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Managing in Troubled Times Case Study
Case Title:
Diageo: World's Largest Spirits Company in Troubled Times
Publication Year : 2005
Authors: R. Muthu Kumar, Sumit Kumar Chaudhuri
Industry: Distilleries
Region: UK
Case Code: TRT0065
Teaching Note: Not Available
Structured Assignment: Not Available
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
