This report examines the strategy of Guiness PLC, a global spirits producer and marketer based in Ireland. The findings of this examination are presented as (1) a SWOT (strengths, weaknesses, opportunities, and threats) analysis, (2) an analysis of the strategic issues facing the company, (3) an evaluation of the company's strategy, and (4) recommendations for changes in strategy.
Guiness PLC is the world's second most profitable beverage company after the Coca Cola Company (Reier, 1991, pp. 25 26). A major strength of the company lies in its financial position that derives from its global market positions in beer, wines, and whiskeys (Parry, 1990, pp. 36, 38 39). The company's Guiness brand stout and Johnny Walker brand scotch whiskey are instantly identifiable names around the world. A new chair and a flexible management style promoted at the company are also strengths (Palmer, 1991, pp. 12 13; Californian, 1992, p. 17).
The major internal weakness of the firm derives from the recent insider trading scandal involving the former chair at Guiness PLC (Guilty, 1990, p. 13). The company in still in the process of recovering from this problem (Barnes, 1990, pp. 22 23). The equity loss resulting from the insider trading conviction caused the company to make line cuts (Khermouch, 1993, pp. 1, 3 5).
Even in the present environment, however, Guiness PLC is presented with several opportunities. The North American beer market is increasingly demanding quality imported brands, and several Guiness brands are benefiting from this trend Bass, Guiness, Moosehead, Pilsner Urquell, and Dos Equis (Levin, 1992, p. 38). Sparkling opportunities are opening up for the company's premium whiskey brands in Asia where business professionals are willing to pay up to $500 per bottle to be able to serve clients the scotch of their choice (Reier, 1991, pp. 25 26).
The primary threat to the company lies in the changing attitudes towards alcoh...