Managing Challenges in the Alcohol and Tabacco Industry

2873 Words12 Pages
Making reference to two enterprises within an industry or two industries, identify, compare and explain the major challenges these organisations have faced (such as environmental, financial, market, workforce, technological, regulatory and political) in the past decade and how these influences are likely to change in the future. Evaluate management theories in terms of explaining these influences and responses to them in the enterprise/industries you have examined. The tobacco and alcohol industry in the context of the Australian landscape has faced significant challenges over the last decade. The main challenges encountered by these industries have been of a regulatory nature, in the sphere of government and advertising regulations, as well dealing with the social and financial burdens of operations. The organisations operating in the respective industries look to remain vigilant and use innovative management strategies to be dynamic at times of adversity. Both the tobacco and alcohol industries have carved dexterous positions of self-regulation and will need to continue to do so due to the inevitability of future challenges. This essay looks to compare the two industries, taking particular note of similarities and differences; with a focus on addressing how organisations manage themselves in their industries. The tobacco industry operates in one of the most dynamic, controversial and heavily regulated markets in the world with the Australian government facing increasing pressure to continually regulate the tobacco giants. The federal government has befitted a firm stance to reduce the rate of smoking, especially among young people, and this clearly has implications for the tobacco industry in terms of management theories. Regulation has been increased with the launch of the National Tobacco Strategy which is a joint Commonwealth and State effort that
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