Financial Statement Analysis
Essay Preview: Financial Statement Analysis
Report this essay
This report gives details account of the alcoholic beverages industry. It starts with a brief overview of the industry with special interest in the premium spirits segment in the global market. Primary focus was categories of drinks such as Scotch whisky, Vodka, Cognac, Rum, Brandy etc.
It uses PESTEL framework to examine changes in external environment and the knock on effects on alcoholic beverages industry. It introduces Porter Five forces model to illustrate the attractiveness and competitive forces impacting profitability and future of companies in the industry.
The main competitors with 67% of the global premium spirits activities are Diageo, Pernon Ricard Group, Bacardi, Fortune Brands, Brown-Forman, SABMiller, etc.
The report goes on to conduct a critical evaluation of a typical company in the industry – Diageo. It gives a brief background of the company, its strengths and weaknesses using SWOT tools, resources and capabilities of the company with VRIN and Value chain.
Diageo Plc is of great interest due to their long history within the sector and reputation worldwide. Diageo is the market leader with 27% of the global market share. Premium spirits represents 66% of Diageo 2012 net sales and 77% of overall groups volume. Diageo slogan is “celebrating life everyday everywhere”.
Pestel analysis was adopted to examine changes in external environment and the knock on effects on alcoholic beverages industry. The structure and dynamic forces impacting the profitability and future of companies was perfectly illustrated with Michael Porters Five Forces.
The key success factor model was chosen to identify Diageos unique competences compared to his main rivals.