Diageo Swot Analysis

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Diageo PLC is a British multinational company that is headquartered in London. The business operates in the alcoholic beverage industry and Diageo is the largest producer of spirits worldwide and they also make beers and wine. Many recognisable brands are owned by Diageo including Smirnoff, which has the greatest sales of vodka worldwide, baileys, the largest seller of liqueur worldwide, Jonnie Walker, the best seller of scotch-whiskey worldwide and Guinness, the best-selling stout in the world. Some of Diageo’s brands have been here for centuries while others were created not too long ago. Guinness has been present since the 18th century for example. Some 180 countries purchase Diageo’s goods and 80 countries are home to the company’s offices. …show more content…

Western Europe is the exception to this. In 2012 Diageo made £3.8 million of sales their compared to £3.6 million this year. But in North America, Diageo made £178,000 more than they did when they sold there in 2012. This is the same for Africa, Eastern Europe, Turkey, Latin America, the Caribbean and the Asia Pacific area where Diageo made more money from sales this year than they did last. As well as this the company has made more money from sales in Great Britain where there has been a significant increase. In 2012 Diageo made £1.6 million worth of sales compared to £1.7 million this year. So in general in 2013 Diageo has increased its revenue from sales in most parts of the …show more content…

In 12 months it has dropped by almost £1 million and now stands at £18,673 million. This is still a credible amount and will be no immediate worry to Diageo because most of their income statement, balance sheet and changes in equity sheet have shown positive results. Overall it has been a good year financially for the business. They have performed very well in North America, Latin America, Russia and Eastern Europe. However the main disappointment of 2013 for Diageo will be its downturn of success in Western Europe. They face challenges in this region of the world. Maybe people’s opinion about this industry has changed. They still made almost 4 million in sales in Western Europe but it was a decrease from the previous year’s whereas the other regions it operates saw an increase in revenue from sales. This will be something Diageo will be keen to address in 2014. Trading conditions have become tough and economies are not booming yet Diageo made more sales and more profit this year. This resulted in more dividends which will have pleased their shareholders. These reasons are why Diageo can reflect happily on the year

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