Global Forces and the Western European brewing industry.
1. PESTEL analysis for Western European brewing industry. Political factors:
* Government is restricting consumption of beer and alcohol products by imposing special laws. * Government initiating social events emphasizing the harmful effects of beer on the human health. * Higher penalty for being influenced by alcohol when doing crimes. Economic factors:
* Many European countries are controlling the amount of beer sold in bars, clubs and bars. * Governmental acts and restrictions increased the amount of beer sold through supermarket chains. * Acquisitions, mergers and products with new brands – these are popular measures and strategies in the brewing market these days. * Packaging is responsible for a considerable amount of costs included in the total costs of production. * Super markets are offering cut price offers.
Socio culture factors:
* Binge drinkers are met with aggression and censure, blame for antisocial behavior. * Consumers pay more attention to their health and harm that drinking beer can bring thanks to governmental effective policies to prevent high beer consumptions. * Drinking in the pubs and bars has been reduced and wine drinking is also increased in Western Europe. Technological factors:
* To achieve efficiency in production and cost reduction, companies utilize the latest technologies in order to achieve supreme quality with fewer costs. * In order to increase the cost effectiveness of the production, centralization is introduced to the organization of the production process. * Media adverts are used to commercialize established brands and promote new brands. Environmental factor:
* Germany and United Kingdom markets are in a decreasing phase whereas the annual sales are growing, especially Chinese market. * German retailer’s sales are increasing from local private brands rather than...
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