Corporate Strategy Notes
APPENDIX 1
EXHIBIT 1- Layers of the business environment
1. The macro - environment – (using the PESTEL model)
2. Industry (or sector) – (using 5 forces model)
3. Competitors ( using strategic groups, market segments and critical success factors)
EXHIBIT 2 - PESTEL ANALYSIS
Political
Hungary in 2004 joined EU
Strong government power in US to ban/regulate alcohol and distribution
Hungarian government did not offer any trade support to the nation’s wineries
Economic
Exchange rates
Duties and import costs (abolished within EU but exist for US)
Hungary’s import duty reduced to one-third due to EU
Cost of obtaining multiple wholesale licenses
Capital intensive industries
Lack of resources in Hungary
Hungarian government did not offer any trade support to the nation’s wineries
Baby boomers have the disposable income
Social
Change in eating habits and seek for alternative beverages
Consumer types
Baby boomers are increasing in numbers
Technological
Internet-based alcohol sales between states
Environmental
Cost of land/availability in old and new world
Favorable weather conditions in Hungary
Legal
Fragmented legal system in US on distribution of alcohol
US can be considered as 50 separate countries.
A state government has the right to ban alcohol, set up state – run distribution outlets
Some jurisdictions prohibit direct shipping of alcohol between states
Fragmented distribution system
Complicated and costly to obtain wholesale license
Many states required an independent third-party wholesaler by law
EXHIBIT 4 – SCENARIO ANALYSIS
Nich market with quality wine in the existing states
Nich market with quality wine in all states
EXHIBIT 5 – IDENTIFY KEY DRIVERS
Baby boomers ready and having the disposable income for quality wine
Nich market
US is a huge expanding market
EXHIBIT 6 - FIVE FORCES ANALYSIS
1- Threat of entry (complex legal system, barriers to entry due to government actions, MMI experience in the market so difficult for new players, existing big
EXHIBIT 1- Layers of the business environment
1. The macro - environment – (using the PESTEL model)
2. Industry (or sector) – (using 5 forces model)
3. Competitors ( using strategic groups, market segments and critical success factors)
EXHIBIT 2 - PESTEL ANALYSIS
Political
Hungary in 2004 joined EU
Strong government power in US to ban/regulate alcohol and distribution
Hungarian government did not offer any trade support to the nation’s wineries
Economic
Exchange rates
Duties and import costs (abolished within EU but exist for US)
Hungary’s import duty reduced to one-third due to EU
Cost of obtaining multiple wholesale licenses
Capital intensive industries
Lack of resources in Hungary
Hungarian government did not offer any trade support to the nation’s wineries
Baby boomers have the disposable income
Social
Change in eating habits and seek for alternative beverages
Consumer types
Baby boomers are increasing in numbers
Technological
Internet-based alcohol sales between states
Environmental
Cost of land/availability in old and new world
Favorable weather conditions in Hungary
Legal
Fragmented legal system in US on distribution of alcohol
US can be considered as 50 separate countries.
A state government has the right to ban alcohol, set up state – run distribution outlets
Some jurisdictions prohibit direct shipping of alcohol between states
Fragmented distribution system
Complicated and costly to obtain wholesale license
Many states required an independent third-party wholesaler by law
EXHIBIT 4 – SCENARIO ANALYSIS
Nich market with quality wine in the existing states
Nich market with quality wine in all states
EXHIBIT 5 – IDENTIFY KEY DRIVERS
Baby boomers ready and having the disposable income for quality wine
Nich market
US is a huge expanding market
EXHIBIT 6 - FIVE FORCES ANALYSIS
1- Threat of entry (complex legal system, barriers to entry due to government actions, MMI experience in the market so difficult for new players, existing big