• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Global Forces and the European Brewing Industry

Extracts from this document...


Case Study Global Forces and the European Brewing Industry Questions; 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. 1) Introduction 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 Analysis 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. Political 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. ...read more.


The power of the buyer With a considerable number of products on the market the end user has the power to switch product without any incurred costs. However, with the increase in 'off-trade' sales and the large supermarket chains offering big discounts and special offers to get customers through the door, the consumer could stay loyal to their brand. The power of the supplier The main suppliers for the brewing industry are for packaging (accounting for around half of non-labour costs) and raw materials such as barley, and energy. In Europe the packaging industry is dominated by international companies such as Crown for cans and Owens-Illinois for glass bottles. In 2006 these costs increased dramatically. Heineken complained of an 11% rise in their packaging costs. To change the packaging supplier could be a high risk. Packaging is crucial to the supply chain. Any disruption could be costly. The extent of rivalry With 50% of the market share being controlled by the top 10 brewing companies, as showing in the table below, competition between these companies will be high. ...read more.


Strenghts; > Strong brand with distinct bottle tops > Establish 1615 - stood the test of time > Good innovation with premium lager and flavoured beer > Holds the rights for the sale and distribution of the US Milller brand > Centralised production; increased efficiency Weaknesses; > Medium sized company with sales of 313m Euros in 2005. Therefore less financial power than the bigger breweries > Single production plant - If problems occur this could impact of production. InBev InBev are in a strong financial position. Recent acquisitions to enter into new growing markets have proved successful. Strenghts; > Sales in 2006 13.3bn Euro's Largest in world > No 1 or No 2 position in 20 countries > 2nd largest in China through a series of acquisitions > Well known brands; Stella Weaknesses; > Along with the acquisition came plant. There is a need to centralise the production to gain tighter control and efficiencies > Lack of innovation Scottish and Newcastle (UK) Scottish and Newcastle was acquired by Heineken in November 2009. Strenghts > Market leader in UK, France and Russia > Fourth largest brewer in Europe in terms of volume > Emphasis on innovation > Invest in growing oversee markets early Weakness; > They are closing down inefficient breweries. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. The global business environment and its impact on Nestle.

    activities from them which will increase the amount of output while the input remains the same or else with a lesser input or else by giving certain incentives to the employees by the Nestle Corporations employees.


    The rational goal model emphasises control and an external focus and views planning, goal setting, productivity and efficiency as effective. Innocent employ experts in all areas from web designers to nutritionists to sales representatives which means everyone works in their specialized field to get the best possible outcomes for the company.

  1. Porters Five Forces - Easyjet, Ryanair

    Ticket sales are made entirely via the internet reducing costs of intermediaries and call centres. There are no onboard meals or services included in the fare. These factors have enabled the company to have one of the lowest costs per unit thus offering low fares to customers yet still maintaining a profit.

  2. The 21st Century Jet - The Boeing 777

    This testing is very useful in moving development work forward to allow early ETOPS certification. The 777 has the most extensive in-flight test program of any previous Boeing model. Nine airplanes will be used with engines from all three manufacturers.

  1. Environmental Analysis - Supermarket Industry

    Factors including monopolies legislation or environmental protection laws are important. The legislation stands that any of the supermarkets are not allowed to build on 'brown belt' land, as this is prohibited to protect the environment. Regarding this, thought also has to be given to where to new buildings are situated as noise, pollution, residential areas etc have to be considered.

  2. Apple's strategy and five forces analysis.

    The so-called 'iPod Generation' came into being as Apple's MP3 player became a very popular icon for the young generation. Apple's innovative strategies to differentiate gave it the competitive advantage in an environment in which trends and technology change rapidly, and the tendency that people value uniqueness is also co-worked with the environment.

  1. General Management - organisation, leadership and theories.

    who are well paid serve the rulers or owners instead of the community, about internal differentials and about the extent to which the style of management at the place of work and countrywide is authoritarian, not forgetting that in an emergency an authoritarian organization can work well but that precautions

  2. PESTEL and Five Forces Analysis of the Cuban Cigar Industry.

    By the way, the distribution channel is totally controlled by two companies: Atladis S.A. and Swedish Match. Only these exclusive dealers can distribute Havana cigars around the world. Thus the bargaining power of buyers can be considered to be high.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work