Case Study of Femsa Cerveza
Introduction: As part of our marketing study we tackled three questions related to this product in order to truly understand the history and marketing occurances of this case study. We learned a great deal in anazlying this product and can go on to analyse other campanies and products in the same manner using the techniques we have learned here. Here follows the three questions.
1. External environmental analysis using the PESTLE analysis technique.
There are different factors in the macro-environment that will have effect on the decisions of the managers of any organisation. Demographic change, government, tax systems, new laws, trade barriers, exchange currency, living standards are all examples of macro changes. To analyse these factors managers can use different tools and techniques that will help with analysing the macro environment and PESTLE is one of this techniques. PESTLE analysis is used to identify and summarise environmental influence on an industry or organisation, it identifying the political, economic, social-culture, technological, legal and environmental factors that impact on an organization (the name PESTLE is a shortcut from first letters of the factors). This provides a way of auditing the influences that have impacted on an organization or strategy in the past and how they might do so in future [1].
1.1 Political Factors
a) Positive
• Proposal of changing in liquor licensing that allow pubs to be open longer;
• FEMSA Carveza is an exporter to few EU members country where law and legislation is very similar to UK because it must be consistent with EU law;
b) Negative
• Lack of legislation that will prohibit British breweries from monopolistic practice(‘ tied estates’) – price fixing, exchange of commercial information;
1.2 Economic Factors
a) Positive
• Production (including bottles, labels, caps, boxes etc.) in a country that have much cheaper operating and working force costs than UK;
• Cheap sea transport from Mexico to
1. External environmental analysis using the PESTLE analysis technique.
There are different factors in the macro-environment that will have effect on the decisions of the managers of any organisation. Demographic change, government, tax systems, new laws, trade barriers, exchange currency, living standards are all examples of macro changes. To analyse these factors managers can use different tools and techniques that will help with analysing the macro environment and PESTLE is one of this techniques. PESTLE analysis is used to identify and summarise environmental influence on an industry or organisation, it identifying the political, economic, social-culture, technological, legal and environmental factors that impact on an organization (the name PESTLE is a shortcut from first letters of the factors). This provides a way of auditing the influences that have impacted on an organization or strategy in the past and how they might do so in future [1].
1.1 Political Factors
a) Positive
• Proposal of changing in liquor licensing that allow pubs to be open longer;
• FEMSA Carveza is an exporter to few EU members country where law and legislation is very similar to UK because it must be consistent with EU law;
b) Negative
• Lack of legislation that will prohibit British breweries from monopolistic practice(‘ tied estates’) – price fixing, exchange of commercial information;
1.2 Economic Factors
a) Positive
• Production (including bottles, labels, caps, boxes etc.) in a country that have much cheaper operating and working force costs than UK;
• Cheap sea transport from Mexico to
Bibliography: [1] Strategy and technology management: An innovation-leader case study; Wiliams B., Figueredo J; Page(s): 806 – 811; Print ISBN: 978-1-61284-951-5; [2] 1991 Census data UK - http://www.ons.gov.uk; [3] Marketing: An Introduction for Irish Students, Donal Rogan, Printed 2000 by G&M