Brewing Industry Case Study
Module: Strategic Planning Process Lecturer: Michael Shovelin Date: 04th September 2010 Postassignment: Case example Global Forces and the European brewing industry
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This assignment is based on the case example ‘Global forces and the European brewing industry’ and relates 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 European brewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude? (i) PESTEL analysis One tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental and legal aspects. It helps to identify how future trends might influence an organization and furthermore, to identify the key drivers of change to create scenarios for the possible future. Political factors There is an overall decline of consumption of Beer in Europe as many traditional key markets have been made increasingly aware of the social problems associated with alcohol consumption. Factors could be the active campaign of European governments against drunken driving, binge-drinking and consequently the long term health and fitness problems. Economic factors In the case study there is the talk of the overall decline of European beer consumption, while there was 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 pubs or restaurants) to the off-trade (retail/supermarkets). Moreover, the success of German supermarkets like Aldi and Lidl with their own ‘private
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This assignment is based on the case example ‘Global forces and the European brewing industry’ and relates 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 European brewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude? (i) PESTEL analysis One tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental and legal aspects. It helps to identify how future trends might influence an organization and furthermore, to identify the key drivers of change to create scenarios for the possible future. Political factors There is an overall decline of consumption of Beer in Europe as many traditional key markets have been made increasingly aware of the social problems associated with alcohol consumption. Factors could be the active campaign of European governments against drunken driving, binge-drinking and consequently the long term health and fitness problems. Economic factors In the case study there is the talk of the overall decline of European beer consumption, while there was 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 pubs or restaurants) to the off-trade (retail/supermarkets). Moreover, the success of German supermarkets like Aldi and Lidl with their own ‘private
References: Johnson, Gerry, and Kevan Scholes and Richard Whittington. Exploring Corporate Strategy – Text & Cases. 8th ed. Harlow: Pearson Education / Prentice Hall Financial Times, 2008. (1) http://www.thewatertreatmentplant.com/water-treatment-brewery-industry.html (2) http://record-eagle.com/business/x75056566/InBev-inherits-Anheuser-Busch-weaknesses (3) http://www.guardian.co.uk/business/2009/oct/13/heineken-newcastle-brown-ale-jobs (4) http://www.mohrenbrauerei.at/index.php?mid=5&smid=&ssmid=