This essay stresses that Diageo is a leading firm which is spread globally and conducts premium drinks business with a varied collection of outstanding labels. Diageo is mainly concentrated in business regarding beverages. The firm, based in UK, manufactures its products in different countries of the world like Britain, Ireland, United States, Canada, Spain, Italy, Africa, Latin America, Australia, India, and the Caribbean. Based on research, it is seen that they sell their products approximately in 180 markets throughout the world. Diageo is an established firm and, thus, has its own authority in the production and sale of wine. Diageo manages 17 out of 100 of the top world’s spirit brands. The firm emphasizes its prime focus on developing its international brands in order to capture a giant market share. Diageo is listed in the London Stock Exchange (DGE) and for its American depositary receipts it is also listed on the New York Stock Exchange (DEO).
This paper makes a conclusion that sales, accounts receivable and number of days outstanding or the turnover ratio provides a more or less indication of the firm’s current and future prospects. Economic recession has negatively impacted on the customer’s confidence and, thus, this has brought about a little negative diversion in business and its profits. “Diageo strength has driven competitive advantage in premiumisation”. Diageo faces competition from small and artisan wineries which also pose a greater threat to its market. ...Show more