"Adnams Case Related to a Wake Up for Westminster" Strategic Management
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Address the following questions:
1. Identify and assess the key factors in the macro environment that have, or might, affect the UK beer industry. (30 Marks)
2. Present a Five Forces analysis of the competitive environment of the UK beer industry and discuss the changing nature and effect of these forces.
3. Against the background of a declining industry, the brewer and pub operator Adnams seem to be bucking the trends. Assess the strategic directions chosen by Adnams that have aided their progress.…show more content… In theory this is something that the government would not want.
‘The hope for the company is that emphasising heritage and taping into national pride will motivate UK consumers to drink more of the pedigree brand.” (Market watch global round up) This suggests that the beer market is also relying on tradition and history to get through these tough times. ‘the primary one is that consumer moral in England is poor, and national pride subsequently low.”(Market watch: Global round up). Social factors such as this are affecting the beer market.
The smoking ban has meant that most consumers are not allowed to do as they wish and so some op to just stay home and buy from the retailers. According to the case study ‘almost 60% percent of beer sales are sold in pubs, clubs and bars.’ (A wake up for Westminster) Considering drinking and smoking go hand in hand it can be said that one factor affects another. This in return also contributed to closures of pubs.
It can be said that all four factors; politics, economical, social and legal are all intertwined as one factor affects another. In relation to politics the rules and regulations set by the government ultimately affects the economic side of the beer industry. Due to the lack of growth and profit there are closures, which means socially there are loss of jobs. Furthermore, from a legal aspect