& Structure of Lesson Business Environment • • • • What does the business environment comprise? Use of PEST analysis Influences and drivers for change Glocalization Title of Slides Learning Outcomes At the end of this lesson‚ you should: Understand the nature of the business environment which includes ; • What does the business environment comprise? • Use of PEST analysis • Influences and drivers of change • Glocalization Title of Slides OPENING QUESTION WHERE
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APA citations to support your statements‚ explain what a PEST table is and why it is important to an organization (1-2 paragraphs). Pest Analysis is a frame work that strategy consultants uses to scan the mirco environment in which the firm operates. (Value Based 2013) PEST is Political‚ Ecomonic‚ Social factor and Techonolgies factors. Companies will use this in workshops and it will make the managmenets brainstorm techniques using PEST for strategic plannings‚ marketing planning or development
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South Delaware Coors‚ Inc Abstract The purpose of this case is to analyze Larry Brownlow’s decision to invest and operate a Coors Distributor in south Delaware. Coors Beer is located in Golden‚ Colorado and has many distributors that are monitored closely throughout the country. Coors is known for its dedication to quality by suppliers‚ wholesalers‚ and its customers. Not only does Coors monitor wholesalers and distributors‚ the company also requires that the wholesaler and distributor us recycling
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COORS CASE STUDY Q&As I. Evaluations of Coors’s competency in different stages of development Super Regional Brewer to National Brewer: * Bounded conservative family company with all board members plus 5 directors insiders. Later followed by more open minded management such as issuing stocks for outside financing‚ changing policy towards minority‚ * Traditional strengths in production; 70 days aging of its beers compared to other brewers. Also enjoyed good profit margins during
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analysis strengths: Coors was striving for quality and self-reliance They had 2 unique aspects of brewing process Used an aactor stating why Coors was a better beer First mover‚ pionered the first all aluminum can Weakness: At the beginning Coors sold to only one state If beer was still on shelves after 60 days it had to be thrown away Threats: Operating practices led to many strikes and law suits by federal agencies Other companies provided to a lot more states than Coors operation Opportunities:
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analysis of the South Delaware Coors Wholesale Distributorship opportunity‚ we recommend proceeding with the application process for the following reasons: 1. The expansion of Coors Inc. into southern Delaware fills a market void that is normally supplied by the fourth largest brewery in the United States. 2. The break-even analysis which indicates a considerable positive difference between the figures required to reach the break-even point for the South Delaware Coors Wholesale Distributorship and
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South Delaware Coors – Case Study 1 Question 1: What research should be conducted by Manson and Associates to allow Larry Brownlow to estimate the feasibility of a Coors beer distributorship in Delaware and why? Question 2: Would you recommend a go/ no go decision by Brownlow regarding his application and why/why not? A. Strategic issues and problems Larry Brownlow is considering whether or not to apply for the distributorship of Coors in South Delaware. Coors started as a small brewery
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The purpose of this analysis is to evaluate the potential profitability and market share of the Coors brand upon its implementation into the state of Delaware. By using the data collected by Manson and Associates‚ our team was able to identify an optimal selling price‚ total fixed costs‚ estimated variable costs‚ the breakeven point in units and dollars‚ breakeven market share‚ as well as an overall profitability analysis for 6-pack sales as well as keg sales. Manson & Associates Research With
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Adolph Coors Strategy for success in the mid 1970’s As per our understanding the strategy to Coors success can be attributed to the following Managing Production Cost Various Cost Control Strategies were • Single product Focus – only one kind of beer • High capacity utilization (The idea is that doubling the brewery scale will cut the unit capital cost by 25%) • Produced own malt. Set up rice-processing plant to avoid price fluctuations of “brewing” rice. • High Vertical Integration
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PEST ANALYSIS Political- Hong Kong is politically stable‚ there would rarely be any political factors that will interrupt and slow down the company’s growth. Hong Kong doesn’t have goods and services tax so this allows McDonalds to have lower expenses and they can maximize their profit. The international operations of Mcdonald’s are highly influenced by the individual state policies enforced by each government. Economic- The economic collapse has caused Hong Kong to enter the recession stage in
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