Pestel Diageo

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The cost of Shipping is another economic downfall for Diageo. Diageo has production lines all over the world and produces different stages of particulare products all around the world. For example within Europe Ireland is the main producer of Guinness and is also a brewer for brands such as Budwiser and Carlsberg. Diageo Ireland is one of Irelands biggest exporters accounting for approximitly 1 billion euro of its annual exports.(point)

Putting the cost of distributing products all around the world by shipping or by air aside. The cost of tariffs and import taxes and fees all add up. In Some parts of the Globe for example in parts of India, imported products are strictly controlled by corrupted political groups. It is markets like these that Diageo have to cautious of, which is why the organization is very strategic and selective of whom they distribute to.

Technical factors

As the technology developed, it also helps to grow organizations like Diageo who are in alcohol business by developing of innovative techniques maturation, manufacturing, and packaging of product. Companies like Diageo are using technology in marketing of company and product like giving add on youtube, making a page on facebook etc, so more and more customer get to know about their product. And user can give feedback regarding the product and service.

Legal factors

In each country govt. has set the age limit of drinking, and to follow that company have to write the warning on the product that it should not be sell to minor if company don’t do it than the Gov. will take strict action against it. As the Diageo comes under the F&B department, so they have to be careful that they are not breaking any rules of F&B set by the Higher Authorities.

In Some countries companies like Diageo cannot directly advertise their product on TV or radio or Newspaper, if they do so then company have to see big Problems.

Environmental

In today’s world each company have to take care about the enivonmental factors. It is necessary or a moral duty of each company to try that they will not affect the nature with their factories or manufacturing plant.

Companies like Diageo take care of these things they packed their product in recyclable substance. In the brewing industry, water is an essential part of their production, so company should have water management system so that the water will not waste. Energy Management should also be there, to run a manufacturing plant continuously electricity is the basic need so companies should use solar and wind energy to run their manufacturing plant. Climate change is the biggest issue of today’s time, companies have to minimize their carbon emission.