Every company experiences the influences of seven key environments. One of them is internal environment that defines the corporate culture. The other six environments are external. They are: economic, technological, cultural, natural, governmental and legal environments. Every environment consists of forces that influence every business and their relationship with government and society (Steiner & Steiner).
Diageo is a UK based company, but the United States of America is responsible for 40% of its revenue. The company has numerous offices, breweries and distilleries based in the USA, and they exist within influential frames of external environments of the country (Diageo, 2011 ).
Regulatory Environment
The United States of America has very strict laws and regulations that concern Alcoholic Beverage Industry. Alcoholic beverage consumption, as well as its distribution, is regulated by the government. Every state has different liquor consumption rules and regulations. However, the minimum drinking age of 21 years old is the same in every state. A place and time when alcoholic beverages may be consumed are regulated as well.
The retail sales of liquor products are usually provided by the specialized stores. Some of the states, like Ohio,