Diageo Case Report

Diageo Case Report Scott Johnsson BMGT495 March 11, 2008 Strategic Issues In 2001, the conglomeration cognize as Diageo PLC became the worlds largest spirits and wine keeping company in the world. This was the outcome of an intense acquisition of Seagram fellowships potable assets for $8.15 billion. The resulting conglomerate faced complicated strategical issues concerning how it wished to move forward in its beer, wine, and spirits voices. The subject of their inquiries focus mostly on marketing and acquisition decisions. The addition of Seagrams upscale wine and spirits brands into Diageos portfolio caused the corporate-level management to second thought their global marketing strategy. The newly created Diageo Chateau & Estate Wines division was peculiarly under examination for opportunities to create synergies with the other two beverage lines. Also because of the fundamental differences between the processes to promote wine and the processes to produce beer and spirits, Diageo faced forefronts on how to market the wines alongside the beer and spirits. Ray Chadwick, the newly appointed President of Diageo Chateau and Estate Wines, was fully aware that his divisions industry was undergoing dramatic changes that caused a great smoke of uncertainty.

It was evident that global consolidation within the wine-making industry by competing conglomerates was creating a follow or lead scenario. The main question that Chadwick had to answer was if it was appropriate for Diageo to diversify its holdings and become a first-mover in the uncertain global environment, or to focus on its living brands as a safe alternative. Such issues would be by and large dependent on Diageos marketing skills, innovations, and timely actualization of global trends. External Analysis [Exhibit 1] The turn of the millennium and the years that followed were an extremely dynamic period in the global environment. The economies of the world were trauma a downward trend following the... If you want to entrance a full essay, order it on our website: Ordercustompaper.com

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