Risk and Opportunity of Diageo: PESTEL and SWOT Analysis

Abstract

This research talks about Diageo, the world-famous wine factory, and analyses the risks and opportunities through PESTEL Analysis and SWOT Analysis. The market capitalization, the timing and results of new projects, and the number of brands and revenue are collected from Yahoo finance and the company’s 2024 annual financial report. According to these analysis methods, this research believes that Diageo still possesses a strong power to keep going toward long-term prosperity as the world economy improves, even though there are some legal disputations. Diageo’s huge number of brands and complete production chain can help Diageo avoid risks to a large extent or stop the risk from expanding further. These capabilities result from Diageo’s long-term accumulation and strong management capabilities. This research provides an investment recommendation to investors interested in Diageo and provides a useful method to evaluate the business’s performance and the risks and opportunities it faces.