & Accounting. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Diageo plc HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

Marking out the protagonist and key players in the case study from the very start.
Drawing a motivation chart of the key players and their priorities from the case study description.
Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Diageo plc Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Diageo plc

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

Zero down on the central problem and two to five related problems in the case study.
Do the SWOT analysis of the Diageo plc . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Diageo plc
SWOT analysis will also provide a priority list of problem to be solved.
You can also do a weighted SWOT analysis of Diageo plc HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Diageo plc

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Diageo plc

Another way of understanding the external environment of the firm in Diageo plc is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Diageo plc Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

Detailed understanding of the case,
Clarity of HBR case study fundamentals,
Analyzed case details based on those fundamentals and
Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Diageo plc case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Diageo plc case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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January 2001 (Revised August 2003)
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The Price of Immediacy

Faculty Research

Pricing Liquidity: The Quantity Structure of Immediacy Prices

May 2005 (Revised February 2006)

Introduction to Interest Rate Options

The Price of Immediacy By: George Chacko, Jakub W. Jurek and Erik Stafford
Pricing Liquidity: The Quantity Structure of Immediacy Prices By: George Chacko, Jakub W. Jurek and Erik Stafford
Introduction to Interest Rate Options

Marketing Process Analysis

Segmentation, targeting, positioning, marketing strategic planning, marketing 5 concepts analysis, swot analysis & matrix, porter five forces analysis, pestel / pest / step analysis, cage distance analysis international marketing analysis leadership, organizational resilience analysis, bcg matrix / growth share matrix analysis, block chain supply chain management, paei management roles, leadership with empathy & compassion, triple bottom line analysis, mckinsey 7s analysis, smart analysis, vuca analysis ai ethics analysis analytics, diageo plc case study solution & analysis / mba resources.

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Introduction to case study solution

EMBA Pro case study solution for Diageo plc case study

At EMBA PRO , we provide corporate level professional case study solution. Diageo plc case study is a Harvard Business School (HBR) case study written by George Chacko, Peter Tufano, Joshua Musher. The Diageo plc (referred as “Leverage Simulation” from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. It also touches upon business topics such as - Value proposition, Costs. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set.

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Case Description of Diageo plc Case Study

Case Authors : George Chacko, Peter Tufano, Joshua Musher

Topic : finance & accounting, related areas : costs, what is the case study method how can you use it to write case solution for diageo plc case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Diageo plc Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Diageo plc

We write Diageo plc case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. We try to cover all the bases in the field of Finance & Accounting, Costs and other related areas.

Objectives of using various frameworks in Diageo plc case study solution

By using the above frameworks for Diageo plc case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Leverage Simulation (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Leverage Simulation enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Diageo plc

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Leverage Simulation internal factors, while opportunities and threats arise from developments in external environment in which Leverage Simulation operates. SWOT analysis will help us in not only getting a better insight into Leverage Simulation present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- High customer loyalty & repeat purchase among existing customers – Leverage Simulation old customers are still loyal to the firm even though it has limited success with millennial. I believe that Leverage Simulation can make a transition even by keeping these people on board.

- Experienced and successful leadership team – Leverage Simulation management team has been a success over last decade by successfully predicting trends in the industry.

- Little experience of international market – Even though it is a major player in local market, Leverage Simulation has little experience in international market. According to George Chacko, Peter Tufano, Joshua Musher , Leverage Simulation needs international talent to penetrate into developing markets.

- Leverage Simulation business model can be easily replicated by competitors – According to George Chacko, Peter Tufano, Joshua Musher , the business model of Leverage Simulation can be easily replicated by players in the industry.

Opportunities

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Leverage Simulation to tie up with local suppliers and logistics provider in international market. Social media growth can help Leverage Simulation to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Leverage Simulation is in prime position to tap on those opportunities and grow the market share.

- Growing dominance of digital players such as Amazon, Google, Microsoft etc can reduce the manoeuvring space for Leverage Simulation and put upward pressure on marketing budget.

- Customers are moving toward mobile first environment which can hamper the growth as Leverage Simulation still hasn’t got a comprehensive mobile strategy.

Once all the factors mentioned in the Diageo plc case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Diageo plc Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Leverage Simulation operates in. George Chacko, Peter Tufano, Joshua Musher provides extensive information about PESTEL factors in Diageo plc case study.

Political Factors

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

Economic Factors

- According to George Chacko, Peter Tufano, Joshua Musher . Leverage Simulation should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

- Inflation rate is one of the key criteria to consider for Leverage Simulation before entering into a new market.

Social Factors

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Leverage Simulation before launching any new products as they will impact the demand of the products.

- Demographic shifts in the economy are also a good social indicator for Leverage Simulation to predict not only overall trend in market but also demand for Leverage Simulation product among its core customer segments.

Technological Factors

- Artificial intelligence and machine learning will give rise to importance of speed over planning. Leverage Simulation needs to build strategies to operate in such an environment.

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Leverage Simulation.

Environmental Factors

- Environmental regulations can impact the cost structure of Leverage Simulation. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Leverage Simulation branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Intellectual property rights are one area where Leverage Simulation can face legal threats in some of the markets it is operating in.

- Health and safety norms in number of markets that Leverage Simulation operates in are lax thus impact the competition playing field.

What are Porter Five Forces

Porter Five Forces Analysis of Diageo plc

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Diageo plc

VRIO stands for – Value of the resource that Leverage Simulation possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Leverage Simulation. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Diageo plc

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Leverage Simulation relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Leverage Simulation. This will help in answering – the related costs and various sources of competitive advantages of Leverage Simulation in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Diageo plc

BCG Growth Share Matrix is very valuable tool to analyze Leverage Simulation strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Leverage Simulation can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Leverage Simulation business unit but also Leverage Simulation - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Diageo plc case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Diageo plc

4p marketing analysis of diageo plc, porter five forces analysis and solution of diageo plc, porter value chain analysis and solution of diageo plc, case memo & recommendation memo of diageo plc, blue ocean analysis and solution of diageo plc, marketing strategy and analysis diageo plc, vrio /vrin analysis & solution of diageo plc, pestel / step / pest analysis of diageo plc, swot analysis and solution of diageo plc, references & further readings.

George Chacko, Peter Tufano, Joshua Musher (2018) , "Diageo plc Harvard Business Review Case Study. Published by HBR Publications.

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Case study: Diageo

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The story: After a series of mergers, demergers and acquisitions, the management of Diageo, the conglomerate formed by the 1997 merger of Guinness and Grand Met, made a strategic decision to focus on premium alcohol drinks. Diageo was in charge of an expanding and wide-ranging collection of brands, some of which had broad appeal across many countries while others had more regional appeal, sometimes limited to just a few markets.

The challenge: After both organic growth and acquisitions, three key dilemmas emerged by 2002. First, how to manage brands with significantly different appeal, such as Guinness, a brand with strong Irish roots but huge global appeal, or Buchanan’s, the leading Scotch whisky in Latin America. Second, how to rejuvenate tired brands and third, how to improve the market share of the most successful brands, such as Captain Morgan, J & B, Smirnoff and Johnnie Walker.

The initial strategy: To help managers maintain focus and allocate resources, Diageo developed three brand classifications: global priority, local priority and category.

The global priority brands were the big sellers that were popular across a number of important markets and received the lion’s share of promotional resources and attention; by 2010, this figure was £1.3bn. Each of these brands was marketed consistently across all relevant markets and under the direction of a global brand team.

Local priority brands were those popular in specific geographic areas. They were managed at the regional level, with executives adapting the marketing to suit local needs.

Category brands played specific roles within a sector; they might be aimed at a particular type of consumer or at a particular price point. Promotion and positioning decisions were made by local executives.

What happened next: The three groupings were flexible enough to change: global priority brands become “strategic brands”, changing to reflect the fact that while all key brands were not necessarily global, they were very much international. This group increased from eight to 14, with brands such as Crown Royal, Windsor and Buchanan’s migrating into this new category to reflect their increasing stature.

In addition, Diageo developed ways to deepen its understanding of consumers, including in emerging markets. When sales of whisky brands declined because Scotch’s image failed to appeal to younger people, the brands were rejuvenated by replacing Scottish cues, such as tartan and bagpipes, with contemporary images more in tune with the lifestyle of consumers in the developing countries. Hence, the move to link Johnnie Walker to Formula One racing.

Diageo also strengthened its focus on the consumer, including putting significant resources including in-house specialists into consumer planning globally.

One result of this planning capability was Cîroc, a grape-based vodka launched in 2003 and aimed at affluent drinkers with buying power and a taste for premium brands.

Meanwhile, emerging markets offer new growth opportunities for Diageo, thanks to increases in both adult populations and an awareness of international spirits brands. This provides opportunities to promote brands in all categories.

In addition, consumers are increasingly willing to switch from illicit alcohol to legal, branded versions. Diageo’s strategic response has often been to promote the safety and legal nature of branded alcohol and to develop a better supply network.

The results: Diageo has become the world’s leading premium drinks business by volume, net sales and operating profit. It makes and markets eight of the world’s 20 best-selling spirits brands.

Key lessons: Having inherited or acquired a large number of disparate brands, Diageo solved the marketer’s global vs local dilemma by segmenting its brands in a way that helped the business prioritise its resources effectively at a crucial stage of its evolution.

A subsequent focus on understanding consumer lifestyles, increasingly in emerging markets, has helped the company’s growth, whether in adjusting established brands or acquiring new ones.

The writer is professor of organisational performance at Henley Business School and co-editor of the Journal of Strategy and Management

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International Edition

How Diageo Became One Of The World's Largest Alcohol Producers

Table of contents.

Diageo's story did not begin until 1997 when Guinness merged with food and beverage wholesaler Grand Metropolitan PLC. The $15.8 billion deal went smoothly and the two companies merged under the Diageo name.

The two companies had already brought dozens of brands under one umbrella with the merger, but launching additional brands, especially beverages, has become one of the company's key missions. The Diageo Group includes global brands such as Johnny Walker whiskey, Guinness beer, Ciroc vodka, Captain Morgan rum, and Aviation Gin.

A few key facts about Diageo:

Diageo employs 28,025 people around the world.
Diageo generated net sales of GBP 12.733 billion in 2021.
The company sold more than 4 million units of product .
The group’s reported profit was uplifted by 6% .
Diageo is present in 180 countries through its brands.
The company holds more than 200 different brands.

A History Of Two Brands

Diageo's history goes back much further than the company's founding in 1997 when the Guinness brand merged with Grand Metropolitan PLC.

Guinness Brewery

The father of Arthur Guinness, born in 1725, was a brewer. He learned the trade from him and established his brewery in Celbridge. In 1759, he leased an acre and a half of land near St. James's Gate on River Liffey in Dublin for 9,000 years. Pale and ale beers were not very popular in Ireland; whiskey and gin were, on the other hand, much more common, so he decided to make black beer. He created his black beer using secret ingredients, and it was a huge success. By 1769, the beer was exported to Great Britain. In 1775, the town council accused him of using more water than allowed for brewing. But Guinness would do anything to defend his brewery and fought back. After his death, his successors continued to run the business, and the brand has since become a symbol of Ireland.

Throughout its history, the beer has been produced in only three varieties: Porter or Single, Double or Extra, and Foreign Stout, which was destined for export.

In 1868, it was among the first three major breweries, with more than 350,000 barrels. By 1876, it had produced nearly 780,000 barrels. In October 1886, Guinness became a public company with average sales of over one million barrels per year. All this was achieved without advertising or discounts. The company was worth £6 million at the time, and the shares were oversubscribed by twenty times the issue price so that the share price immediately rose by 60% on the first day of trading.

Over the years, numerous quality control procedures were introduced, including those pioneered by William Sealy Gosset - under the pseudonym Student - in 1899, which later became known as the Student t-distribution and Student t-test. At the same time, the company was generous to its employees, distributing one-fifth of its total income to its 5,000 employees in 1907.

By 1914, the company had sold over 2.5 million barrels of beer, representing 10% of the British market at the time. In 1930, it was one of the seven largest companies in the world. In the early 1960s, the company switched from wooden to aluminum kegs. Sales declined in the 1970s, so the original recipe was changed to use pale malt and the process was refined with isomerized hop extracts. In 1986, the company was renamed Distillers Company, which also made it a controlling body in the United Kingdom.

In 1997, Guinness merged with Grand Metropolitan and continued production under the Diageo name, although it remained a separate entity and retained all rights and trademarks for its products.

In 2005, the London brewery closed and all production and distribution were moved to Dublin. Today it is distributed in over 120 countries.

Grand Metropolitan PLC

MRMA Ltd (short for Mount Royal Metropolitan Association) was founded in 1934 as a hotel business. Maxwell Joseph founded Grand Hotels (Mayfair) Ltd. after World War II and MRMA merged with the company in 1957, the merged company group grew rapidly. A public offering of the company was completed in 1961.

From the accommodation market, it was a natural step forward to open toward catering. By 1967, it acquired Bateman Catering and by 1968, Midland Catering. The company then purchased Express Dairies in 1969, Berni Inns, and Mecca bingo halls in the next year.

Following this, it entered the brewing business by purchasing Truman, Hanbury & Buxton in 1972 and Watney Mann in 1973. Through these new acquisitions, the group held onto quite a few alcoholic beverage brands, including J&B whisky, Baileys Irish Cream, Gilbey's gin, Piat wine, and Croft sherry, and Smirnoff vodka. To reflect the change in direction and the rapid expansion of the company, it was renamed Grand Metropolitan in 1973.

MRMA Ltd (short for Mount Royal Metropolitan Association) was founded in 1934 as a hotel company. Maxwell Joseph established Grand Hotels (Mayfair) Ltd after World War II and MRMA merged with it in 1957, the merged group of companies grew rapidly. Grand Metropolitan Hotel Limited was listed on London Stock Exchange in 1961 and changed its name to Grand Metropolitan Hotel Ltd. in 1962.

From the accommodation market, it was a natural step to turn to the hospitality industry. By 1967, the company acquired Bateman Catering and in 1968 Midland Catering. The company bought Express Dairies, Berni Inns in 1969, and Mecca's bingo halls the following year.

It then entered the brewing business, acquiring Truman, Hanbury & Buxton in 1972 and Watney Mann in 1973. Through these new acquisitions, the group held on to a number of alcoholic beverage brands, including J&B Whisky, Baileys Irish Cream, Gilbey's Gin, Piat Wine, and Croft Sherry, and Smirnoff Vodka. To reflect the company's change in direction and rapid expansion, it was renamed Grand Metropolitan in 1973.

The 80s was heavy in M&A and company selling activities for Grand Met:

In 1980, it acquired US tobacco and drinks company Liggett Group, which was later sold to Bennett S. Lebow.
Warner Holidays and Intercontinental Hotels Corporation were bought by the company in 1981.
As a result of the 1987 acquisition of Heublein wines and spirits from RJR Nabisco, Grand Met became one of the largest producers of wine and spirits in the world and became the owner of the Smirnoff brand.
Also in 1987 the company withdrew from catering when it disposed of its catering division by way of a management buyout, creating Compass Group. In late 1988 more than 700 pubs, owned by Grand Met at the time, were sold to different professional investors and operator companies. As the next step in updating the company’s portfolio of products and services, Intercontinental Hotels were sold to Saison Group.
By selling these assets, it was able to expand into the betting market by purchasing one of the most well-known brands, William Hill.
Through the buyout of the Pillsbury Company and its Burger King chain in 1988, Grand Metropolitan entered the fast food industry, later acquiring the Wimpy chain.
In 1990 the company sold the brewers Samuel Webster's and Ushers of Trowbridge in 1991.

In the following years, the company slowly closed down its pub operating division, selling more than 20,000 pubs it owned and operated through its previously acquired businesses.

The largest merger at the time

Even though the companies, Guinness and Grand Metropolitan were rivals for years, it was the friendship of their leaders that made the idea for the merger possible. $15.8 billion was a record amount at the time, making the company the seventh-largest drinks and food holding organization globally.

In addition to Burger King and Pillsbury Co., Grand Met also brought Smirnoff vodka and J&B whiskey in the combined company, while Guinness brought its stout, Johnnie Walker whiskey, and Gordon's gin under the umbrella. Haagen-Dazs ice cream and Green Giant vegetables were also part of Grand Metropolitan.

Analysts see synergies between the two companies' products and geographic scope, as well as the potential for other mergers among large food and liquor producers. As investors rejoiced over the news, their stocks rose. In London, Grand Met shares rose by $1.23 to $9.57, while Guinness’s share price increased by $1.39 to $9.75.

With the proposed stock swap, Grand Met shareholders gained control over 52.7% of the new company, while Guinness shareholders had the rest. Shareholders also received cash payments of $3.9billion along with shares in the new company.

Four divisions have been created in the new company:

United Distillers and Vintners, combining the liquor and wine operations
Burger King
Guinness Brewing Worldwide

There were about 2,000 layoffs among the 20,000 jobs at the companies' liquor businesses. Total employment for the two firms in 1997 was 85,000.

Cleaning up the portfolio

In 2002, Diageo sold one of the companies brought in the holding by Grand Metropolitan - Burger King. The consortium of Texas Pacific Group, Bain Capital Partners, and Goldman Sachs Capital Partners signed the acquisition deal, which cost them $1.5 billion. Approximately $86 million was paid in assumed debt, while $212.5 million was settled by subordinated debt - both in cash. Since 2000, Digieo had been trying to sell Burger King to rid itself of a struggling business so it could concentrate on its core beverage business.

A previous agreement between Diageo and the buyout firms included specific performance targets for Burger King. McDonald's largest rival failed to meet these objectives and potential buyers pulled out.

Key takeaways

The two companies that make up Diageo, Guinness and Grand Metropolitan, built more than just a well-known brand. Both were holding companies that effectively developed brands in different and overlapping markets.

Guinness focused exclusively on alcoholic beverages and, in addition to its brewery, repeatedly acquired beverage companies that complemented its existing portfolio.

The Grand Metropolitan took a different approach, initially offering accommodation services before entering the food and beverage business. However, both markets have complimented the hotel's product range very well.

While the merger was possible because of the friendly relationship between the managers, it was a very deliberate move by the two companies. After all, in the food and beverage market, a larger portfolio also means faster and easier sales, making it much easier for the new Diageo company to get onto the shelves of stores, restaurants, and hotels.

The period that followed was one of product streamlining, as the merged network of companies owned hotels and food organizations such as Burger King. To take full advantage of product synergies, the company had to sell the "redundant" parts of its business. The refreshed portfolio performed much better.

Acquisition Strategy

As we showed in the first chapter, the two giant companies that formed the holding company did not come empty-handed, but Diageo has accelerated the pace of acquisitions since the merger.

Since the early 2000s, Diago has been especially active in acquiring established and new businesses on the beverages market. A list of its M&A activity:

Seagram's spirits and wine businesses were acquired by Diageo in 2001.
For $100 million, Diageo purchased fifty percent of the Don Julio Tequila brand from Jose Cuervo during 2003.
A deal worth US$2.1 billion was reached in February 2011 for Diageo to acquire Mey Icki, a Turkish liquor company.
Diageo acquired Ypióca, Brazil's largest selling premium cachaça brand, for £ 300 million in May 2012.
Diageo announced in June 2012 that it would invest $1 billion over the next five years in Scotch whisky production. One new distillery would be constructed, and several existing ones would be expanded, increasing production overall by 30 to 40 percent. Johnnie Walker's original plant in Kilmarnock had closed its doors by March of that year, so they could not reuse that location for the new plant.
Diageo acquired a 53.4% stake in Indian spirits company United Spirits in November 2012 for £1.28 billion.
Diageo has owned a majority stake in the parent company since 2011, which it acquired completely in 2013.
José Cuervo acquired full ownership of the Don Julio tequila brand and Bushmills Irish whiskey for $408 million from Diageo in November 2014.
United National Breweries (UNB) is a South African brewery owned by Diageo. In April 2015, Diageo acquired 100 percent of UNB, but the company later decided to sell it.
Treasury Wine Estates bought Diageo's wine business in October 2015. Some brands were sold separately, such as Navarro Correas and Chalone Vineyard.
In 2015, Stauning, a Danish whisky brand, announced an investment of US$10 million from Diageo to allow it to expand production.
Campari Group purchased Grand Marnier, cognac, and bitter orange liqueur, in March 2016.
Maryland's Baltimore County has been selected as the site of a Guinness brewery and tourist attraction. As many as 300,000 visitors could be hosted each year at the brewery, which could create 70 new jobs.
Diageo acquired the Casamigos brand of tequila in June 2017 - a super-premium tequila from the US.
A limited-edition bottle of Diageo's 12-year-old Black Label blended whisky, Jane Walker, instead of Johnnie Walker, went on sale in February of 2018. A striding woman appeared on the label instead of the usual top-hatted man.
Diageo sold 11 brands including Seagram's 83, Seagram's VO, Popov vodka, Booth's Gin, Goldschläger, Yukon Jack, and Sambuca to the Sazerac Company for about $550 million in November 2018.
An offer that Diageo made during February increased its stake in Chinese baijiu company Sichuan Shuijingfang Company Limited (SJF) to almost 70%.
A non-alcoholic spirits company, Seedlip, was purchased by Diageo in August 2019.
Diageo paid $5 million to settle charges that the company pressured distributors to purchase more products than demand to meet performance targets brought by the US Securities and Exchange Commission.

Ryan Reynolds and the Aviation Gin

A brand of gin, Aviation American Gin was developed by Christian Krogstad and Ryan Magarian in Portland, Oregon, in 2006. As an American dry gin, it has a less strongly juniper-flavored taste profile than some other gins. It contains seven flavors: cardamom, juniper, sweet and bitter orange peel, lavender, coriander, Indian sarsaparilla, and anise.

Bottled at 42% alcohol, Aviation American Gin is pot distilled twice. In addition to its nationwide distribution in the United States, the product reaches 15 other countries, including Canada, Spain, the UK, Ireland, France, Russia, Italy, Germany, the Netherlands, and Australia. Blue-label wine bottles were once used for this product, but the new packaging, introduced in 2013, represents the Art Deco period with a silver cap and a black label.

The distillery sold the brand to New York's Davos Brands, LLC, in 2016, but House Spirits will continue to produce the gin in Portland, Oregon. Davos sold a stake to Hollywood actor Ryan Reynolds in 2018.

In 2020, Aviation was sold to Diageo for $600 million , while Reynolds still maintains an ongoing ownership interest in the company. The actor takes advantage of his popularity and uses every opportunity to promote Aviation Gin in interviews, in his films, and on his social media profiles.

George Clooney and his tequila company

Casamigos Tequila was not launched by Clooney and Gerber for financial gains. The long-time friends spent a great deal of time in Mexico while building their neighboring vacation homes - and drank tequila together often. The team found a distiller in Jalisco, Mexico, and left a long list of requirements of what kind of tequila they wish to buy and drink. Casamigos, which Gerber and Clooney came up with, was never meant for public consumption and served to family and friends for the next two years.

After two years, however, the manufacturer contacted them, claiming that they could no longer maintain "sample" status because of the quantity ordered (a thousand bottles a year would have been suspicious). So the founders had to make a decision: either give up their passion for tequila (but at least produce less of it) or acquire a license and market the high-quality drink.

Business was so good that Diageo almost immediately set its eyes on the company and offered $1 billion for it , apparently largely because of the popularity of George Clooney. Of that, $700 million was paid immediately, with the remaining $300 million contingents on performance.

It is no coincidence that we have devoted a separate chapter to Diageo's M&A activities, as they represent an important strategic element of the Group. The annual report shows that profits would continue to grow even without them, with organic profit growth of more than 17%. At the same time, continued acquisitions, albeit with higher risk, have enabled the Diageo team to achieve a profit of almost 75% in 2021, for example.

History shows that one of the company's main tasks since its inception has been to find smaller beverage brands that are still in the early stages of significant growth and that can bring great success to the group by leveraging the capital, marketing, and, above all, distribution tools that Diageo provides.

In recent years, a new trend has emerged: the acquisition of companies co-owned by well-known personalities. Diageo has not only bought a market, a profit, a new product, and a new brand, but for a handsome sum, it has also allowed well-known players to participate in marketing. It can be assumed that neither George Clooney nor Ryan Reynolds will be leaving the company in the foreseeable future, so they can also benefit from the considerable sales potential.

And the acquisition frenzy hasn't stopped in the COVID -19 period, with Diageo completing 3 acquisitions last year. According to Tracxn, Loyal 9 Cocktails, Lone River Beverage Company, and Chase Distillery were also acquired - all in non-public value deals.

Strategy And Operations

Overall strategy and the company’s key objectives.

There is an obvious potential for growth in the beverage alcohol sector due to demographics and economics. The goal of our Performance Ambition cannot be achieved with growth alone in the long term. Therefore, one of Diageo’s key strategies is to focus on sustainability in expansion and growth.

The company has a history of creating sustained, quality growth. The 200th anniversary of Johnnie Walker and Guinness shows how great brands can be built over time by placing a focus on quality, brand equity, innovation, and investing for the long run.

As part of its efforts to help embed everyday efficiency, Digieo focuses on three core elements:

Speeding up their business by simplifying it
Customers and consumers should be the main focus of resources
By using data and analytics to enhance their processes, they can become more efficient and gain insights

The best investment strategy involves focusing on the areas that will offer the greatest returns: people; advertising and promotion (A&P); technology, data, and e-commerce; capital expenditure; and mergers and acquisitions (M&A).

'Celebrating life every day, everywhere is a central part of Digieo's culture of inclusivity and diversity. It is both a moral imperative and a driver of innovation and commercial performance to attract the best and most diverse talent. As one of Diageo's key objectives, it is to contribute to the development of an inclusive culture and a more equal society through brands and across the company's value chain.

Additionally, they need to be advocates for a low-carbon world and champions of water stewardship. As a result, the company will explore circular economy approaches to make more drinks with fewer materials. Additionally, Diageo strives to become more efficient and cost-effective, to build a stronger and more resilient supply chain, as well as to attract and retain high-quality talent.

Society 2030 - Diageo’s 10-year plan to progress

The above core objects are embraced by the company’s 10-year plan, which was slightly postponed by the COVID-19 pandemic. The main goals include:

Creating a positive yet responsible image of alcohol
Promoting diversity and inclusion
Preserving the natural resources required for future success
Giving back to the community in a positive way

One of the major elements of the plan is to promote sustainability, for which the group’s new facility is a great example. The sustainable design ensures that no fossil fuels are used during production at the distillery. The facility provides its electrode boilers, onsite electric vehicles, lighting, and equipment with a mix of wind and solar energy sourced from EKPC and Inter-County Energy, making it one of the largest in North America. A virtual metering system has been implemented on-site to increase the visibility of water, electricity, and steam use, enabling the site to drive resource efficiency and sustainability. As a result, the distillery is saving nearly 117,000 metric tons of carbon emissions each year. This is equal to taking over 25,000 cars off the road for the year.

Shared Service Centers around the world

Almost all Fortune 500 companies have already established their shared service centers, which help to significantly reduce labor costs on the one hand and standardize internal processes on the other. When it comes to centralizing processes, Diageo is a pioneer, operating SSCs with hundreds of employees at several locations - currently in Budapest, Bogota, Nairobi, Manila, and Bengaluru.

As is common practice in the market, Diageo SSCs combine and provide the following functions to the Group's companies:

Controlling
Legislative compliance
Human Resources
Tax and treasury
Business intelligence and analytics

Budapest's 1,350-strong team has played an important role in providing invaluable support for Financial Management, Human Resources, and Business Intelligence within the last 15 years. The Budapest office opened in 2002, renting a small space with less than 100 employees. The location was chosen for its central location and easy accessibility - both for colleagues commuting from Budapest and the suburbs. Since then, the number of employees has grown to over 1,000 and the floor space to 10,000 m2: a complete office building on 7 floors and 2 additional floors in the adjacent building.

Only companies that lead and shape the market can truly plan for the future. Diageo's 2030 strategy is not just about setting lofty goals; the company is serious about being a responsible business. The company is not doing this out of the goodness of its heart, of course; there is real pressure on market leaders to act responsibly from consumers, investors, and even employees.

In the interest of sustainability, the company's production is gradually being converted to renewable energy, and new technologies are constantly being sought to reduce the enormous amount of water used in the production of its beverages. Alongside automation, fewer raw materials are the most important key to reducing costs, which Diageo is doing well in the face of rising profits.

Sales and Marketing

Flagship products of the company.

Through companies acquired over the decades, Diageo owns and controls more than 200 different brands. Thanks to a portfolio shakeout before and immediately after the merger, the group no longer owns any hotels, pubs, because or restaurant chains and has sold most of its non-core business. As a result, the group's workforce has been reduced by almost 60,000 employees. However, the remaining portfolio is easily manageable and consists solely of alcoholic beverages, which can be sold both directly and to wholesalers.

The Group's beverage brands

Whisky: Johnnie Walker, Buchanan's, Cardhu, Justerini & Brooks, Bell's, Black & White, White Horse, Logan, Caol Ila, Vat 69, Oban, Talisker, Lagavulin, Glenkinchie, Dalwhinnie, Cragganmore, Clynelish, Singleton including Glen Ord, Dimple, Royal Lochnagar, Glen Elgin, Knockando, Windsor, Grand Old Parr, Auchroisk, Benrinnes, Blair Athol, Dailuaine, Glenlossie, Glen Spey, Inchgower, Linkwood, Mannochmore, Mortlach, Strathmill, Teaninich, Roe & Co, Bulleit, Seagram's Seven Crown, Crown Royal, Piehole Whiskey
Brandy: Cîroc VS
Vodka: Smirnoff, Cîroc, Ketel One
Rum: Captain Morgan, Bundaberg, Pampero, Cacique, Zacapa
Mixed drinks: Smirnoff Cocktails, Loyal 9 Cocktails
Liqueur: Baileys, Sheridan's, Pimm's
Tequila: Don Julio, DeLeón, Casamigos
Gin: Gordon's, Tanqueray, Gilbey's, Aviation Gin
Various: McDowell's
Baijiu: Shui Jing Fang
Rakı: Yeni Rakı, Tekirdağ Rakısı, Kulüp Rakı, Altınbaş, İzmir Rakısı, Civan Rakı, Tayfa Rakı
Cachaça: Ypióca
Beer: Guinness, Tusker, Harp Lager, Kilkenny, Senator, Meta Abo, Smithwick's

From the above list, Johnny Walker Whisky, Smirnoff Vodka, Captain Gordon rum, Baileys liqueur, and Guinness beer are considered flagship products in the middle price range. Within the flagship and complementary brands, there are also products specifically intended for mass consumption at lower prices, and more expensive beverages purchased mainly for special occasions, as gifts, or for consumption in luxury restaurants and bars. A great example of the latter product category is the Ciroc vodka brand, which is sold at the higher end of Diageo’s price range.

According to Diageo's LinkedIn profile, nearly one-third of its employees work in sales, which is above average. The company's sales team is made up of several departments that work in groups by country and region, as well as by product range and customers.

The office-based salesforce contacts customers mainly by phone and serves wholesalers and grocery chains. In addition, Diageo also has a very strong field sales team that visits customers in Diageo countries by car and in person. These are usually restaurants, bars, and local stores. The field team ensures that customers receive all the information and tools they need to sell Diageo beverages to the greatest extent possible and is also responsible for ensuring that products are placed in highly visible locations on prominent shelves.

The COVID-19 pandemic severely weakened Diageo's field service capacity, which the Group was able to compensate for by strengthening its home delivery business. Last year, pre-made cocktails and crowd-pleasing mixed drinks were the big sellers, especially in the USA. To promote these, Diageo US even introduced a "cocktail-to-go" program .

Diageo is gradually placing more emphasis on strengthening its e-commerce divisions, which is important not only because of the COVID -19 pandemic. As commerce shifts online, companies that stick to "tried and true" physical sales will fall behind and lose their market position. Diageo operates several online platforms, the most recent of which is Alexander & James, which opened in the United Kingdom. This website specifically markets premium products and makes them directly available to the end consumer.

Employer branding is a key component of Diageo's marketing activities, which focus on finding, attracting, and retaining the best talent. This is supported by Diageo's above-average employee benefits and its youthful and relaxed corporate culture (in countries where alcohol is not banned, offices have a dedicated Diageo bar where employees can sample the company's products - exclusively outside working hours).

Diageo is a holding company whose marketing is primarily focused on getting the word out about the brands it owns. For this reason, you will not see any Diageo ads, but you will see more Johnny Walker or Guinness beer.

One of Diageo's most active brands from a marketing perspective is Johnny Walker. The campaign-like structure of their television, online, and print media advertising allows the brand to focus on a specific message, typically defined by the intersection of responsible consumption (A great partnership was formed in 2016 between Johnny Walker and taxi-alternative startup, Uber.) and a lifestyle associated with the alcoholic beverage. With one of its most successful campaigns (Joy Will Take You Further), Johnny Walker has reached over 250 million people worldwide.

For decades, Diageo has been about finding the right way, the right product, and the right service. Decisions in the 2000s made the production and distribution of alcoholic beverages the company's core business. The product range consists of almost 200 brands, covering not only the different types of beverages but also different price ranges, different lifestyles, and products marketed only in certain countries.

In the area of distribution, in the last decade, in addition to telephone and face-to-face business initiation, e-commerce has developed, accounting for an increasingly large share of the results of the distribution department, which employs nearly 10,000 people. Surprisingly, Diageo does not disclose the exact amount, but the fact that revenues have not declined despite the pandemic closures is largely due to the fact that e-commerce has become a major driver.

On the marketing front, employer branding and brand building are also important to Diageo. To this end, various campaigns are organized, but they must be guided by the values the company has set for itself, such as the responsible use of alcohol. Diageo's commitment is reflected in the fact that the company spent 23% more on branding and marketing in 2021 than in the previous year .

Final thoughts and key takeaways of Diageo’s story

Growth by numbers.

The Diageo Group has been able to steadily increase its profitability in recent years thanks to a well-functioning strategy. Instead of focusing on trendy solutions, it has concentrated on cost reductions and continued M&A activities.

If there is anything to learn from Diageo, it can build brands. There are few holding companies as successful as this one, which not only recognizes good businesses at the right time but takes great care in preparing some of them to rise. And where it does not sense the performance potential or the company no longer fits the portfolio, it sells quickly and tactically. So the portfolio of companies is constantly in motion, and only the best-performing stocks have a permanent place. Accordingly, profits are rising steadily, which is particularly remarkable considering that the pandemic period has hit the hospitality industry hard.

Key takeaways from Diageo’s story:

The merger of two strong companies: The secret of Diageo's success lies in the merger of two companies that could perform well independently. While Guinness evolved from a brewery into a major player in the beverage market, Grand Metropolitan PLC came from the hospitality and catering industry. Time has proven them right, as they have complemented each other perfectly.
Focused portfolio: Even before the merger, the two founding companies had recognized that not all of the companies acquired over the decades were part of the core business, so underperforming companies and business units that did not serve the plans were repeatedly carved out of the Group. This not only provided the seed capital for new M&A activities but also helped the Group to focus on what it does best.
Shared service centers: Diageo operates hundreds of shared service centers in remote locations around the world, where it has centralized functions such as HR, accounting, and business process analysis. This not only allows it to consolidate its otherwise diversified subsidiaries but also to make significant savings through cheaper labor.
Shifting towards the future: Although Diageo's beverage brands have typically been sold physically or over the phone, the company realized a few years ago that it would fall behind its competitors if it didn't adapt and develop its e-commerce division in time. In addition, sustainability became another important strategic objective, reflected in the renewal of raw materials for the products and the continuous improvement of production facilities.

The Diageo company is a prime example of a successful holding company, as it has not only continued the main growth strategy of the founding companies, acquisition but also strengthened it in every way. Diageo is one of the most active companies in the beverage market, and its success shows that not only is the holding company in good hands but that the group has acquired considerable expertise in building new beverage brands and businesses over the decades.

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Diageo plc Harvard Case Study Solution and HBR and HBS Case Analysis

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Diageo plc Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Diageo plc Case Solution

The Diageo plc case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Diageo plc case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Diageo plc case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Diageo plc case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Diageo plc Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Diageo plc is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Diageo plc HBR Case Study

The objective of the case should be focused on. This is doing the Diageo plc Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Diageo plc

An important tool that helps in addressing the central issue of the case and coming up with Diageo plc HBR case solution is the SWOT analysis.

The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Diageo plc.
Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Diageo plc Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Diageo plc

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Diageo plc operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

These are the threats that the industry faces due to new entrants.
It includes the threat of substitute products.
It includes the bargaining power of buyers in the industry.
It includes the bargaining power of suppliers in an industry.
Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Diageo plc

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Diageo plc case solution.

VRIO Analysis of Diageo plc

This is an analysis carried out to know about the internal strengths and capabilities of Diageo plc. Under the VRIO analysis, the following steps are carried out:

The internal resources of Diageo plc are listed down.
Each of these resources are assessed in terms of the value it brings to the organization.
Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
Each resource is assessed whether it could be imitated by competition easily or not.
Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Diageo plc

The Value chain analysis of Diageo plc helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

The firm’s primary and support activities are listed down.
Identifying the importance of these activities in the cost of the product and the differentiation they produce.
Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Diageo plc to increase its competitive advantage.

BCG Matrix of Diageo plc

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

Identify the relative market share of each strategic business unit.
Identify the market growth of each strategic business unit.
Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Diageo plc BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Diageo plc

Ansoff Matrix is an important strategic tool to come up with future strategies for Diageo plc in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
The organization can develop new products for the existing market. This is known as product development strategy.
The organization can enter new markets with its existing products. This is known as market development strategy.
The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Diageo plc

Diageo plc needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

Analyse the company’s products and devise strategies to improve the product offering of the company.
Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Diageo plc Blue Ocean Strategy

The strategies devised and included in the Diageo plc case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Diageo plc

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Diageo plc looks at the direct and indirect competitors within the industry that it operates in.

This involves a detailed analysis of their actions and how these would affect the future strategies of Diageo plc.
It involves looking at the current market share of the company and its competitors.
It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Diageo plc Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Diageo plc case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Diageo plc Case Study Solution that the business unit should focus on costs.
The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Diageo plc case answers should be written down in the Diageo plc case memo, clearly identifying which part shows what. The Diageo plc case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Diageo plc HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Diageo plc is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Diageo plc Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
It shows that one has been clarified with the HBR fundamentals on the topic.
It shows that the details provided in the case have been properly analysed.
It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Diageo plc Harvard case is complete and properly answered.

Recommendations and Action Plan for Diageo plc case analysis

For Diageo plc, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

Diageo plc should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
Diageo plc should enhance the value creating activities within its value chain.
Diageo plc should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

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Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

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Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

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Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

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Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

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Diageo Plc Case Study Solution Analysis

by HBR Sixty Seven

Diageo Plc Case Study Solution Analysis. Get Diageo Plc Case Study Analysis Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Diageo Plc Case Solution, Case Analysis, Case Study Solution.

Email us for Any Case Solution at: [email protected] Diageo plc Case Study Solution Analysis Diageo plc Case Study Solution Analysis. Our tutors are available 24/7 to assist in your academic stuff, Our Professional writers are ready to serve you in services you need. Every Case Study Solution & Analysis is prepared from scratch, top quality, plagiarism free. Authors: George Chacko, Peter Tufano, Joshua Musher Get Case Study Solution and Analysis of Diageo plc in a FAIR PRICE!! Steps for Case Study Solution Analysis: 1. Introduction of Diageo plc Case Solution The Diageo plc case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Diageo plc case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Diageo plc case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. The case solution first identifies the central issue to the Diageo plc case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved. 2. Problem Identification of Diageo plc Case Solution Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Diageo plc is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 3. Analysis of the Diageo plc HBR Case Study The objective of the case should be focused on. This is doing the Diageo plc Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. 4. SWOT analysis of Diageo plc An important tool that helps in addressing the central issue of the case and coming up with Diageo plc HBR case solution is the SWOT analysis. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Diageo plc Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue. Therefore, the SWOT analysis is a helpful tool in coming up with the Diageo plc Case Study answers. One does not need to remain restricted to using the traditional Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. 5. Porter Five Forces Analysis for Diageo plc Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Diageo plc operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. • These are the threats that the industry faces due to new entrants. • It includes the threat of substitute products. • It includes the bargaining power of buyers in the industry. • It includes the bargaining power of suppliers in an industry. • Lastly, the overall rivalry or competition within the industry is analysed This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective. 6. PESTEL Analysis of Diageo plc Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 7. VRIO Analysis of Diageo plc This is an analysis carried out to know about the internal strengths and capabilities of Diageo plc . Under the VRIO analysis, the following steps are carried out: • The internal resources of Diageo plc are listed down. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] • Each of these resources are assessed in terms of the value it brings to the organization. • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors. • Each resource is assessed whether it could be imitated by competition easily or not. • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. • The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage. 8. Value Chain Analysis of Diageo plc The Value chain analysis of Diageo plc helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows: • The firm’s primary and support activities are listed down. • Identifying the importance of these activities in the cost of the product and the differentiation they produce. • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Recognizing value creating activities and enhancing the value that they create allow Diageo plc to increase its competitive advantage. 9. BCG Matrix of Diageo plc The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows: • Identify the relative market share of each strategic business unit. • Identify the market growth of each strategic business unit. • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate. • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. The strategies identified from the Diageo plc BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 10. Ansoff Matrix of Diageo plc Ansoff Matrix is an important strategic tool to come up with future strategies for Diageo plc in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy. • The organization can develop new products for the existing market. This is known as product development strategy. • The organization can enter new markets with its existing products. This is known as market development strategy. • The organization can enter into new markets with new products. This is known as a diversification strategy. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. 11. Marketing Mix of Diageo plc Diageo plc needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. • Analyse the company’s products and devise strategies to improve the product offering of the company. • Analyse the company’s price points and devise strategies that could be based on competition, value or cost. • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements. • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] 12. Diageo plc Strategy The strategies devised and included in the Diageo plc case memo should have a strategy. A strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 13. Competitors analysis of Diageo plc The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Diageo plc looks at the direct and indirect competitors within the industry that it operates in. • This involves a detailed analysis of their actions and how these would affect the future strategies of Diageo plc . • It involves looking at the current market share of the company and its competitors. • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. • It also should look at the potential opportunities and threats that these competitors pose on the company. 14. Organisation of the Analysis into Diageo plc Case Study Solution Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Diageo plc case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Diageo plc Case Study Solution that the business unit should focus on costs. • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The case study analysis and solution, and Diageo plc case answers should be written down in the Diageo plc case memo, clearly identifying which part shows what. The Diageo plc case should be in a professional format, presenting points clearly that are well understood by the reader. 15. Alternate solution to the Diageo plc HBR case study It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Diageo plc is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. 16. Implementation of Diageo plc Case Solution The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] objectives. It also lays down the changes needed to be made as well as the assumptions in the process. • A proper implementation framework shows that one has clearly understood the case study and the main issue within it. • It shows that one has been clarified with the HBR fundamentals on the topic. • It shows that the details provided in the case have been properly analysed. • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Diageo plc Harvard case is complete and properly answered. 17. Recommendations and Action Plan for Diageo plc case analysis For Diageo plc, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: • Diageo plc should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. • Diageo plc should enhance the value creating activities within its value chain. • Diageo plc should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

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Diageo: Bringing Iconic Characters to Life with a New Global Employer Brand

You might have heard of Captain Morgan, but have you heard of the parent brand Diageo? PeopleScout helped Diageo, one of the world’s largest alcoholic beverage manufacturers, with a new global employer brand that helped them both celebrate and transcend their iconic brands to attract world class talent across cultures, companies and languages.

Diageo has a portfolio of some of the world’s most renowned drinks brands including Guinness, Baileys and Captain Morgan. Even though its drink brands are long established, the Diageo brand itself is less recognizable, particularly in the employment space.

Our challenge was to develop an employer brand that cut through this lack of awareness and inspired people in a wide variety of commercial disciplines all across the world to see themselves at Diageo. The new brand needed to reflect their employer value proposition (EVP) to drive Diageo’s reputation as an employer of choice for world class talent globally and complement the existing corporate brand positioning.

Our mission was to create and launch a new and compelling employer brand for an employer that was being outshined by its own iconic products.

Delving into the Challenges

We dove into insights gathered from a variety of internal stakeholders—from experienced Diageo colleague to recent hires—across North America, Latin America, Europe, Africa, India and other parts of APAC. These employees were from several departments like e-commerce, supply chain, marketing, finance, HR, IT and customer management.

We realized that the wide variety of geographies that Diageo covers creates complex challenges for the business, from the differing strengths in consumer brands between markets to talent attraction techniques and cultural nuances relating to alcohol. So, we knew that the new employer brand had to be flexible enough to resonate in different countries and feature local employees as champions to bring it to life.

From an external perspective, a survey revealed that 58% of our target audience had not heard of Diageo. Yet, 78% said they would be interested in working there after we connected the Diageo name to their famous brands. So, we needed to find a way to link the Diageo name to their recognizable products.

A Unique EVP – Character is Everything

We anchored the new employer brand in the history of the organization: character . People of extraordinary character—like Arthur Guinness, Johnnie Walker and Charles Tanqueray—had built the business from the ground up centuries before. And their spirit lives on, driving every aspect of Diageo in the 21st Century.

The EVP we introduced—Character is Everything—was grounded in the history of their individual products as well as influenced by the characters we met at Diageo. We wanted the brand to be a celebration of their personalities, joy and enthusiasm for Diageo’s famous brands.

We took Diageo through a comprehensive journey, developing pillars, narratives and collateral that fit into their overall corporate brand.

Tailoring the Employer Brand for Global Talent

We created six brand pillars, ensuring the message was compelling and authentic for audiences divided by geography or job area and then tested the proposition globally to gain buy-in business-wide.

In our narratives and designs, we made Diageo employees the brand heroes, telling local and global stories, and showcasing their characters to bring the Diageo story to life on every channel. The brand imagery was genuine and full of depth—from the smiling faces of real employees to the bold headlines.

We fine-tuned and then launched different iterations of the brand for different geographies. For example, in various African countries, recruiters told us that candidates responded well to messages around supporting the community. We also translated our communications into a range of languages.

The brand was designed to provide enough content and materials for immature markets to roll out independently, while still leaving enough scope and space for innovation in advanced markets.

Setting Diageo Up for Success

Our Talent Advisory team supported the brand launch across the globe, promoting and publicizing the new brand. We helped the Talent Engagement Teams to understand the proposition, what tools are available to them and how to use the brand effectively to hire great talent. We also supported internal launch events in which we engaged employees in activities to explain what it means to work for Diageo and the kinds of traits and behaviors they should look for in new hires.

The new EVP and employer brand creative was well received across Diageo.

Launch Events

We hosted five in-market events plus a webinar which had over 500 webinar registrants, over 200 live participants and 30 on-demand views of the recording. These events inspired huge amounts of user-generated content on LinkedIn from employees.

Social Media

Diageo executed a series of posts across their social media channels under a unique branded hashtag, #characteriseverything, generating a huge amount of activity and traffic during the first week.

329,472 overall impressions
6,257 clicks plus 2,936 click-throughs to the Diageo career site
2,986 likes
72 comments
3.19% overall engagement rate (well above industry average)

Global Reach

Activations of the brand have now reached 26 markets. So far, we’ve worked on:

A film to support recruitment in Budapest
Brand activation project for hiring in Korea
Communications for Diageo’s global ATS platform
A revamped toolkit for employee reward
Recruitment event collateral for Venezuela
A recruitment marketing campaign for early careers within the supply chain division
An internal communication project for the Diageo’s migration to Workday

We’ve gained evidence across a number of campaigns that the new employer brand is altering perceptions and boosting awareness of Diageo. There has been a great response internally too. Not only were we over-subscribed for brand champion volunteers, focus group feedback is showing an upswing in pride around the Character is Everything message.

AT A GLANCE

COMPANY : Diageo
PEOPLESCOUT SOLUTIONS : Talent Advisory
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ABOUT DIAGEO : Diageo is one of the world’s largest producers of spirits and beers including iconic brands like Guinness, Smirnoff and Johnnie Walker. With over 27,00 employees, their 200+ brands are sold in 180 countries.

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Diageo Plc. Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Diageo Plc.

Based on the analysis of the case exhibits 2 indicates the Pillsbury contributes 32.11% revenue of the entire group of the organization. This is a better indication from the basic norms of the business. On the other hand Burger Kings contribute 7.93%, that’s means packed goods have much more value in term of the revenue. This trend also reflects in the operating profits of the company where is represents 24.85% and 10.2% for Pillsbury and King Burger respectively. This is the strength of the company and creating value among their transactions. This effect will beneficial in every aspect of the enterprise. This will rank as 2 nd division of the organization with respect to the stability of the product

The wines and spirits ranked in the First and largest division in term of the revenue and operating income. The revenue and operating profits depict 41.88% and 50.61%, which itself is the high percentages respectively. This division is not only the biggest division as well as the fastest division, which has the sales growth of the 8%, which is mean full in the term of the groups. This division was the second largest since the merger and the merger is done with watching the potentiality of this division. So this is the main line for the company with respect to profitability as well as the growth of it.

The company has board perspective to divest the shareholding in Pillsbury and Burger King that will raise the funds through the expansion of the alcohol industry. This was the key sign for the company which lies in the movie on the profitable side. This effect will also improve growth with the new dimensions of technology and unrivaled portfolio brands and image of the enterprise.

Moreover, the General Mills will pay $5.1 billion cash and 141 million newly issued shares of the company, which amounts approximately $5.4 billion. These funds can be invested to enjoy certain efficiencies and synergies, which could benefit the firm to save cost of manufacturing, procurement and supply.

What does the model developed by Diageo’s treasury group recommend for Diageo’s optimal capital structure going forward?

From the figure # two represents the output chart of Monte Carlo Model. The horizontal axis of X the model represents the decrease in interest coverage or increase in gear whereas the on the vertical axis of Y represents the present value of taxes paid and distress cost. The best structure is the point which maximizes the present value of cash flows to the equity holders. Interest coverage of 4.2 signifies the financing mix which maximizes the expected sum of financial distress costs and taxes paid. The strategy will substantially threaten the rating of the company and the results in Exhibit 5 shows that at the median interest coverage of 4.94, the company will have the rating of BBB. The lower yield firms would not be able to generate sufficient funds for expansion, the worse the rating, the greater the difficulty in raising funds

The Model of Monte Carlo simulation considers different variables, which include local 15- year sequence , operating cash flows, EBIT, interest rates, foreign exchange and market correlations but it fails to consider the nature of the instruments that is compound instruments have usually low interest rate due to its nature to convert into equity stake. Moreover, the model also fails to consider the potential conflict of interest between management and debt holders. Increased debt will increase the risk and return to the debt holder, but also give rise to agency cost

Furthermore, the potential forthcoming acquisitions are also missing, so it must be incorporated as a part of the strategy. Additionally, some of the trials represent a 20% reduction in asset value and there were no provisions in the model for issuing equity to pay down debt when coverage ratio fell. This substantially reflects that the possibility of the firm to handle financial distress is minimized, so some actions are required in order to produce or reduce the impact of financial distress. That is issue equity to pay debt

Critique the model. Does the model capture the dynamic nature of the capital structure problem? What features, if any, are missing from the model?

This model represents the future settlements of underlying assets fluctuations with respect to the random variation of the prices. This model is totally referred to derivatives product and their stimulation. The capital structure is sort of financial restructuring in which debt and equities are changing with respect to the returns. On the other hand, this model covers the all areas of the portfolio management in which investors attract towards the enterprise future asset value. The basic model for capital structuring is debt and equity mixtures which will sustain the organization value.................................

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Diageo plc Case Solution And Analysis, HBR Case Study Solution
Diageo plc Harvard Case Solution & Analysis. Diageo Plc. Introduction. The report presents a case about Diageo plc, world's leading consumer product company, which intends to sell its packed food subsidiary, Pillsbury to General Mills and also considers selling 20% of its Burger King subsidiary through an initial public offering.
Diageo plc Case Study Solution [7 Steps]
Case Study Solutions Background Work. Diageo plc case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve - evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment.
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The Diageo plc case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these. 2.
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Diageo plc Case Study Solution & Analysis. In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student's role is to analyze the case and diagnose the situation ...
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Step 2 - Reading the Diageo plc HBR Case Study. To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map.
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Diageo plc Case study questions. Instructions: This case examines the capital structure decisions of Diageo plc, one of the largest food and drink companies in the world. Please read the case prior to our first class of Week 4 and give some thought to the following questions:
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Three Step Approach to Diageo plc Case Study Solution. The three step case study solution approach comprises -. Conclusions - MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons - At the second stage provide the reasons for the ...
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Main Case. Bestseller. Diageo plc. By: George Chacko, Peter Tufano, Joshua Musher. A major U.K.-based multinational is reevaluating its leverage policy as it restructures its business. The treasury team models the tradeoffs between the benefits and costs of debt financing, using…. Length: 16 page (s)
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Subjects Covered Capital structure Debt management Financial strategy Models. by George Chacko, Peter Tufano, Joshua Musher. Source: HBS Premier Case Collection. 16 pages. Publication Date: Jan 29, 2001. Prod. #: 201033-PDF-ENG. Diageo plc Harvard Case Study Solution and HBR and HBS Case Analysis
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The case solution first identifies the central issue to the Diageo plc case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution ...
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Diageo Plc. Case Solution And Analysis, HBR Case Study Solution
Now move to the analysis of operating income with respect to total debts of the Diageo public limited corporation represents the 34% with the comparison of average industry results which 58%. This average covers the segments of alcohol, beer, packed foods and restaurants which indicates 38%, 86%, 55% and 54% respectively.
PDF Case Study Diageo
CASE STUDY DIAGEO THE DIAGEO CHALLENGE Diageo came to us with an identity issue. In a cut-throat battle for the talent they needed to reach the next stage of their evolution, they were at a competitive disadvantage. The organizations they were competing against - in-market, such as AB-Inbev, Heineken and Pernod Ricard, and outside-market,
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ABOUT DIAGEO: Diageo is one of the world's largest producers of spirits and beers including iconic brands like Guinness, Smirnoff and Johnnie Walker. With over 27,00 employees, their 200+ brands are sold in 180 countries. Contact Sales. Diageo came to PeopleScout with an identity issue.
Diageo Plc. Case Solution And Analysis, HBR Case Study Solution
Solution 2. Based on the analysis of the case exhibits 2 indicates the Pillsbury contributes 32.11% revenue of the entire group of the organization. This is a better indication from the basic norms of the business. On the other hand Burger Kings contribute 7.93%, that's means packed goods have much more value in term of the revenue.

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Case study: Diageo

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How Diageo Became One Of The World's Largest Alcohol Producers

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Grand Metropolitan PLC

The largest merger at the time

Cleaning up the portfolio

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