Lion Nathan Pestel Analysis

Topics: Strategic management, Competition, Drinking culture Pages: 6 (1760 words) Published: April 25, 2013
Table of contents

* Title Page

* Introduction

* External Environmental analysis

* Macro- External Environmental

* Industry Attractiveness

* Competitor Analysis

* Conclusion

Lion Nathan Newzealand breweries are formed by amalgamation of some Australia and Newzealand food and beverages companies. In 1795 James Squire, convicted highway robber and publican, started his business in Australia producing the first breweries and his legacy pass through Lion Nathan’s Malt Shovel Brewery. In 2009 Kirin Holding Company Limited holds 100 percentage ownership of Lion Nathan. Lion Nathan merged with National Foods in late 2007 to form Lion Nathan National Food. Lion Nathan is one of the most recognizable brand in Newzealand and Australia in the field of breweries. Lion Nathan National Food was rebranding to lion which increase the position in the market. Lion employee 7500 people from Newzealand and Australia. The brand name Lion has spread business to different sectors such as beer, spirits, wine, milk, fresh diary foods, juice, cheese and soy beverages. They make major contribution to Newzealand and Australia economy. Lion Nathan head office is situated at Sydney Australia. According to the sustainability report of Lion 2011 they have sales revenue $2,240m. Lion have operations in Australia, Newzealand and United States of America. Lion Company competes with DB breweries, independent breweries ltd and Hawkes Bay Independent breweries etc. "The effectiveness of strategic planning is directly related to the capacity for environmental scanning. Accurate analysis provides the best framework for maximizing opportunities and allocating resources for the anticipated future" (Jain, 1984). For the success of any organisation it must be taken to the environment in which the company performs its activities, by doing this it will point out the opportunities for the company and the threads the company face in different environment. PESTEL Analysis

In Newzealand alcohol is the commonly used drug from minor to major. So every breweries company tries to exploit the market in Newzealand by introducing different kinds of products since the political environmental plays a very important role in this. Every breweries company contributes to the economy to a large extent. New Zealand has a drinking culture and it's harming us very much so the government is currently addressing the issue by introduce new legislation and educating the public about alcohol knowledge. The most recent campaign the government is trying to put across is it's not the drinking it's how we're drinking ads. Being a social responsible organisation Lion Nathan are aware of the current situation facing New Zealand, that is why the company is fully committed on encourage responsible drinking and minimize the exploitation of alcohol through financial support agency like Alcohol Advisory Council. Economic

Breweries Company mainly produces the products like beer, spirits and wine most of the economy the prices for this commodity are same but due to competition they may change. If some products are not according to the standard they will recalls the product from the market in order to maintain the brand name or good will. Most of the breweries prices are same in the market and it will not change according to the changes in the economy. Lion largest breweries in Austria and Newzealand contribute more to the growth of the economy. Demand plays an important role in these sectors, if the demand is more the price will be low and the turnover will be high for the company. Social

Breweries such as beer, spirits and wine are injuries to our health, so every breweries company will be educating and informing the consumers about the harmful effects of the product. In Newzealand children under eighteen cannot consume such products also if we serve it against the social policy. The company must conform the product safety...
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