Exothermic Reaction Definition

Expansion of Diageo Plc. - Free Essay Example

Sample details Pages: 9 Words: 2689 Downloads: 5 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Level High school Did you like this example? DIAGEO PLC Introduction, Company Profile and Current Strategy Diageo is one of the worlds largest alcoholic drinks companies, leading the global market in flavoured alcoholic beverages (such as Smirnoff Ice), and spirits. In this regard it is still very similar to several of its major rival companies, including Allied Domecq, Pernod Ricard or CCU, all of who have varied alcoholic drinks portfolios. Where Diageo has differed from its rivals in recent years, however, is the way in which its wine business has been somewhat overlooked in comparison to the development of its global priority brands, which have mainly been centred on spirits, as well as its flavoured alcoholic beverages. The strategic review undertaken in the case study has the potential to alter this state of affairs, and the company may wish to look at possibly extending its presence in the premium New World wine segment, taking on its rivals head on. Diageos decision will likely depend upon s everal factors, with the key factor, likely to support growth in wine, being the growth potential of premium wine, particularly in the light of recent health claims made about the benefits of drinking red wine and dangers of spirits consumption. In addition, the company has endured a decline in its flavoured alcoholic beverage business, again like its competitors which have seen this particular sector begin to lose its fashionable appeal. However, through extending its wine offering, Diageo will intensify the competition between itself and companies such as Pernod Ricard or Allied Domecq, as well as more wine-centred companies including Kendall-Jackson or Constellation Brands. All four of these companies have portfolios which are similarly prioritised around Californian premium wines. A merger, or acquisition, may be the best way to achieve a strong presence in the wine sector, as consolidation continues to be strong amongst wine firms. The global wine industry has yet to settle down from the period of intense merger and acquisition activity witnessed over the last few years. The acquisition of BRL Hardy by Constellation Brands in 2003 was the first major salvo, creating an environment of consolidation which remained in early 2005, with EJ Gallo acquiring Barefoot Cellars and the integration of Robert Mondavi into Constellation Brandss fine wine division, not to mention Diageos own acquisition of Chalone. (Diageo Plc, 2005) External Environment Opportunities and Challenges An analysis of the external environmental opportunities and challenges facing Diageoà ¢Ã¢â€š ¬Ã¢â€ž ¢s wine business, in some of its major markets, is based primarily on the fact that the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s portfolio is firmly rooted in the still light grape wine sector. It does have a few rosÃÆ' © and sparkling wines, notably extensions to the UK-focused Blossom Hill, but these are unlikely to have a significant impact on the companys sales going forward despite the pre dicted growth of around 27% in the UK still rosÃÆ' © sector and 6% in UK sparkling wine. Within its other key markets, Spain and Ireland, Diageos wine portfolio is likely to see mixed results. Whilst in Ireland, which has come late to wine-drinking, the potential of an immature market is apparent. Increased interest in wine as consumers develop more sophisticated tastes is expected to lead to growth of around 92% in red wine and 80% in white wine, offering Diageo great potential once its distribution channels have been widened. In contrast, the Spanish wine market is much slower, suffering from maturity and the same change in family habits that has had such a negative impact on the French wine industry. As a result, static growth rates are expected, although it is likely that with Spanish consumers exchanging quantity for quality, the potential for Diageos premium wine portfolio remains. In the US, where wine drinking is still a relatively new activity, the growth potential fo r the companys wide premium wine portfolio is good. Red wine growth of around 26% is anticipated over the five years to 2009, as US consumers grow increasingly interested in wine and sophisticated in their tastes. This growth will be significantly faster than the developed UK market, which is expected to grow only by a further 3% in total as it matures. Diageo CEO has earmarked four markets which he wishes to expand, Brazil, India, Russia and China. In Brazil, where the company is already active, the red wine market is anticipated to grow by around 14% in volume, suggesting positive forward growth as domestic production continues to grow, encouraging more widespread wine-drinking, particularly for reasons of health. Here, white wine growth of just 4% will be significantly slower, but nonetheless offers organic growth potential. India, Russia and China are all significant immature markets, expected to enjoy dynamic wine growth in the 2004-2009 period, as all three countries see an increasingly westernised lifestyle. Although Diageos New World-focused portfolio may be slower to enjoy the benefits of growth, with these markets particularly enjoying wines from the Old World producing countries such as France, there is certainly medium-term potential, particularly with the benefit of the work being done to widen distribution channels. In Russia, the development of a market for domestic wine may also dampen Diageos growth rate. Only in China is red wine growth expected to outpace that of white. In Russia, both white and red wine are expected to grow at very similar rates of between 28% and 29%, whilst in India white wine is likely to grow more rapidly, at around 81% compared to 74% for red, due to its lower base. (Global Market Information Database, Mar 2005) Industry Environment The wine industry environment, as a whole, is particularly susceptible to fluctuations in supply arising from weather-related factors that influence the volume and quality of the a nnual grape crush harvest. In 2004, a shortage of wine in Western Europe resulted in increased prices, leading to slower volume growth and consumers switching to cheaper alcoholic alternatives such as beer. In the previous year, however, oversupply had caused the opposite effect, with a glut of wine volume driving down prices and value in the industry. As a result, the wine industry needs more effective coordination between producers in order to ensure a steadier level of global supply. A long-term challenge facing the global wine industry is the underlying trend away from wine consumption in major traditional markets such as Italy, France and Spain. Changes in the pattern of life in these countries, with consumers increasingly rarely drinking wine at lunch, have led to falling consumption per capita of wine, with younger consumers often preferring alternatives such as FABs, soft drinks or water. Specific marketing towards younger consumers in these markets, and continued expansi on of wine distribution in developing markets are two key strategies in confronting this challenge. Manufacturers also face increasing competition from outside the wine industry, with the growing popularity and heavy marketing of beer, FABs and soft drinks. In response, manufacturers are seeking to make wine accessible to an increasingly wide consumer, whilst retaining the products social cachet. Celebrity endorsement, product placement in films and the broad-based promotion of a culture of wine connoiseurship are central strategies in wine marketing. As consumers grow increasingly health conscious in both developed and developing markets, demand for beverages with a high alcohol content continues to diminish. This presents wine manufacturers with an opportunity to emphasise the potential health benefits of wine, particularly when compared to the health risks of high alcohol-content spirits that are the customary drink in certain regions such as Eastern Europe. Increasing consoli dation in the highly fragmented global wine industry has arisen due to the significant growth opportunities in developing regions, and the success of global brands of New World wines such as the USs E J Gallo and Australias Jacobs Creek. As such, the key challenges and strategies for the next few years fall into a few distinct categories: Destabilising fluctuations in supply: There is a need to coordinate between producers to maintain steady level of supply, and the use of available technology to prevent the damaging effects of over, or under, supply. Declining consumption in traditional markets: This must be countered by the promotion of premium wines in developed markets, and increased distribution and education in emerging markets. Increased competition from non-wine drinks: This is already being tackled by cultivating a sophisticated, yet accessible product image for wine. Health trends away from alcohol: This has long been dealt with by the promotion of the appa rent health benefits of wine, and the development of organic and low-alcohol variants. Increased consolidation in global industry: This is causing geographical and sector expansion via acquisition, global branding, and an increasing focus on the key growth sector of premium wines. (Global Market Information Database, Sep 2005) Recommendations for the CEO SWOT Analysis Strengths Diageos broad geographical coverage acts as a cushion against economic uncertainty in any one particular region. The company is becoming increasingly recognised for providing a positive working environment, and being a good place to work. High levels of employee loyalty will help the company through difficult periods. Diageo recognises the importance of building international brands, which enhances its sales potential. A broad wine portfolio means that the company is reasonably insulated from undesirable fluctuations in consumer confidence, through its affordable labels, but can also o ffer the aspirational consumer, higher-priced reserve wines. The acquisition of the Chalone Wine Group, which was completed in February 2005, adds several premium Californian wines to Diageos portfolio, which significantly increases the companys profile in the wine industry. Focused marketing of Blossom Hill in the UK has paid off, with significant volume increases during fiscal 2004. Taking control of its North American distribution through dissoliving its joint venture with MoÃÆ' «t Hennessy gives Diageo greater control over its marketing in this region as well. Weaknesses Insufficient marketing resources are being put towards the companys wine brands in comparison to its spirits business. The lack of any major wine strategy reflects a lack of commitment to Diageos wine portfolio. The company has not established itself fully in the UK premium wine market, with both Blossom Hill and Piat DOr more mid-priced wines. The lack of a major global brand is a dis tinct disadvantage in an industry which is becoming increasingly focused on branding. Diageos portfolio remains incomplete without ownership of an Australian brand, and also suffers from lack of participation in the Chilean or Argentinian wine industries, which are increasingly popular in key markets such as the UK. Opportunities The UK wine market is proving to be more resiliant against private label wines than may be suggested by the growth of private labels elsewhere in the retail sector. Strong growth in both still red and white wines is forecast in the US market over the 2004-2009 periods. This will help to boost sales in the companys most significant overseas market. The companys domestic market, the UK, is a showcase market, where consumers are happy to experiment with wines, providing a wide market for Diageos products. Red wine sales are likely to continue to benefit from medical and scientific research findings indicating that it offers health benefits to regular, moderate drinkers. Recent studies have suggested red wine may help improve coughs, lower blood pressure and, reduce the risk of lung cancer. There is considerable growth potential in Norway and Ireland. Although sales in these countries are growing, they are not yet at the same level as other Western European countries. As Diageo is currently well represented in Europe, it is in a strong position to further exploit these markets. The trend towards premium wines offers growth potential to several of Diageos brands including Sterling Vineyards, Beaulieu Vineyard and Barton Guestier. Threats Continued fears about the social impact of alcohol abuse may lead to the reduction of Diageos market as consumers are encouraged to turn away from alcohol. Any changes in excise levels in any of its markets could have a negative impact on the companys margins. As a British company, with significant overseas sales, the company is at the mercy of fluctuating exchange rate s, when a strengthening pound, particularly against the US dollar may impact negatively on revenues. Falling sales of spirits brands could lead to an international price war, which could drive down both the companys revenues and margins. There is increasing competition from small, artisan wineries throughout California, which could impact Diageos Californian wines. Greater emphasis is being placed on anti-drink/driving campaigns in some traditional wine-drinking countries, such as Spain, which is a key market for Diageo. Conclusion Further global expansion is definitely possible for the Diageo CEO, who has pinpointed several geographic markets into which he wishes to increase sales, including the growth areas of Brazil, India, Russia and China. All of these markets offer potential for its wine business as well as spirits, and the company should be able to gain economies of scale were it to share distribution channels with its extended spirits business. Further expansi on of the companys wine portfolio could be considered in New World wine producing areas such as Chile or Argentina, which are also growth areas and popular sources of wine in key markets such as the UK. The company already has Latin American operations in the form of its Monte Xanic wine, acquired through the purchase of Chalone Wine Group in 2004. The wine business of Chilean brewer CCU may well make a good fit within an expanded Diageo Chateau Estate Wines. Diageo could also look to Australia for further expansion, as it still lacks wine from this region. It is unlikely that Diageo would stretch itself as far as attempting to acquire Southcorp alone, as Fosters has been attempting since early 2005. Nonetheless, Diageo could be in the running either to participate in a joint venture to bid to part-own Southcorp, or to pick up any of Fosters wine business that it would need to divest following a successful takeover of its rival. As the worlds leading producer of spirits, Diag eo is an attractive company, most notably for its eight global priority brands which include JB whisky, Smirnoff vodka and Tanqueray gin. The company is at risk, however, from losing its premier position in the global spirits market once South Korean spirits maker Jinro, currently ranked second in the market, is sold at the end of March. Should the buyer be Diageos key rival Allied Domecq, this would have serious implications for Diageos global position. Should this happen, an alliance or merger activity between Diageo and Pernod Ricard should not be ruled out. The latter is rumoured to have been investigating the possibility of a takeover of Allied Domecq since early 2005, and here again Diageos dominance of the market is at risk. A merged Jinro/Allied Domecq would also well prove too large a proposition for Pernod Ricard, leaving it to look elsewhere for consolidation and Diageo would be a good fit, although there would be some clash within the joint Californian wine portfolio. Diageo is unlikely to be approached with regard to its wine business alone, because of its lack of a major global brand, which is an essential element of any major wine company. Although Diageo has one ace up its sleeve, current UK still light grape wine market leader Blossom Hill, its history of underinvestment in its wine business and falling volumes in its established Californian portfolio, combined with its lack of a true global brand makes Diageo an unattractive proposition from this point of view. As such, Diageo needs to rapidly and dramatically increase its marketing and branding expenditure in its wine business, if it wishes to gain the necessary regard to be able to enter into joint ventures and alliances with major companies. One way of doing this would be to look towards acquiring a smaller company, with one or two recognised brands, and leveraging Diageoà ¢Ã¢â€š ¬Ã¢â€ž ¢s main strength: its brand development skills and expertise, to developing these brands, and thus t he whole companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s global wine image and potential. Alternatively, the firm could try to make Blossom Hill a truly global brand, however this would require a large investment of time and expenditure, and may be beyond even Diageoà ¢Ã¢â€š ¬Ã¢â€ž ¢s branding skills. References Diageo Plc. (2005) www.diageo.com. Accessed 26th December 2005. Global Market Information Database (Mar 2005) Diageo Plc. Euromonitor International. Global Market Information Database (Sep 2005) The World Market for Wine. Euromonitor International. Don’t waste time! Our writers will create an original "Expansion of Diageo Plc." essay for you Create order

School Finance Paper Free Essays

Connie Findley University of Phoenix June 14, 2010 School Finance Issue Paper There is a popular myth that government sponsored public education is cost free to students, families and teachers (Darden, 2007). The economic crisis has resulted in a wave of reduced funding sources for school districts around the country. As state and city budgets have been slashed, the consequences for districts are dire (Trainor, 2010). We will write a custom essay sample on School Finance Paper or any similar topic only for you Order Now Debates about how to improve public education in America often focus on whether government should spend more on education. Federal and state policy makers proposing new education programs often base their arguments on the need to provide more resources to improve opportunities for students (Lips at el. , 2008). The increasing number of budget cuts have left teachers, administrators, families footing the bill for classroom materials. The challenge has become to provide essential school supplies and classroom materials despite millions in budget cuts. Many districts has raised dozen of school fees for various students activities and added many items to school supply lists every year (Dyrli, 2008). In recent years there has been a great interest in the effect of school resources on academic achievement ( Froese, 1997). Answering whether spending more on public education improves academic achievement begins with establishing how much the United States spends on education. In 2007, the federal government spent $71. 7 billion on elementary and secondary education programs. These funds were spent by 13 federal departments ad multiple agencies. The Department of Education spent $39. 2 billion on K-12 education. The largest programs in the Department of Educations budget were education for the disadvantaged and special education (Lips at el. , 2008). The monies dedicated to states from the federal government is earmarked for certain programs. Allotted monies for school resources do not always equate to materials for classroom instruction. Many people believe that lack of funding is a problem in public education, but historical trends show that American spending on public education is at an all-time high (Lips at el. , 2008). Acknowledging that education excellence cost money, the vast majority of school districts have a tough time keeping pace. Schools are tempting to use several solutions to combat the budget crisis. Schools are collecting fees from parents, they can pretend not to notice as teachers quietly bear the expenses as an act of caring, or solicit or accept dollars that come from third-party sources (Darden, 2007). Academic researchers have sought to answer the question of whether education expenditures are correlated with student performance. However, there is a lack of consistent evidence on whether education expenditures are related to academic achievement. Despite the lack of consistent finding, leading researchers in the area acknowledge that any effect of per-pupil expenditures on academic outcomes depends on how money is spent, not how much money is spent (Lips at. el. , 2008). Existing evidence indicates that the typical school system today do not use resources well at least if promoting students achievement is the purpose. The high and increasing percentage of funding is allocated to non-classroom expenditures is evidence of the need to improve resource allocation in the nation’s public schools. According to the National Center for Public Education Statistics, only fifty two percent of public education expenditures are spent on instruction. This percentage has slowly been decreasing over recent decades (Lips at. el. , 2008). One problem school districts are facing is shrinking enrollment. These school districts are left with vacant buildings and hundreds of thousands of dollars tied up in desk, chairs, office supplies and equipment, computers and textbooks that may eventually find their way to the dump. At the same time, districts in growing communities struggle to accommodate an enrollment expansion with limited funding, facilities and equipment. Administrators may be forced to purchase and temporary classrooms (Trainor, 2010). One of the major areas that school administrators are focusing on is technology in the classroom. While many teachers are bearing the cost of glue, paper, pencils and other classroom materials essential for achievement, school officials are providing funding for instructional computer programs to help increase reading and math achievement. While purchasing new computers is not always an option many school districts are finding ways to provide computers without overspending. In an effort to reduce cost, some school technology leaders have formed groups to negotiate pricing with firms selling refurbished computers. Because every computer in a school setting does not need the most sophisticated capabilities, refurbished models provide access as well as word processing and other basic programs at an affordable price (Trainor, 2010). Providing updated and current textbooks is another recurring cost that school systems face. There is a large used textbook market which has existed for decades. Districts around the country regularly sell retired textbooks. Sometimes school systems replace relatively new textbooks because of a change in curriculum requirements (Trainor, 2010). School systems are wasting money of textbooks each year due to purchasing books that are already retired or by purchasing an older edition of a textbook. Teachers are using creative ways to supplement curriculums and information not found in textbooks but are required by the state to teach. School districts need a willingness to explore the possibilities of learning about the other three Rs: reduce, reuse and recycle (Trainor, 2010). When budgets are tight, district administrators must sometimes choose between supplies and other needs. To help bridge the gap, many teachers are buying more material than ever for their classrooms. The most recent study by the National School Supply and Equipment Association found that in the 2005-2006 school year, teachers spent and average of $552 on school supplies and instructional material (Dyrli, 2008). Some school systems have found themselves in court over the idea of providing a free education while asking parents to pay for school activities. In April 2006, the Indiana Supreme Court struck down Evansville-Vanderburgh School Districts $20 school activity fee, saying it was the equivalent of tuition charge and therefore violated the state constitution. The money was used to pay for music, drama, nurses, school counselors, alternative education and other needs. This fee was an attempt by this school system to balance the budget (Darden, 2010). One of the perks that teachers could look forward to during tax season is the tax credit offered to teachers. California Public School teachers in 2004 found out right before school started that they would no longer be able to deduct the cost of school supplies from their taxes. California cancelled its Teachers Retention Tax Credit, hoping to save about $400 million over two years (Vail, 2004). Nationally, teachers have similar, though much lower tax program for supplies. Most school districts have classroom budgets for such expenses, but teachers frequently dip into their own pockets to supplement the budget. The general public does not understand how much teachers spend out of their own pockets just to be able to do their jobs, but they do it because it’s the best for the students and they want the students to learn, achieve and be successful (Vail, 2004). Tax payers have invested considerable resources in the nation’s public schools. However, increasing funding if education has not led to similarly improved student performance (Lips at. e. , 2008). School systems across the country are now looking for ways to supplement their restricted and strained budgets. Many are looking at purchasing refurbished computers, recycled classroom materials, charging fees to parents and adding more supplies to back-to-school list. While these efforts are not in vain they are only a starting point. School district are going to have to solicit funding from private corporations, form partnerships with business in community and find raise to help supplement declining funds. What does this mean for students and teachers? Teachers continue to purchase classroom materials essential to help students master core goals. Students are having to adjust to larger classrooms, sharing materials and equipment while goals and standards continue to rise. Teachers will have to bear the burden to meet federal mandates while working with less than adequate supplies. These barriers will force teacher and parents to provide creative alternatives for learning and building stronger relationships with each other in order to provide students with more learning opportunities. Reference Darden, E. (May, 2007). School law show me the money. American School Board Journal, 44-45. Dyrli, K. (2008). School supplies on a budget. World Wide Web. htp://www. DistrictAdministraton. com. Froese, V. (1997). The relationship of school materials and resources to reading literacy: An international perspective. University of British Columbia, Vancouver, Canada. Lips, D. , Watkins, S. , and Fleming, J. (2008). Does spending more on education improve academic achievement? Backgrounder: The Heritage Foundation of America, 2179. Trainor, C. (2010). The other three rs. American School Board Journal, 50-51. Vail, K. (2004). Tax credit for school supplies? Maybe not. American School Board Journal, 8. How to cite School Finance Paper, Papers

A comment of Mercutios death scene and a comment on Shakespeares stagecraft Essay Example For Students

A comment of Mercutios death scene and a comment on Shakespeares stagecraft Essay Leading up to Mercutio death scene; a public place: Mercutio and Benvolio enter and they talk about Romeos supposed romance with Rosilline and they laugh and joke about the fact he is besotted with her. But in actual fact hes truly in love with Juliet! Then the conversation turns to Tybalt The king of cats, cats meaning trouble. Romeo enters and they laugh about what he did the night before, Romeo gave them the slip. and they carry on laughing at Romeo and the way he has acted over the last few days. Enter nurse, the nurse comes in and conversation, and Mercutio joke and joshes with the old lady and sings An old hare hoar and being rather rude. Benvolio and Mercutio leave. Act three: scene 1, a public place. Hot day and every body is stiferling and moody. Benvolio and Mercutio talk about the king of cats and the way he Sword fights. Enter Tybalt and asks where Romeo is, Mercutio and Benvolio are reluctant to tell. Enter Romeo and they argue, Mercutio steps in a draws his sword they fight Romeo pulls them apart and Tybalt makes a lunge at Romeo, he misses and stabs Mercutio. Mercutio falls to the ground and he cries out where is my page, go villain fetch a surgeon. The page goes and gets a surgeon, Tybalt has fled, page is back and helps Mercutio up before he leaves Mercutio says a plague, a plague on both your houses he has realized that the war between the two houses is stupid and outdated. Tybalt is back and Romeo and he fight, Tybalt falls is caught. Shakespeare stage is very sophisticated, before his death Mercutio is seen at his best laughing and joking around and trying to act the fool, this is good as I think Shakespeare wanted people to think that at heart Mercutio wasnt just a argument starting person. Mercutios death scene is important as it shows us how gallant Romeos friends are and that they would do anything to help him. Mercutio up to this point is an important character as he provides the comic relief. You seen the best before death scenes in many of Shakespeare pieces and his style of writing is ti include a harsh point then add a funny point to that, like when Mercutio is talking about Tybalt and how he is a good fighter Shakespeare add a slight bit of humour to it, by saying he is the King of cats and this type of dry humour can be seen all over Shakespeares writings. I would say that Romeo and Juliet is a black comedy as it combines death, love, and friendship but also has a dark and sometimes funny side, and thi s can be seen in the Death scene when Mercutio say Ay, Ay, a scratch; marry, tis enough and then laughs. Over all Mercutios death scene is a power and striking one, and really starts the downward spiral for Romeo. Shakespeares sense of humour and stagecraft make this one of the most powerful scenes in the play.