Preview

Pestel Factor Affecting the Brewing Industry

Powerful Essays
Open Document
Open Document
1619 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pestel Factor Affecting the Brewing Industry
1
Brewing Industry Case Study
Module: Strategic Planning ProcessLecturer: Michael ShovelinDate: 04th September 2010Postassignment: Case exampleGlobal Forces and the European brewing industry-------------------------------------------------
This assignment is based on the case example Global forces and the European brewing industry andrelates to two questions raised in chapter 2 at the end of the case example (Johnson et al. 2008, p.91) of the book Exploring Corporate Strategy: Text and Cases by Johnson, Scholes and Whittington.1.) Using the data from the case (and any other sources available), carry out for the Europeanbrewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude?(i) PESTEL analysisOne tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysisenvironmental influences are categorized into political, economical, social, technological,environmental and legal aspects. It helps to identify how future trends might influence anorganization and furthermore, to identify the key drivers of change to create scenarios for thepossible future.Political factorsThere is an overall decline of consumption of Beer in Europe as many traditional key markets havebeen made increasingly aware of the social problems associated with alcohol consumption. Factorscould be the active campaign of European governments against drunken driving, binge-drinking andconsequently the long term health and fitness problems.Economic factorsIn the case study there is the talk of the overall decline of European beer consumption, while therewas an increase in emerging markets (e.g. China, Brazil) around the world. This could be because of the government campaigns which caused a shift in sales from the on-trade (beer consumed in pubsor restaurants) to the off-trade (retail/supermarkets). Moreover, the success of Germansupermarkets like Aldi and Lidl with their own private label beers rather than the brewery-brandedbeers

You May Also Find These Documents Helpful

  • Powerful Essays

    Beer Industry Oligopoly

    • 1981 Words
    • 8 Pages

    The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an oligopoly.…

    • 1981 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Bus 599 Paper

    • 1454 Words
    • 6 Pages

    The trend of beer over the last five years had a combined annual growth rate (CAGR) of 4.8% worldwide. (www.encyclopedia.com/doc/1G2-2843300064.html.). Within Central America and South America, the CAGR increased to 6.3%. Africa also showed growth by having CAGR that got up to 6.4%. A key note about the growth of beer was shown in Asia. (www.encyclopedia.com/doc/1G2-2843300064.html). The trends of beer for the last five years have being tilting toward consumers wanting expensive beers. Due to that, expensive beers or premium beers accumulated 17% of the beer sales globally. The premium beer market of North America as well as Western Europe sales…

    • 1454 Words
    • 6 Pages
    Good Essays
  • Good Essays

    3. What does this article tell us about the nature of 5 forces in the US beer industry? Have these forces become more benevolent or…

    • 572 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Jain, Subhash C. Global Competitiveness in the Beer Industry: A Case Study. University of Connecticut, Storrs, CT, 1994.…

    • 6250 Words
    • 25 Pages
    Powerful Essays
  • Best Essays

    disintegration of yer maw

    • 2103 Words
    • 9 Pages

    BrewDog is a company that has gone from strength to strength in its short time since establishment. The company has been experiencing rapid growth over the past several years. Through extracting the relevant information from a SWOT analysis on the company, I will look at BrewDog’s strengths and opportunities, leading to analysis of competition, barriers to entry and the threat of substitutes in proposed future markets. Through this I will show what growth methods are not suitable for the company, and conclude with my recommendation that simultaneous expansion of the UK and foreign markets are the most viable growth prospects for the company. I will provide analysis and discussion to show the validity of this.…

    • 2103 Words
    • 9 Pages
    Best Essays
  • Good Essays

    To discuss how changing technological environment presents international threats and opportunities for the German beer industry, the term of changing technological environment has to be explained. The literature distinguishes between a micro environment and a macro environment. Micro environment concludes factors, which are directly influenced by a company. These factors are organizational – Marketing-Mix, Structure, processes etc. Macro environment contains political decisions, cultural and social changes and technological changes (Lee and Carter, 2009).…

    • 2666 Words
    • 11 Pages
    Good Essays
  • Satisfactory Essays

    Coors Case Analysis

    • 869 Words
    • 4 Pages

    * Domination over resale channels, force them to carry its brands exclusively, prohibit to cut down prices, ensure them keep products in certain conditions and destroy any products after 60…

    • 869 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Craft Brewing Case Study

    • 3071 Words
    • 13 Pages

    Mass production, product uniformity, and mass marketing are characteristics of the brewing industry. The brewing industry can be analyzed using Porter 's five competitive forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, substitutes and rivalry among existing competitors. All five competitive forces jointly determine the intensity of industry competition and profitability. Furthermore, the five forces narrow in on why the brewing industry became more concentrated and key features defining industry success.…

    • 3071 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Foster's Oligopoly

    • 1563 Words
    • 7 Pages

    Methods of analysis included facts and figures collected from the newspaper article and other research done on the topic. Findings from the research, coupled with economic theory have given a analytic view of the beer industry. Results from the research show that the Australian beer industry is an oligopoly with possible significant changes to take place in the near future.…

    • 1563 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Grolsch Global Strategy

    • 1520 Words
    • 7 Pages

    Before assessing Grolsch’s global strategy and approach, it is important to understand the beer industry overall from a strategic perspective. Two helpful methods for doing this are Porter’s Five Forces and a PEST analysis. Analyzing Porter’s Five Forces for the beer industry can provide insights into the reasons for the underlying economics and general competitive situation (see exhibit 1). The five aspects include competitor rivalry, suppliers, buyers, substitutes, and new entrants / barriers to entry. A PEST analysis helps in understanding the…

    • 1520 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Pestel Analysis

    • 345 Words
    • 2 Pages

    * Brewing companies are engaged in various marketing strategy to grow their market through acquisition, mergers and introducing premium products.…

    • 345 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The first part of this assignment based around the case study of Carrefour in Russia is to analyse the macro environment in Russia at the time of the case. Opportunities and challenges associated with that environment will also be considered. The best way to understand the macro environment in Russia is to carry out a PEST analysis. PEST stands for the political, economic, social and technological environments. This type of analysis can be considered an external appraisal of the business. The aim of this framework is to supply a reasonable overview of the different macro-environmental factors that affect a business’s strategy.…

    • 3100 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    With this research we want to demonstrate why we could market Tecate beer in the country of Brazil. Tecate is a local beer distributed by the Mexican company Cuauhtémoc Moctezuma Brewery (Spanish: Cervecería Cuauhtémoc Moctezuma) which has operating brewing plants in Monterrey, Guadalajara, Toluca, Orizaba, an Chihuahua, producing several beer including Dos Equis, Sol, bohemia, Superior, Carta Blanca, Indio, and Tecate among others. I choose this brand because it is a very well-known brand in Mexico, besides Cuauhtémoc Moctezuma Brewery has already made business in Brazil with their beer Corona. The biggest productor of beer in the world, AB InBev, started importing Corona from Mexico to sell it in Brazil as a “super premium” product. The prices of these types of beer are revolving in between the three or five dollars, and because Brazil not only has a 15 to 20 percent of its total market in beer, but it is also the third biggest beer production of the world. And to complete the points in favor Brazil spend 5.5 million of dollars in imported beer this is because the community from Brazil uses this beverage as a common companion for their meals when going out in groups. The expectative of the essay is to prove that we could market Tecate in Brazil and that this is a better option rather than to market it in Russia, that would be more expensive and give the company Cuauhtémoc Moctezuma less profit than in Brazil.…

    • 503 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Every successful company has its strength and weaknesses. After reading the case “Heineken N. V.: Global Branding and Advertising” it is clear that the company has more strengths than weaknesses. Heineken got its reputation by producing a light beer that has a great quality. In 1886, special yeast was developed that till today is used in Heineken’s beer production. The company is very proud that till today it uses its own designed recipes that for years has been improved and modified to give an unforgettable experience for customers for centuries. Heineken’s beers are package in very eye catching package that appeals to the customer in many different stores. Across the markets all over the world Heineken’s beer is acknowledged as a unique beer with special taste, that everybody wants to enjoy. The company is the second biggest beer manufacture across the globe. The first position is reserved for Anheuser-Bush that produces ten billion liters yearly. Just in 1993 sales of Heineken brand reached 1.52 billion liters per year growing up to 5.6 billion liters per year in 2010. Heineken has an impressive market share in U.S and Europe with the 38 percent presence. Looking at the data from 1992, Heineken’s growth rate was 23 percent. Asia and…

    • 3108 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    |What do you see as the key success factors for firms in the global beer industry? |…

    • 1911 Words
    • 8 Pages
    Better Essays