Managing in Troubled Times Case Study

Troubled Times at Diageo

OR

Abstract:
Diageo was formed in December 1997 through the merger of Guinness and Grand Metropolitan, the then leaders in the global liquor business. By 2003, Diageo had become the world's largest scotch whisky manufacturer with its world famous brands like Smirnoff, Johnie Walker, Guinness and Bailey's. It had operations in 180 countries with a global workforce of 62,000 employees. However by late 2003, it was alleged that Diageo was misleading consumers by marketing vatted malt under the Cardhu label, which was supposed to be a single malt whisky.

Pedagogical Objectives:

• To understand the intricacies and dynamics of the scotch whisky industry.

Keywords : Diageo; Cardhu; Scotch whisky; Speyside distillery; Malt whisky; Single malt whisky; Managing in Troubled Times Case Study; Pure malt whisky; Guinness; Vatted malt whisky; Scotch whisky association; William Grant and Sons; Smirnoff; Distilleries in Scotland; Aeneas Coffey; Seagram

Contents:

• History of scotch whiskey
• Diageo
• Cardhu and its crisis
• The industry outcry
• The outcome