DIAGEO PLC

Diageo PLC - Financial Analysis

TABLE OF CONTENTS



OVERVIEW OF THE COMPANY1

BUSINESS OBJECTIVES OF DIAGEO PLC2

DIAGEO PLC'S STRATEGIC PLAN2

ACCOUNTING POLICIES ADOPTED BY DIAGEO PLC IN 20114

EVALUATION OF THE FINANCIAL PERFORMANCE6

Ratio Analysis6

Profitability Ratio6

Liquidity Ratios8

Debt Management9

Asset Management10

Investors Ratios11

KEY FINANCIAL ISSUES FACED BY DIAGEO PLC12

Economic Growth Rate12

High Fixed cost12

High Advertising Expenses12

Capital Requirement13

Other Taxes and Duties - Spirits13

Domestic Goods Prices - Agricultural - Crops - Grains13

Risks impacting on the future potential of Diageo PLC13

NON FINANCIAL FACTORS AND RISKS IMPACTING ON THE FUTURE14

CONCLUSION15

REFERENCES17

APPENDIX19

Diageo PLC - Financial Analysis

Overview of the Company

Diageo is a company that is based in London. It produces a premium drink that is a collection of exceptional alcohol brands. The company eicsts due to the big merger that took place in 1997 between Grand Metropolitan and Guinness, and the people who have contributed to the Diageo PLC formation. These people are the executives; at PLC it is Anthoney Greener , at Guinness it is Philip Yea and at Grand Metropoliton it is John McGrath and George Bull. Diageo PLC is the biggest manufacturer of the Spirits alongwith wine and beer.

Diageo PLC is listed in the London Stock Exchange and the symbol of Diageo is DGE. Primarily it is listed on the London Stock Exchnage, while part of it is listed on FTSE 100 Index. Due to its global vision and attention to local mar- Management and Marketing, Diageo offers consumers an excellent collection of spirits, wine and beer. Famous brands are Smirnoff, Johnnie Walker, Guinness, Baileys, J & B, Captain Morgan, Cuervo, Tanqueray, Beaulieu Vineyard wines and Sterling Vineyard.

Business Objectives of Diageo PLC

Diageo's aim was to retain the leading company position and winning new markets. Even though that the IT strategy of the company was easy to determine it was thought difficult to implement. The objectives were: particular attention to growth in North America, maintaining price European markets, expansion into newer markets framework of, such as Russia, China and Brazil, the satisfaction regional needs and to help local markets in the allocation of business functions. While the company's approach to IT was important to the local rated level, Diageo was faced with the task of increasing the rate of and effectiveness of all its activities. A set of solutions for enterprise resource planning enterprise relationship management with clients, Tami, supply chain management, and other special and differential solutions were used in a decentralized infrastructure of the company. After purchasing a new license SAP Architecture Team Diageo began working with SAP consulting for the time being i.e. card processing implementation, which could be used Vat as a guide to the implementation of mySAP Business Suite in Diageo's over the next five years. Map implementation could also help the company determine the STR i.e. its own optimal use of open integration SAP NetWeaver platform.

In short, enterprise architecture services are flexible solutions, not just packaged program software's, which a person can buy and install. Although SAP consultants originally paid special attention to business processes Diageo, they are also used Wali map implementation to develop ...