BACHELOR OF ARTS IN BUSINESS STUDIES
UNIVERSITY OF GREENWICH

NAME : STEPHANIE ROBERTS
COURSE NAME: MANAGING STRATEGY
COURSE CODE: BUSI1484
PORTFOLIO ASSIGNMENTS:

PORTFOLIO ASSIGNMENT 1;
GLOBAL FORCES AND THE WESTERN EUROPEAN BREWING INDUSTRY
DATE OF SUBMISSION: 09/02/2012

1. (i) PESTEL ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY

The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies (Johnson et al, 2008, p55). PESTEL stands for Political, Social, Technological, Environmental and Legal.

Political-
Governments in Europe were campaigning strongly against drunken driving. This affected the propensity to drink beer in pubs and restaurants.

Economic-
Some low consumption European markets have been showing good growth. Pubs have suffered as a result of large supermarket chains such as Tesco and Carrefour who often use cut price on beer to lure people into their shops. The result was that an average of about 50 pubs closed per week during the recessionary year 2009.

Social-
There was increasing awareness of the effects of alcohol on health particularly in the UK. This led to a growing hostility to excessive alcohol consumption in pubs. Beer consumption in the UK as well as in Germany began to fall as a result of this.
Wines were becoming increasingly popular as Europe was turning off beer.
There was an increasing demand for Exotic imported beer more especially in Belgium, Denmark, Finland and the Netherlands according to Table 2 of the case study.

(ii) FIVE FORCES ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY According to Johnson et al (2008), Porter’s five forces framework was developed as a way of assessing the attractiveness (profit potential) of different industries. They observed that the five forces constitute