Project 2 overview and implementation

Diageo -- Expanding International Operations in Ghana

Assess the MNC's marketing mix in the country, its promotional practices, pricing, branding strategies -- standardized or differentiated marketing program? What are the characteristics of the MNC's customers in that country?

Diageo is experiencing a vast amount of growth relative to its activities on the African Continent in many different markets on the continent. In Ghana in particular, the brand has stated its mission to be the most vibrant and iconic businesses in Ghana as well as becoming the market leader in beer and adult premium non-alcoholic drinks (Guiness Ghana Breweries Limited, 2016). However, the current economic situation in Ghana poses some significant challenges that could make sales challenging even with the best marketing platform. For example, even though the market in general is still experiencing growth, the growth rate is slowing and is predicted to be more volatile.

Furthermore, there are also a number of competitive pressures that arise from domestic competition that can compete at various price points. For example, SABMiller is MNC brewer that developed operations on the continent makes competitively priced beers from locally sourced cassava (a local root), yet in Africa they have cited that the biggest source of competition is inexpensive home brews (Broadman, 2016). In such an environment Diageo must leverage the largest product mix as possible that is differentiated on many points including price as well as customer-centric designs. Kerrin Lumsden, Diageo design leader in global brands, stated that part of their focus would be on narrowing the target and localization and said that,

"I think we've step changed and design is a lovely hybrid of understanding local cultures and local influences and the expertise we have as global branding design people, so the mixture of those two elements is really exciting. It gives it a unique language and we are now finding for some of our work in Africa we've got other markets and regions looking enviously at us and seeing what they can learn from us in our region so that's the exciting part and we've hopefully changed people's perception of what design should be for African brands (Mortimer, 2016)."

Despite Diageo having a wide product mix that is performing well, competitive pressures coming from sources such as cheap domestic lines continue to force the company to find innovative ways to connect with their consumers on a more intimate level and continue to refine their brand messages.

Analyze the organizational culture, the composition of the top management team, its international mentality (ethnocentric vs. geocentric) and staffing approach to the extent that public data allow you to do so.

The organization in Ghana by Diageo and the brands it controls is a mix of ethnocentric and geocentric approaches namely due to the fragmentation in the overall brand holdings, subsidiary holdings, and the complexity found in the organizational cultures that try to bridge these divides. For example, Diageo has majority-owned subsidiaries in Ghana as well as distributes a marketing mix of products that are imported from different regions (Diageo Africa, N.d.). However, the company has been able to take a geocentric approach on many key issues related to the industry and the society such as by working closely with governments and regulators on this significant public health issue and specific local issues, such as drink driving in South Africa or bringing in a minimum legal drinking age in Ghana (Diageo Africa, N.d.). Being able to take a stand on such issues suggests that management is able to overcome cultural obstacles that may be present to institute policies that have proven effective in other regions of the world. A management culture with a more ethnocentric approach to any particular internal or external decision-making process would likely be immersed in the culture to such a point to which they were not able to view the situation from outside their cultural biases.

How does the MNC's code of conduct or ethics address risks such as bribery and corruption? Does the MNC code specifically for that one country or is the code the same for all the countries in which it operates? Does the MNC's CSR program address local community, stakeholders' concerns, supplier relationships?

GGBL, Ghana's leading beverage business and a Diageo company has recently the announced the appointment of Helen Amerley Opoku-Agyemang as Controls, Compliance & Ethics (CC&E) Director at the company (Myjoyonline, 2016); during the initiation the Managing Director, Francis Agbonlahor, said "Guinness Ghana is committed to conducting business in an ethical manner and this appointment ensures the Controls, Compliance and Ethics agenda remains at the forefront of the way we do business." Although it is difficult to find the company's published statement on ethics and specific information on their CSR policies, the Ghana media is flooded with various stories about individual acts of social responsibility that would illustrate its dedication to CSR in an indirect manner. For example, given that the company is in the alcohol industry and there are not many driving standards in place in the country, GGBL has taken the initiative to host various educational safety programs to attempt to make the roads safer for everyone (Diageo, N.d.).