Diageo's Strategy: Analysis, Implementation, and Recommendations

This report provides a comprehensive analysis of Diageo's current strategies and the challenges it faces in maintaining sustainable growth. It highlights key issues such as integrating new acquisitions, underperformance in specific regions, and insufficient investment in technology. The report suggests strategic actions, including collaborating with suitable partners, conducting thorough market analysis before expansion, and leveraging technology to improve resource utilization and overall performance. By implementing these recommendations, Diageo can enhance its market position, improve profitability, and achieve long-term success. Desklib offers students access to a wide range of solved assignments and past papers.

Strategy and Strategists

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Organisation Overview...............................................................................................................4
Strategic audit..............................................................................................................................4
Implementing the strategic actions for the organisation.............................................................5
Critical Reflection.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES:.............................................................................................................................11
Books and Journals...................................................................................................................11

EXECUTIVE SUMMARY
The organisation needs to take certain measures in order to incur more profits in market.
They need to maximize their profits with the use of technology. This report generally covers all
the aspects of different trends and barriers which the company needs to implement in order to
attain sustainable growth in future. Diageo is beverage alcohol company which has created a
significant value in market. They are operating their business in different countries in order to
incur more profits. In this report there is analysation of different challenges which the company
is facing. Their growth has been stopped in the market due to the changing market trends. There
are three areas which is discussed in this report which needs to be improved by the company.
The first factor is acquiring new acquisitions. They need to analyse the market structure and the
viability in the individual in which they are indulging into partnership. On the other hand, the
second factor in which they are lacking is the use of technology through this they are
underperforming in different regions. There are multiple technological advancements which
needs to be implemented by the firm in order to achieve an effective growth. The management
needs to become creative in every manner. They need to think new ideas which could help them
perform better in future. They can expand their business in different regions by utilising the
resources in a efficient manner. There are new trends which is changing and the company needs
to study the external forces which could help them to achieve success. In this methods there is an
effective use of technology which can focus on improving the viable factors for the firm. They
are bale to attract new potential customers in the newer regions.

INTRODUCTION
The organisation needs to implement a strategy which helps them to achieve their
inherent targets in the market. In this new era most of the companies use the technological factor
to perform better in market (Dunn and Staudenmaier, 2019). Diageo is a multinational beverage
company which provides quality products to the consumer. The company operates in more than
180 countries. The brand has attract a new potential range of audience by optimising their
performance and products. The report aims to analyse about understanding about different
strategies which is formulated by the organisation. On the other hand, in this report there will be
evaluation about different plans which can help the company to gain a competitive advantage
over other competitors. Along with that, there are strategic recommendations which will be
discussed in this report. This further helps the form to improve the critical areas and address
different concerns in an effective manner.
MAIN BODY
Organisation Overview
Diageo is a multinational beverage alcohol company. The company provide various
authentic and quality products to the consumer. It is headquartered in London England
(Virtaharju and Sorsa, 2018). They had expanded their operations in more than 180 countries all
across the world. The organisations was formed in 1997 There are two mergers which is
Guinness Brewery and Grand Metropolitan. Due to the poor performance the company has failed
in several regions. The management needs to analyse the situation effectively in order to achieve
and effective growth in the market.
Strategic audit
It is the extent which help[s the company to measure their overall performance and the
purpose which they have set needs to be fulfilled in market. The company can significantly
achieve their overall goals and objectives in an effective by implementing different strategies and
approaches (Copetti and et.al., 2021). In relation to Diageo they had drawn an strategic plan to
achieve goals in market. The organisation has expended their business in various regions to
generate more revenues in market. The financial performance of the company is 238.4 million.
The net sales of the organisation stands at 12,733 million. In order to enhance the overall
operations the organisation has invested heavily in the artificial intelligence technology which

helps them to achieve a significant growth in market. The company has shown and extensive
determination in making their products. In today new marketing conditions they had managed to
achieve a positive brand image among various customers. They are improving continuously in
different aspects through this they are becoming more viable to achieve sustainable performance
in industry. They are building a brand which covers different requirements of consumer in long
term aspects. The organisation needs to focus on new methods and heavily invest in technology
to become more competitive. With the new technology the company has expanded their business
in different regions over a period of time. They had generated and increased amount of revenues
in the market. There are various challenges which is faced by the company in the recent years.
This has significantly affect their performance in market. The challenges and issues are described
below:
 Integrating in multiple new acquisitions – The organisation has indulge in various
acquisitions without implementing any analysis. Through this they had incurred various
losses in the market (Gavetti and Lecuona Torras, 2021). The company has also loose
their brand integrity in market.
 Underperforming in different regions – This is on of the main problem which has
effected their performance in industry. There are multiple weak points on which the
company need to work to improve their brand status and profitability in market. They
need to focus on the western markets in which they had face huge looses. The premium
products which they had introduced in market has failed to attract the customers.
 Geographical weakness and investment in technology – This is the major reason they
had face backlashes in the future markets. Diageo is experiencing high sales in some
regions but there are various regions win which the organisation fails to perform as per
their expectations. They had not invested in technology. Through this they are bale to
channelise and utilise the resources effectively. This could certainly improve their overall
performance in market.
Implementing the strategic actions for the organisation
In order to improve the performance in market. The management needs to transform
their ideology to achieve greater result in market. There are various strategic actions which could
be formulated by company. The main focus is to expand the business in different regions and
achieve great results in future. On the other hand, in the new era there are new marketing

conditions which has enhanced. The company needs to take certain measures in order to enhance
their performance in desired industry (Milevski, 2019). The problems of Diageo company could
be solved by implementing strategic decisions. They are able to capture the market with the new
strategies and approaches.
 Collaborating with right individuals - This is the major problem which is faced by the
company. In order to become more profitable they need to analyse the market conditions
and the suitability of other individual (Bock and Brown, 2021). They need to acquire the
business of those companies which are profitable in market and have a reputed brand
image. Through this the company is able to maximize their profits. Diageo can take
certain measures to improve the critical aspects for the company. They need to set the
competitive prices of the products to become more focused in the new dynamic
conditions of the market. There are various norms and values which can be established by
the company. They need to integrate well with the new ventures. They need to create a
balance between both the parties while indulging in new acquisitions. On the other hand,
there can create an effective agreement in which the company shares the profit and losses
equally (Zhang, Liu and Chu, 2020). Through this Diageo cannot had to take all the
losses. The management need to accumulate different aspects to achieve a sustainable
growth in industry. The organisation needs to collaborate in an effective manner with the
right individuals. This will further improve their performance in the market in a
significant manner. Moreover the management needs to take effective decisions by taking
the suggestion of the employees to become more viable while indulging in different
partnerships.
 Analysing the market condition to perform better in new regions – In the new era the
market is changing everyday most of the companies needs to take concerns of different
measures. Through, this they are able to improve their overall performance in market. In
relation to Diageo they had expanded their business in different regions to enhance their
overall sales (Dunn, 2019). One of the main reason is that the crisis has impacted their
overall performance. In the regions like western Europe and North America. The sales of
the company has significantly decline over a period of time. The main problem with
diageo is that they are nit analysing the market conditions in different regions. They need
to focus on the customer need and wants. This will help them to attain maximum

customer satisfaction and help them to achieve greater results in future. They need to
provide the excellent quality products as per the changing preferences of customers.
There are various new opportunities on which they can capitalise in this new regions in
the upcoming future. On the other hand another factor which is stopping their growth is
the changing economic policies and rules. In order to enhance their profits and become
popular in new regions. Diageo need to evaluate the market forces in an efficient manner.
This will help them to improve their overall performance and help them to attain a
sustainable growth in the market. The blended scotch is the new demand for the
customers in newer regions. This is the product which the company can introduced by
blending the new flavours (Wang and et.al., 2021). This will target the new potential
audience in an appropriate manner. There are various greater results which could be
achieved by the company by improving these aspects. With the help of technology they
can formulate different plans and strategies to gain a competitive advantage over different
competitors.
 Using the technology to improve the performance and utilise resources properly –
This is the main factor through which the company can offer better products to the
consumer. Most of the organisation is heavily investing the technology to incur more
profits in the market. In relation to diageo they are lacking in implementing the new
technology in workplace. This is the main area in which the company has to take
different valuable considerations. The company needs to utilise the resources effectively.
With the help of artificial intelligence technology the organisation can mange the
operations in a better way. There are multiple new trends which is emerging in industry.
The organisation can focus on understanding these new trends with the helps of
technology. Technology will distinctly help them to recruit the talented candidates of the
workplace (Wunder, 2019). They can improve various aspects in an appropriate manner.
The brand can dominate the market and improve the profitability in industry. Technology
is an important component which will brand to create a positive brand equity. Through
the technological advancements the Diageo can make valuable programs for the staff.
This will improve their weak points and help them to enhance the skills and capabilities.
This is necessary for achieving higher productivity and market growth could be achieved
by the company. In the future the organisation have the potential to achieve an systematic

growth in market. They need to follow certain standards to use the technology well in
workplace. In order to diversify their business the main benefits can be used by the firm
with the help of technology. With the technological implication they are asses the points
in which they are lacking. On the other hand, they can measure the performance of
employees in a significant manner. The management needs to involve their employees in
decision making to make valuable decisions.
In order to gain success in market and overcome different barriers there are three
improvements which the organisation needs to improve (Betts, 2019). They need to implement
all the strategic improvements to perform better in future activities and manage the working
operations perfectly. There are multiple new opportunities on which diageo can capitalise in
market and able to gain competitive advantage in market.
Critical Reflection
After completing this project there are various points which helps me to enhance my
overall skills and capabilities in an effective manner (Roche and et.al., 2019). There are various
points in which I am lacking in needs to improve it in order to achieve great results in future. The
new trends which are regulating in the market which I have to understand properly. There is a
growing interest in the management which has helped me to become more effective. This
management report helps me to enhance my overall knowledge. In the first phase there are
various issues which is understand by me on the chosen company. I analyse those factors
effectively and understand the critical areas in which the company is lacking.
This is one of the most important phase which is analysed my me appropriately. On the
other hand, the next phase in this project is to analyse different barriers which is stopping the
growth for the company. I had prepare the strategies for the company which could improve their
overall performance. The use of technology is the most important tool for the firm. There are
new ideas which needs to be created to achieve a sustainable growth in market. I had enhanced
my overall and important skill which is decision making. I had taken several important decisions
while preparing this project. This will benefit the company in an effective manner. In order to
complete this management report there is and extensive research which is formulated by me to
complete this report and to asses the organisation performance. There are various problems
which is encountered by me I cannot find the relevant research material. With the help of proper
research material through multiple aspects I has completed this assignment properly. I had

address all the problems which the company is facing in terms their finance, sustainability and
technology.
CONCLUSION
From the above report, its has been analysed that there are multiple strategic
developments which needs to be implement in the market. There are new opportunities on which
the company can taken advantage to perform better in future. On the other hand, this report aims
to analyse about new threats and barriers which is stopping the growth of company. Along with
that, there are certain measures which can taken by the form in order to overcome different
challenges in the market. For further instance, in this report there is evaluation about new
methods which is used to achieve successful performance and overall growth for the company.

REFERENCES:
Books and Journals
Betts, R.K., 2019. The grandiosity of grand strategy. The Washington Quarterly, 42(4), pp.7-22.
Bock, J.E. and Brown, R.P., 2021. To be liked or feared: Honor-oriented men's sensitivity to
masculine reputation concerns depends on status-seeking strategy. Personality and
Individual Differences, 173, p.110615.
Copetti and et.al., 2021. Management of biofloc concentrations as an ecological strategy for
microbial control in intensive shrimp culture. Aquaculture, 543, p.736969.
Dunn, K.A. and Staudenmaier, W.O., 2019. A Nato Conventional Retaliatory Strategy: Strategic
and Force Structure Implications. In Military Strategy in Transition: Defense and
Deterrence in the 1980s (pp. 187-212). Routledge.
Dunn, K.A., 2019. The Missing Link in Conflict Termination Thought: Strategy. In Conflict
Termination and Military Strategy (pp. 175-193). Routledge.
Gavetti, G. and Lecuona Torras, J.R., 2021. A Neo-Carnegie Approach to the Agency Question:
Bridging the Evolutionary and Cognitive Views of Strategy. Strategy Science, 6(4),
pp.353-359.
Milevski, L., 2019. The Strategic Response to Ambiguity. Orbis, 63(3), pp.376-390.
Roche and et.al., 2019. Improvisers, incrementalists and strategists: How and why organizations
adopt ADR innovations. British Journal of Industrial Relations, 57(1), pp.3-32.
Virtaharju, J. and Sorsa, V., 2018. Strategists as time travellers: How strategists apply
temporality in strategy construction. In 78th Annual Meeting of the Academy of
Management, AOM 2018.
Wang and et.al., 2021. Alkaline environments benefit microbial K-strategists to efficiently utilize
protein substrate and promote valorization of protein waste into short-chain fatty
acids. Chemical Engineering Journal, 404, p.127147.
Wunder, T., 2019. Mindsets for linking strategy and sustainability: Planetary boundaries, social
foundations, and sustainable strategizing. In Rethinking Strategic Management (pp. 1-
40). Springer, Cham.
Zhang, K., Ni, Y., Liu, X. and Chu, H., 2020. Microbes changed their carbon use strategy to
regulate the priming effect in an 11-year nitrogen addition experiment in
grassland. Science of the Total Environment, 727, p.138645.