...Diageo plc A Harvard Business School Case Study Part I 1) Diageo plc is a conglomerate formed in 1997 through the merger of Grand Metropolitan plc and Guinness plc, two consumer product companies. Their goal was to become an industry leader by achieving cost savings through marketing synergies, cutting overhead expenses, and developing production and purchasing efficiencies. Although diversified within the packaged food, beverage alcohol, and fast food industries, Diageo sought to focus exclusively in beverage alcohol by selling their packaged food (Pillsbury) and fast food (Burger King) enterprises. This would create more investment dollars to purchase other leading beverage alcohol companies without taking on excessive debt, thereby realizing Diageo’s goal of becoming a market leader in the industry. The company’s capital structure strategy was crucially important in terms of credit rating and predicting financial distress, and the company intended to maintain the highest rating possible to keep debt maintenance costs down. Ultimately, the company conducted a Monte Carlo Analysis to analyze the trade-off of restructuring the company’s capital structure. 2) Corporations routinely face decisions regarding new investments and must determine the best way to finance those investments. The method by which this financing occurs can have a significant impact on the overall value of the firm, therefore financing decisions must be made very carefully. Corporations finance new...
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...RUNNING HEAD: Nestlé: The Infant Formula Controversy Nestlé: The Infant Formula Controversy CASE 4 April VanRivers Adv. International Marketing March 24, 2013 1. What are the responsibilities of companies in this or similar situations? Domestic companies and multinational companies have responsibilities that portray their corporate and social stance as an organization. Many of these responsibilities are indicated in the vision or mission statement. Ethical and socially responsible conduct should be the cornerstone of any organization’s core values and strategic management process (Godiwalla & Damanpour, 2006). For an MNC, ethical and social responsibility charge becomes an imperative because it is globally conspicuous, and, its activities have global impact and ramifications (Godiwalla & Damanpour, 2006). An MNC’s activities whether they are the pursuit of rapid growth, increased market share and profits, and competitive performance, should emanate its core ethical values and socially responsible vision. A MNC’s responsibility should stem beyond financial targets and in addition focus on the well being of people, communities and the environment. A company that has a strong social responsibility statement is Diageo. Diageo is one of the top ten MNCs and is the world's largest producer of spirits and a major producer of beer and wine (SiliconIndia, 2012). Diageo's brands include Smirnoff, Johnnie Walker, Baileys and Guinness (SiliconIndia, 2012). It is...
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...Abstract This paper aims to evaluate the marketing planning process for the case of Smirnoff Ice as a top selling Diageo’s brand at the Serbian marketplace. After a brief Company profile description and its business environment, the article proceeds to discuss and evaluate steps for a full analysis of the strategic marketing planning process assessing its importance with all related assumptions. Using the material collected after comprehensive research of the Smirnoff Ice market place and assessing the Smirnoff Ice Marketing Plan, the writer of this article tried to provide answers to the questions like: why is the marketing planning process an important tissue, who makes the strategic marketing decisions, what information are used in the strategic planning process, who sets objectives and marketing mix strategies etc. Finally, the paper offers the conclusions and recommendations by summarizing the article findings, highlighting most important topics discussed. Key words: marketing plan, marketing planning process, Smirnoff Ice, marketing mix : 1. Introduction Planning is an important process which exceeds its basic role as the tool for the business decision making. According to Drucker (1955), planning is concerned with development of strategies based on an organization’s assessment of the marketplace and perceptions of managerial expectations and organizational capability. Marketing planning is an essential management process as it affects every aspect of organizational...
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...Diageo – Marketing to Remember Introduction The case is about Diageo, a drinks company and a leader in corporate social responsibility issues. The company is running a CSR program from within the marketing function. In 2007 they launched the ‘Choices campaign’, aiming at 18-to-24 age group. The campaign ended with the sentence: ‘A night to remember? Or one to forget? The choice is your’. With this they showed that responsibility is at the heart of all their marketing, with the aim to change the attitude towards alcohol. Ethical strengths - Raising awareness - Closeness to consumer provides something that public health agencies lack - Product safety - They have in-depth knowledge of consumers, the ability to get under their skin and understand what makes them behave in the way they do. - Organization succeeds by outperforming their competitors in providing superior value to their customers, in order to create a positive change in people’s attitudes to alcohol. - They do not mislead their customers - They try to ensure that consumers properly understand the risks involved in consuming their product - Brand names are not dominantly present in the advertisement, focus is on responsibility message Ethical weaknesses - Fitness for purpose - Creation of artificial wants - Reinforcing stereotypes - Targeting vulnerable consumers Issues in Product Policy i) To what lengths should the producers of goods and services...
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...How Diageo Manages its Brands A case study of Brand Asset Management (BAM) in action Diageo Industry: Global Drinks Site Scope: Brand Asset Management BAM Solution: VYRE Unify Diageo is a UK success story. With a net sales close to £10Bn*, Diageo has 25,000 employees working globally across 180 countries. It is the acknowledged market leader in the global drinks industry and its 370 brands include category leaders and household-name brands such as Smirnoff (vodka), Guinness (beer) and Johnnie Walker (whisky). Great marketing and branding are central to Diageo’s success. Creativity in advertising and promotions in particular is a critical factor. Diageo excels in this area, and Guinness for example has won numerous accolades for its impactful advertising campaigns. With a £1.5Bn* annual investment in marketing, Diageo has been keenly aware of the need to protect its intellectual property and brand assets. This paper reveals how Diageo’s industry-leading global Brand Asset Management (BAM) system helps Diageo manage its exalted international reputation and global brand ambitions. * year ended 30 June 2011 1 Overview of SmartBrand SmartBrand is the name of Diageo’s BAM system and is actively used by c. 5,000 Diageo brand, marketing, and compliance managers world-wide, and Diageo’s agencies. “ With a company of our size and complexity Smartbrand is essential in making it more effective, both at search and spin and from a compliance perspective. The site protects our...
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...Introduction There has been considerable debate on how dividend policy affects a firm’s value. Researchers such as Gordon (1959) believed that dividends increase shareholders wealth, Miller and Scholes (1978) considered dividends to be irrelevant and others such as Litzenberger and Ramaswamy (1979) thought that dividends decrease shareholders wealth. As a result, a number of studies have been undertaken to solve the “dividend puzzle”, a concept which tries to answer the question of whether paying dividends actually makes a difference or not. Many economists argue that dividends should not have any effect on the investor’s valuation of the company because the investor is an owner of the firm and should be indifferent to either getting the dividends or having them reinvested in the firm. The above conclusion, nevertheless, has proven futile as, in the majority of the cases; investors do demand some type of a dividend payment (Cohen, 2002). As a result, it’s important for firms to have a dividend policy in order which will help them make decisions regarding paying cash dividend in the present or paying an increased dividend at a later stage. The Determinants of Dividend Policy An optimum dividend policy is one that strikes a balance between current dividends and future growth and should be based on two basic objectives – maximizing the wealth of the firm’s owners and providing sufficient funds to finance growth. The determinants of a firm’s dividend policy are discussed below...
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...CASE STUDIES Burger King case study Targeting the Superfan as a means of retaining growth in the fast food market Reference Code: CSCM0246 Publication Date: April 2009 DATAMONITOR VIEW CATALYST After years of poor sales, Burger King has turned its business around and now enjoys healthy business growth. This case study looks at how the company did this by refocusing its marketing towards the Superfan, namely young adult males who have a penchant for fast food. SUMMARY • Diageo was accused of neglecting Burger King under its ownership, letting the brand fall off the radar at a time when fast food in general was reporting favorable growth. The fast food chain's fortunes began to change after it was sold to a private equity triumvirate, which set about investing in promoting the business to the devoted fast food eater. This focus was a success, leading Burger King to gain 'cool status' in many peoples' eyes and to achieve strong growth. • Burger King's focus since being sold has been in targeting the Superfan, that is the 18–35 year old male who enjoys fast food. Company marketing efforts have focused on appealing to this consumer type, using both traditional and new media as a means to gain their attention. • Burger King's marketing has often been controversial, with two 2008 efforts standing out. The Whopper Virgins documentary, in which members of remote communities were given burgers to try for the first time, was deemed offensive and patronizing, while a Facebook...
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...Constellation Brands is a company created in 1945 in New York. This company is known for being the largest multi-supplier of alcohol in the United States while manufacturing and distributing wines, spirits, and beers. Some of their brands include Corona Beer, Svedka Vodka, Nobilo Wines, and more with over 100 brands. As of 2017, Constellation Brands has a revenue of over $7 billion with 57.7% of their net sales coming from beer. Their strategic and financial imperatives focus mainly on the increase in the sales of their spirits, which they feel will benefit their company most. Constellation Brands is a part of the global alcoholic beverage industry (composed of producing beer, wine, and spirits) along with competitors Diageo, Beam Suntory,...
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...http://topcompaniesindia.com/liquor-companies-in-india/ Liquor companies In India are not only doing well in the country but they have huge market share in the international market as well. Many renowned liquor brands across the globe are supplied by these Indian Companies. Here is the list of top liquor companies in India based on their market capitalization. United Spirits Limited USL is the leading players in the liquor industry and is not only the best in India but it is known as one of the best in the world. With more than 140 brands of liquors, the company is known globally for McDowell’s No.1, Royal Challenge, Black Dog, and Signature Antiquity. The company has 59% market share. * Owner- Vijay Mallya * Address- UB Tower, #24, Vittal Mallya Road Bangalore- 560 001, Phone no- 91-80-39856500, +91-80-39856959 * Website http://unitedspirits.in * Email: contactus@ubmail.com United Breweries The largest selling beer in India, Kingfisher is the flagship brand of United Breweries. The brand is won many awards and has been considered as one of the largest selling beers in the international market as well. This is one of the top 10 fastest growing brand in the UK. * Owner- Vijay Mallya * Address- Level 3, 4 & 5, UB Towers, UB City, 24 Vittal Mallya Road, Bangalore – 560 001, India. * Phone no- +91-80-22293333/22272807 * Website- http://unitedbreweries.com Email enquiries@ub-global.com Radico Khaitan One of the oldest and largest...
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...PEST Analysis (government intervention) Political Smirnoff is manufactured by Diageo which is operating in India, Ireland, Italy, the United Kingdom and the United States. Diageo’s Plainfield facility is located in Plainfield, Indiana, 36 miles southwest of Chicago, and is Diageo North America’s largest bottling facility. The facility’s grand opening was in August 2013, following a more than $120m investment to transform the site, including the installation of new high-speed bottling lines and enhancements to other key areas to grow production capabilities and efficiency The tax policy of Liquor in Indiana is $2.68 per gallon. Charged at $0.47/gallon if under 15%. Trade restrictions in Singapore. Singapore is generally a free port and an open economy. More than 99% of all imports into Singapore enter the country duty-free. Tax policy in Singapore. (All goods including alcohol is subjected to 7% GST unless granted duty-free concession .) political stability Source : http://www.theglobaleconomy.com/Singapore/wb_political_stability/ Singapore Political stability index (-2.5 weak; 2.5 strong): For that indicator, The World Bank (govindicators.org) provides data for Singapore from 1996 to 2014. The average value for Singapore during that period was 1.14 points with a minumum of 0.83 points in 1998 and a maximum of 1.34 points in 2012. Demerit good ( merit bads ) Generally regarded as demerit good, thus high excise taxes imposed in Singapore. For social...
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...engage in corporate social responsibility activities. The debate in CSR is nowadays still focused on the link between CSR and financial performance. Research lacks real proof of this link and corporations are failing in formulating a business case. So why is it that MNCs are willing to engage in CSR activities. In the following thesis I would like to give an answer on this question. Inhoudsopgave 1. Introduction 5 1.1 Research Purpose 6 1.2 Problem Statement 6 1.3 Sub questions 7 1.4 Structure 7 2. Theory 8 2.1 Definition CSR 8 2.2 Definition Multinational Corporation (MNC) 9 2.3 Theoretical Framework (Garigga & Mele (2004)) 10 2.3.1 Instrumental theories 10 2.3.2 Political theories 12 2.3.3 Integrative theories 13 2.3.4 Ethical theories 14 2.3.5 Propositions 16 3. Methods 18 3.1 Research approach 18 4. Results 19 4.1 Instrumental motive 20 4.2 Political motive 20 4.3 Integrative motive 21 4.4 Ethical motive 22 5. Conclusion & Recommendation 24 5.1 Conclusion 24 5.2 Limitations & Recommendation 27 6. References 28 1. Introduction Corporate social responsibility is becoming more and more important for companies. The last few years there is an increase of interest from companies in CSR and in the implementation of different CSR activities in their day-to-day businesses. In general, corporate social responsibility encompasses the responsibilities that businesses have towards society. These responsibilities can vary...
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...been a source of profit with undeniably high demand. The case study by Michael Roberto examines the history of wine and winemaking, and describes the very process of growing the grapes, maintaining the vineyard, fermenting and aging the wine, bottling, packaging, marketing and distribution. The author of the case study thoroughly describes the basics of winemaking, traces the history of wine to the modern day, analyzes the current wine market and competition, presents relevant data, and analyzes the implications of wine market upon Robert Mondavi and his company. The advantages of investing into the winemaking business are quite obvious. Wine industry never slowed down exhibiting constant growth of 1-2% over the years. According to Roberto, there are over 1 million wine producers worldwide with various representation in different parts of the world that share yearly profits of $130 to $180 billion in retail sales (p.1). Robert Mondavi’s winery, described in the case, proved to be a profitable business that showed a substantial growth rate of 28% since fiscal year 1994 and market value of $600 million (p.1). Wine industry is a very profitable business that is an excellent target for investment. I would invest into a reputable and growing winemaking company with no reservations. Robert Mondavi has a significant advantage over the smaller independent wineries due to the name recognition after the efforts to advertise the company and its products. Robert Monbdavi’s business has established...
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...RESEARCH PAPER A Comparative Study of BTL in Building up the Brand In Indian Spirit Market In Case Of Royal Challenge against Royal Stag Whisky Praveer Gupta The main objective of the working paper is to understand the performance of Royal Challenge Whisky since its inception and to measure the potential of Royal Challenge brand as a premium segment whisky. This also explains the role of BTL strategies carried out so far and a few consumer insights about the market so as to forecast its position. Page | 1 RESEARCH PAPER Abstract Royal Challenge Whisky brand was launched in 1886 by Shaw Wallace & company. The brand had a healthy growth of about 10 percent till 2005 when the company was bought by the country’s largest spirit maker United Spirits Limited. RC had sales above one million cases in the year 2003-04 with a market share of 56 percent in the premium segment whisky which had grown to 65 percent at the end of December 2003 in competition with UB Spirits Division’s Signature Whisky and Seagram’s Blenders Pride. Over the year, UB kept working on the brand to bring up the same position by various marketing activities like linking the brand with IPL cricket Team (Royal Challengers Bangalore) and an associate sponsor of India's first Formula 1 team Force India etc. In 2014, Diageo bought majority stake in USL and came up with pricing strategy to decrease the prices in order to retain the market share, while other companies such as Pernod Ricard were ...
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...Note: Solve any 4 Case Study’s CASE: I Managing the Guinness brand in the face of consumers’ changing tastes 1997 saw the US$19 billion merger of Guinness and GrandMet to form Diageo, the world’s largest drinks company. Guinness was the group’s top-selling beverage after Smirnoff vodka, and the group’s third most profitable brand, with an estimated global value of US$1.2 billion. More than 10 million glasses of the popular stout were sold every day, predominantly in Guinness’s top markets: respectively, the UK, Ireland, Nigeria, the USA and Cameroon. However, the famous dark stout with the white, creamy head was causing some strategic concerns for Diageo. In 1999, for the first time in the 241-year of Guinness, sales fell. In early 2002 Diageo CEO Paul Walsh announced to the group’s concerned shareholders that global volume growth of Guinness was down 4 per cent in the last six months of 2001 and, more alarmingly, sales were also down 4 per cent in its home market, Ireland. How should Diageo address falling sales in the centuries-old brand shrouded in Irish mystique and tradition? The changing face of the Irish beer market The Irish were very fond of beer and even fonder of Guinness. With close to 200 litres per capita drunk each year—the equivalent of one pint per person per day—Ireland ranked top in worldwide per capita beer consumption, ahead of the Czech Republic and Germany. Beer accounted for two-thirds of all alcohol bought in Ireland in 2001. Stout led the...
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...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...
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