Managing in Troubled Times Case Study

Diageo: World's Largest Spirits Company in Troubled Times

OR

Abstract:
In 2003, Diageo, the world's largest producer of alcoholic drinks, was involved in a controversy over its alleged role in ruining the age-old reputation of the global Scotch Whisky Industry. This was followed by the decline in the sales of its Ready to Drink (RTD) beverages in the US and a sluggish economic growth in Europe, its major market. Besides this it also started witnessing stiff competition from other global giants like the Pernod Ricard-Allied Domecq alliance, William Grant's and Chivas Regal.

Pedagogical Objectives:

• To highlight the business hurdles being faced by Diageo
• To discuss the strategies adopted by it to retain its number 1 position in the world.

Keywords : Diageo; European economy; US dollar decline; Consumer taste; Restructuring plan; Troubled times; Mergers and acquisitions; Pernod Ricard; Competition; Managing in Troubled Times Case Study; Competitive advantage; Marketing and innovation; Diversification; Weak demand; Taxes; Future of Diageo

Contents:

• Growth of Diageo
• Troubled Times
• The Road Ahead