Global Forces and the Western European Brewing Industry
Introduction
The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL.
Analysis
Political factors
Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market.
Economic factors
As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property (e.g. at home). This has resulted in the increase of supermarket sales, along with the added incentive of discounted offers made by the competing chains (e.g. Tesco and Carrefour). These factors deal with money and economic activity within the market, making this a key factor.
Socio-Cultural factors
As a result of government intervention, public premises are less frequented, while supermarkets are picking up sales. The social tolerance for anti-social behavior has risen; ‘binge
The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL.
Analysis
Political factors
Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market.
Economic factors
As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property (e.g. at home). This has resulted in the increase of supermarket sales, along with the added incentive of discounted offers made by the competing chains (e.g. Tesco and Carrefour). These factors deal with money and economic activity within the market, making this a key factor.
Socio-Cultural factors
As a result of government intervention, public premises are less frequented, while supermarkets are picking up sales. The social tolerance for anti-social behavior has risen; ‘binge