Global Forces and the European Brewing Industry

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GLOBAL FORCES AND THE EUROPEAN BREWING INDUSTRY -Assignment 1 Table of contents Global Forces and the European Brewing Industry----------- 1 Introduction-------------------------------------------------------------- 2 PASTEL------------------------------------------------------------------ 2 Porter’s Five Forces-------------------------------------------------- 4 Impact of Trends on the Companies----------------------------- 5 Strengths and weakness of Companies------------------------ 5 Name: Brighton Mwamba Town: Kitwe Introduction This case illustrates how global forces have impact on the European brewing industry and how concerned entities are trying to rise above the obstacles. Although the governments instituted restrictions and awareness campaigning, these companies are prevailing over by consolidation through acquisition, alliances and closure within the industry. These organisations are engaged on expanding their existence into emerging markets while some other companies are concentrating on innovation and branding.Furthermore, these companies are fighting to reduce the cost of overall manufacturing by cutting cost of packaging. Question 1(i) PESTEL The European brewing industry will be analysed using the general factors of Political, Economical, Social, Technological, Environmental, and Legal (PESTEL) analysis as follows respectively. Political Factors The governments are campaigning strongly against drunken driving, affecting the tendencies of drinking in restaurants, pubs and bars which is also known as ‘on-trade’. Governments are initiating social events stressing the harmful effects of alcohol on human health. Excessive alcohol consumption resulting into committing crimes attracts high penalty fees. Economical factors There are popular measures and strategies like new product brands, acquisitions, and

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