Better Essays

1. Introduction
Diageo plc is a British multinational firm that owns some of the most popular alcoholic drinks in the world. The firm boosts a reputation of not only being the largest spirits producer in the world, but also being the world 's leading premium drinks company. The company has an extensive portfolio and their most popular drinks include Smirnoff vodka, Baileys, Pimms, Blossom Hill and Guinness. The company owns 312,120 Breweries, 312,130 Wineries and 312,140 Distilleries in the world and trade in near 180 markets, and employs more than 200,000 people in about 80 countries; of which include Great Britain, Canada, United States, Ireland, Spain, Italy, Africa, Latin America,
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Investors do not like to see this and so inevitable just as quickly as the figures were announced, their shares plummeted: from 14p to £10.54 (Fletcher, 2010). It’s clear the company needs to sort this issue out and develop a strategy that will enable them to make profits in all the markets they are in. The question that needs to be asked is: Why is our strategy working in Africa and Asia but not in Europe and North America?

In 2009 Diageo announced that it was to reduce its work force in the Glasgow and Kilmarnock plants in Scotland by 900 workers. The company faced wide spread criticism from both the Scottish government and trade unions for their refusal to negotiate or adopt a compromise suggested by the Scottish government, which could have saved at least some of these workers jobs. Considering the brand had been linked to Kilmarnock for almost two centuries and most workers had been working in the plants for generations, the way in which they were treated by the company, was abominable. (Maddox 2009) This event however, highlighted a weakness between the workforce and the managers of the company which could be the source of many problems in future. If workers in other plants, as result of the Kilmarnock/Glasgow incident assume that the company views them as disposable labour, not only could the company land themselves a demotivated workforce; which in turn could lead to 'shirking
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