1. Introduction 1
2. Importance of environmental analysis 1
3. Procedure 1
4. Findings 2 1. PESTEL analysis for environmental scanning 2 2. Political factors 2 3. Economical factors 3 4. Socio-cultural factors 4 5. Technological factors 4 6. Environmental factors 5 7. Legal factors 5 8. Porter’s five forces model for environmental scanning 6 9. Threat of entry 6 10. Threat of substitutes 7 11. The power of buyers 7 12. The power of supplier 8 13. Competitive rivalry 8 14. Factors affecting competitive rivalry 8 15. Industry consolidation in light of the Greene King experience 9
5. Conclusion……………………………………………………………………..11
6. Recommendation …………………………………………………………… 11
7. References…………………………………………………………………….12
8. Appendices…………………………………………………………………….13
Report on environmental analysis & industry consolidations
Introduction
This report is about the importance of environmental analysis for the companies operating in the UK alcohol industry and what kind of tools is available for analysis. Also report will highlight the industry consolidation in the light of Greene King experience.
Importance of environmental analysis
This analysis is used to measure the internal (Strengths and weaknesses) and external (opportunities and threats) environment factors which affect companies in future and also help to make a strategy to compete environment influences. (J&S)
If companies do not analyse their internal and external environment then it would affect the company’s growth and others will have a chance to get competitive advantages.
“Boiled frog syndrome” is a good example for understanding the importance of environmental analysis. (Lecture notes 1, 28.09.2005)
Procedure
There are three models for analysing the environment: (J&S) • PESTEL analysis • Industry life cycle • Porter’s five forces frame work
But in this report only two models will be