Global Forces and the European Brewing Industry
1. Using the data from the case study (and any other sources available), carry out for the European brewing industry;
i. PESTEL analysis
ii. A five forces analysis
What do you conclude?
2. For the four breweries outlined above explain;
a. How these trends will impact differently on these different companies
b. The relative strengths and weaknesses of each company.
Refering to the case study on page 91, (Exploring Corporate Stragey, Johnson, Scholes and Whittington) an analysis has been carried out using PESTEL analysis and Porter's five forces.
PESTEL is a method of analysing the macro-environment of an organisation. It stands for political, economic, social, technological, environmental and legal. Each of these areas is explored and the data gathered is used to identify the key drivers of change.
Recent campaign by the government to reduce drink driving and binge drinking have resulted in a decline in beer consumption. Also, the introduction of the 'No Smoking in public buildings' law would have an impact on people drinking in pubs.
Whilst sales volume have fallen, sale value has increased. This is due to premium products such as fruit beers.
Large supermarkets are offering cut price deals to entice customers into their shops.
There has been a high rise in packaging costs.
The first decade of the 21st century saw a fall in beer consumption in the UK and Germany.
Wine was becoming more popular.
Shift from 'on-trade' to 'off trade' due to more people drinking at home, possibly due to the 'No Smoking' law.
There is an increased awareness of health and fitness.
Grolsh increased their range with new flavoured beers.
Grolsh switched to single site production.
Heineken use local companies to introduce their product to new markets, thus sustaining local economy.