Pestel Factor Affecting the Brewing Industry
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Brewing Industry Case Study
Module: Strategic Planning ProcessLecturer: Michael ShovelinDate: 04th September 2010Postassignment: Case exampleGlobal Forces and the European brewing industry-------------------------------------------------
This assignment is based on the case example Global forces and the European brewing industry andrelates 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 Europeanbrewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude?(i) PESTEL analysisOne tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysisenvironmental influences are categorized into political, economical, social, technological,environmental and legal aspects. It helps to identify how future trends might influence anorganization and furthermore, to identify the key drivers of change to create scenarios for thepossible future.Political factorsThere is an overall decline of consumption of Beer in Europe as many traditional key markets havebeen made increasingly aware of the social problems associated with alcohol consumption. Factorscould be the active campaign of European governments against drunken driving, binge-drinking andconsequently the long term health and fitness problems.Economic factorsIn the case study there is the talk of the overall decline of European beer consumption, while therewas 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 pubsor restaurants) to the off-trade (retail/supermarkets). Moreover, the success of Germansupermarkets like Aldi and Lidl with their own private label beers rather than the brewery-brandedbeers
Brewing Industry Case Study
Module: Strategic Planning ProcessLecturer: Michael ShovelinDate: 04th September 2010Postassignment: Case exampleGlobal Forces and the European brewing industry-------------------------------------------------
This assignment is based on the case example Global forces and the European brewing industry andrelates 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 Europeanbrewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude?(i) PESTEL analysisOne tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysisenvironmental influences are categorized into political, economical, social, technological,environmental and legal aspects. It helps to identify how future trends might influence anorganization and furthermore, to identify the key drivers of change to create scenarios for thepossible future.Political factorsThere is an overall decline of consumption of Beer in Europe as many traditional key markets havebeen made increasingly aware of the social problems associated with alcohol consumption. Factorscould be the active campaign of European governments against drunken driving, binge-drinking andconsequently the long term health and fitness problems.Economic factorsIn the case study there is the talk of the overall decline of European beer consumption, while therewas 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 pubsor restaurants) to the off-trade (retail/supermarkets). Moreover, the success of Germansupermarkets like Aldi and Lidl with their own private label beers rather than the brewery-brandedbeers