Issues in Global Business & Consultancy

Diageo further expansion into Emerging Market

Case on DiaGEO

Issues in Global Business & Consultancy

Submitted To: Simon Gee

Submitted By: Muneeb Hussain

BA (Honours) in Business Studies (Online)

Managerial Finance 2011-2012

1. Executive summary

The enormous population and economic growth in the emerging market have shown to be a attractive to any Global business who wish to expand their current business line. Research conduct on this market has reported that within 10 years emerging market will represent 65% of the GDP growth worldwide adding 1.4 billion people to middle class families therefore the path for growth for any company will be in the emerging market (C. K. Prahalad, 2009)

In order for Diageo to compete it cannot afford to overlook this fact. Among the other benefits of investing in emerging markets are:

* Lowering overall cost of production by gaining economic of scale and country based competitive advantage (Hill, 2010).

* Bring new ideas and innovation of cost reduction that can be used globally

* Increasing revenue when other developed market are stagnant

This report will analyze the current position Diageo is in the emerging market and will also identify key issues and certain option available for Diageo to further expand in Emerging market.

* Diageo current position

* Investigate current strategy employed in that market

* Implication in Emerging market

* Options available for Diageo

The concept presented in this report acts in accordance with best practice compiled from updated subject literature.

Table of Contents

Table of Contents

1. Executive summary 2

2. INTRODUCTION 4

3. current Position 5

4. global geographic postion in emerging market 6

5. current postion industrial enivironoment 7

6. Key issues facing Diageo in Emerging Market 8

7. Further Expanding into Emerging Market 10

8. COnclusion 13

references 14

Appendix 1 15

Appendix 2 16

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