Global Forces and the European Brewing Industry
Global forces and the European Brewing industry –Case 1
Table of Contents
Introduction……………………………………………………………2
PESTEL……………………………………………………………….2
Porter’s Five Forces…………………………………………………..4
Strengths & weakness of Companies………………………………..5
Impact of Trends on the Companies………………………………..7
Bibliography……………………………………………………………8.
Introduction
This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite of restrictions and awareness campaigning runed by the government, these companies are trying to grow through acquisitions, alliances and closures within the industry. Companies are concentrating on expanding their existence into other markets. Some other companies are concentrating on innovation, branding. Moreover they are fighting on cost cutting such costs include packaging costs which will reduce the cost of overall manufacturing.
PESTEL
Political factors: * Government organising public events in order to make public aware about the effects of alcohol consumption on the health. * Government is imposing restrictions on consumption of beer and alcohol products. * If anyone is influenced by alcohol in doing crime they are fined with high penalty. (The European Brewing Industry, 1999)
Economic factors: * The government restrictions have lead to increase in sales of alcohol in supermarket. * Government campaigning and restriction on drinking resulted in decrease in the sale of alcohol product consumption in clubs and pubs. * Companies are trying to achieve economic of scale through cost reduction. * Brewing companies are engaged in various marketing strategy to grow their market through acquisition, mergers and introducing premium products. * Super markets are offering cut price offers. * Heineken is facing problem in packaging cost (The European Brewing Industry,
Table of Contents
Introduction……………………………………………………………2
PESTEL……………………………………………………………….2
Porter’s Five Forces…………………………………………………..4
Strengths & weakness of Companies………………………………..5
Impact of Trends on the Companies………………………………..7
Bibliography……………………………………………………………8.
Introduction
This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite of restrictions and awareness campaigning runed by the government, these companies are trying to grow through acquisitions, alliances and closures within the industry. Companies are concentrating on expanding their existence into other markets. Some other companies are concentrating on innovation, branding. Moreover they are fighting on cost cutting such costs include packaging costs which will reduce the cost of overall manufacturing.
PESTEL
Political factors: * Government organising public events in order to make public aware about the effects of alcohol consumption on the health. * Government is imposing restrictions on consumption of beer and alcohol products. * If anyone is influenced by alcohol in doing crime they are fined with high penalty. (The European Brewing Industry, 1999)
Economic factors: * The government restrictions have lead to increase in sales of alcohol in supermarket. * Government campaigning and restriction on drinking resulted in decrease in the sale of alcohol product consumption in clubs and pubs. * Companies are trying to achieve economic of scale through cost reduction. * Brewing companies are engaged in various marketing strategy to grow their market through acquisition, mergers and introducing premium products. * Super markets are offering cut price offers. * Heineken is facing problem in packaging cost (The European Brewing Industry,
Bibliography: Ageing Population and Lifestyle Changes Drive Demand for Orthopaedic Biomaterials in Europe. (n.d.). Retrieved March 9, 2010, from http://www.prnewswire.co.uk/cgi/news/release?id=174134 Demographics of Europe. (n.d.). Retrieved March 9, 2010, from Absolute Astronomy: http://www.absoluteastronomy.com/topics/Demographics_of_Europe Europa. (2010, February 17). Retrieved March 10, 2010, from European Union website: http://europa.eu/pol/env/index_en.htm EUROPA. (2010, february 17). Retrieved march 10, 2010, from European union website: http://europa.eu/pol/rights/index_en.htm EUROPA. (2010, february 17). Retrieved march 10, 2010, from European Union website: http://europa.eu/pol/health/index_en.htm EUROPA. (2010, february 17). Retrieved march 10, 2010, from European Union website: http://europa.eu/legislation_summaries/employment_and_social_policy/index_en.htm European Brewing Industry. (1999). Retrieved March 9, 2010, from www.The20European20Brewing20Industry,20Theses_26_Dissertations,20College%20Term20Papers.com Institute of Alcohol Studies. (2009). Alcohol in Europe A Public Health Perspective. Retrieved March 10, 2010, from Institute of Alcohol Studies: http://www.ias.org.uk/resources/publications/theglobe/globe200602/gl200602_p3.html#Anchor-Evaluating-3800 The European Brewing Industry. (1999). Retrieved from College Term Papers Web Site: http://www.collegetermpapers.com/TermPapers/Theses_&_Dissertations/The_European_Brewing_Industry.shtml