The Macro Environment of the Western European Brewing Industry Was Analyse Using the Pestel Framework and Five Forces Analysis

773 WordsFeb 19, 20134 Pages
The macro environment of the Western European brewing industry was analyse using the PESTEL framework to understand and assess the impact of the various external factors namely political, economic, social, technological, environmental, and legal. Political At the beginning of the 21st century the European governments forbear dynamic participation in the beer industry, which was considered as an important part of government revenues, moreover all this government started big campaigns against alcoholism, binge drinking and drunk driving. The campaigns against drunk driving have proven its effectiveness by a very large decline in beer sales in Western Europe, which was considered as best-selling items. For instant, WHO focuses on a…show more content…
Companies have acquired experience, excellence and technological know-how in beer, spirit and wine production. Alliances, joint ventures and partnerships have increased the capacity of the industry as a whole. * Economies of scale in brewing and distribution Environmental * With severe weather changes becoming more frequent, natural disasters could cause shortages of material such as barley. Therefore the industry needs to be prepared in difficult times. * One of the major environmental concerns is global warming. Inefficient processes that produce more wastes such as air pollution or water pollution would face severe pressure from both governmental and non-governmental organizations. Legal * The financial information and other information must be transparent and accuracte. * Human resource legislation need to be precise and practical for example; working hours should not be longer than the government stated and protection in working place such as hazardous material need to be carefully use. To set up union for workers in order for them to give an opinions in industry and work place. Five Forces Analysis Rivalry Among Existing Competitors (High) Competition among existing firms is high that is why these firms are pushed to create acquisition, licensing and strategic alliances in their effort to control the market. There are high fixed costs in an industry and high exit barriers

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