Executive Summary
This is a strategic options case regarding Diageo, PLC. Diageo is a conglomerate focusing on premium alcoholic beverages.
The firm originated in 1997 with the merger of Guinness and GrandMet. The company began with the mission to be the strongest premium alcoholic beverage producer worldwide. To that end, they have acquired a majority of premium brands in the spirits industry and a large portfolio of premium wines, while at the same time divesting itself of those companies not in line with its new goals. The major satellites in the food industry were Burger King and Pillsbury, which Diageo managed to sell in 2002 and 2001 respectively. Today they are the controlling producer of spirits in the US and UK, and compete globally in both wine and spirits.
Major issues facing the firm include an inability to completely divest itself of the food industry, and the reliance on a poor long-term growth strategy. Diageo must find a way to better utilize its synergistic resources in order to develop lasting competitive advantages.
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I. General Industry and Competitor Environments 3
II. 5-Forces Model 4
III. Key Factors for Success 5
IV. Corporate Strategy ...