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Diageo
Diageo

Beverages / Beverages


Risks
1. Increased Competition: As Diageo expands its operations into new markets, it faces greater competition from local alcohol brands. This competition may affect Diageo’s market share and profits.

2. Foreign Exchange Risk: With its presence in many countries around the world, Diageo is exposed to fluctuations in foreign exchange rates. This can lead to a significant impact on the company’s bottom-line.

3. Political Risk: Diageo is exposed to various political and regulatory environments in different countries. This places the company at risk of changes in government policies.

4. Currency Risk: Diageo’s revenues and costs are denominated in different currencies. This creates a risk of fluctuating exchange rates between them and, as such, a risk that earnings will suffer as a result.

5. Reputational Risk: In its global expansion, Diageo may be exposed to reputational risks. For instance, local communities may have negative views about the company’s activities or operations. This can have an adverse effect on Diageo’s brand image.

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