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The Global Forces and the European Brewing Industry

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The Global Forces and the European Brewing Industry
THE GLOBAL FORCES AND THE EUROPEAN BREWING INDUSTRY
Using PESTEL analysis can help to highlight the biggest influences on the strategy of the organization, both currently and in the future. These influences can be both positive and negative. In addition, influences often cross the divide between the six headings; the important point is that they appear somewhere in the analysis. The key is to identify and concentrate upon those factors or trends likely to have the biggest impact upon the future of the organization.
PESTEL (Political; Economic; Social; Technological; Environmental; Legal) analysis provides a systematic technique for analyzing the business environment. It would enable us to:
Summarize the most important influences of the business environment;
Evaluate the potential impact of these influences on the organization.
Political
From the case study we notice the political intervention of the government that made strict prosecutions against drunken driving and the alcohol abuse through sensitization campaigns to create awareness of the effects of alcohol on our health. Other measures such as the prohibition of the sales of alcoholic drinks in public places this initiative taken by the government were one of the reasons that transformed the buying behaviour of European market that is the fall in the sales of beer in these countries. Though would be classified under the head of social analysis the government has caused in the buying behaviour. In the late nineties many restrictions were put on the brewing industries such as the use of cans in Denmark. Also in Germany local production laws like the “Reinheitsgebot” were introduced to regulate the brewing industry in this country. At that time Europe is moving towards becoming a single market with a stable political environment.
Economical
The effects that the economy has on the brewing industry are that there were different patterns of industry concentration across countries because of the different

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