The UK Brewing Industry: PESTLE Analysis

The UK Brewing Industry PESTLE AnalysisThe macro- environment of the UK brewing industry are the major(ip) external and uncontrollable factors that influence its operating organizations decision making, as well as its performance and strategies. To identify and assess its key factors, using the PESTLE mannikin will provide a comprehensive list of influences and key drivers in six main(prenominal) categories, which are political, economic, social, technological, legal, and environmental. This method allows businesses to consider and explore how their external environment might change so that they are prepared if things should change.PESTLE analysis of the UK Brewing IndustryPoliticalChanges and reforms of Licensing Laws in line with Government policy peace of mind of opening hours and late night opening study minimum wage increase affecting salaries and wagesEU influence and ordinance regarding measures of drinksEU and National Government guidelines regarding healthLocal and Nation al Government concerns regarding negative aspects of binge drinkingBudget increases in duty on alcoholGovernment propose to increase taxes equating to around 8millionIncreased duty on beer to 9% and inflation by 2%EconomicalNational and international economic downswing means people generally have less disposable income for socialisingRise in staff wages due to National Insurance and borderline Wage increasesCut price offers for alcohol in supermarket promotionsIncreases in transport costs in line with Fuel pricingSteadily falling conflictPubs create 18 jobs per pint than the supermarkets who only create 3Rising costs of energy, food tax and employmentSocialCulturally pubs are the fondness of social life, place to meet friends and for locals to socialiseEasily accessible as pubs are generally situated close to Town Centres or on main routesLocalised venue known for gigs, live music, themed nights for younger consumersDemographically increased local student populationMedia concern with negative aspects of binge drinkingIncreased cognizance of health concernsIncreased advertising on mainstream media of consuming alcohol responsiblyWider choice and taste of alcoholic drinks in supermarkets for consumersTechnologicalDevelopments in delivery of insensate beers and chilled aleDevelopment of wide range of flavoured alcoholic drinksLocal interest in nightlife promoted via multi-media, websites, blogs and social networkingAdvertisements for alcohol awareness and responsible drinking on mainstream mediaIncreased advertizement for alcohol brands via multi mediaLegalSmoking BanStronger enforcement of underage drinking regulations on local and national levelChanges in Drink Driving LawsEU legislation on measures of drinks servedEnvironmentalRecyclingWaste, litter, refuse produced in local areaTransportation and delivery costs of goodsThe Macroeconomic EnvironmentKey DriversThe Changing genius of the Competitive EnvironmentPresent a Five Forces analysis of the compet itive environment of the UK beer industry and discuss the changing nature and effect of these forces (30 marks)The brewery industry is highly competitive and highly saturated business. There are a number of forces at work here all of which tail end provide an insight into how likable the brewery industry is, in terms of whether it is the type of industry to enter or leave if there is room to exert any type of influence and how the competitors at heart this industry affect its performance (Johnson,2009). To help provide an analysis of the brewery industry and develop a business strategy, using Michael E. Porters Five Forces Model will assign its competitive intensity or attractiveness of a market.Porters Five Forces Analysis for the UK Brewery Industry***NOTES FROM WORKSHOP The industry is unattractive and unprofitable, the forces reduce the profits the firm can makeits getting worseThe strategical Directions of AdnamsAgainst the background of a declining industry, the brewer and pub operator Adnams seem to be bucking the trends. Assess the strategic directions chosen by Adnams that have aided their progress. (40 marks)Adnams is a British brewery founded in 1890 in Southwold, Suffolk. In 2008 in spite of the economic downturn, Adnams began to make changes in how the brewery process operates to reduce its adjoin on the environment. In doing so Adnams decided to work more closely with local farmers and producers who supply their breweries and hotels in addition to this through a partnership with a local business Adnams installed an anaerobic digestion plant to turn brewery and food waste into biogas, which has been a huge success.CONCLUSIONTable of Appendices meeting LogsMeeting Title strategical Management Assignment interpret22ndFebruary 2011Time1200LocationKingston Hill Campus (Library Resource Centre)Meeting No.1AttendeesAlfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine RandolphTopicsFamiliarize ourselves with one other and exchange contact detailsEnsure everyone has a copy of the case studySkim over the case study and brainstorm possible routes for questions 1, 2 and 3Next run across watch 1stMarch 2011By the next meeting everyone should have read and understood the case study fully, and made bullet points for all(prenominal) question.Meeting TitleStrategic Management AssignmentDate1stMarch 2011Time1200LocationKingston Hill Campus (Library Resource Centre)Meeting No.2AttendeesAlfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine RandolphTopicsGather all the notes made for each questionDecide who will do which questionNext meeting date 8thMarch 2011By the next meeting everyone should have made a start on their assigned question so that everyone can read over it and offer suggestionsMeeting TitleStrategic Management AssignmentDate17thMarch 2011Time1400LocationKingston Hill Campus (Mid Level)Meeting No.3AttendeesAlfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, R osetta Azah-Thomas, Jermaine RandolphTopicsCombined the work that everyone has done so far individually for each questionWhatever is left to do everyone should do, and we will bring it together for the next meetingNext meeting date 22ndMarch 2011By the next meeting all the questions will be answered by everyone and put together collectively and everyone will read the appointee and take notes on which sections they feel are irrelevant so that it will be cut down to make relevant together so that everyone is happy with its contentMeeting TitleStrategic Management AssignmentDate22ndMarch 2011Time1100LocationKingston Hill Campus ()Meeting No.AttendeesAlfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine RandolphTopicsTo discuss why sections of the assignment are irrelevantTo take out sections that everyone agrees are irrelevantNext meeting dateMeeting TitleStrategic Management AssignmentDate24ndMarch 2011Time1300LocationKingston Hill Campus ()Meeting No.At tendeesAlfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine RandolphTopicsTo write up the introduction (preface) and conclusion as a group lead in the assignmentNext meeting date