preview

External Analysis Samuel Adams Essay examples

Best Essays

External Environment Analysis Previously, you read about the industry analysis of the beer, wine and liquor industry and the five forces that affect a firm’s ability to serve consumers and turn a profit. Next, successful companies must recognize and respond to the major forces affecting our macro environment, for example; stock market decline, increase in unemployment and global warming. Companies must now consider several external environmental forces while running their business, in particular, demographics, economics, social, natural, technological and political.
Demographics
Demographics can consist of population size, density, location, age, sex, race and occupation. In this analysis, we will focus on examining population …show more content…

The perception seems to be that Americans are being more frugal because of the economy and saving more as a precaution. Competition has made the price of beer to a consumer rather negligible; Anheuser-Busch and MillerCoors have the ability to raise the price of beer because of their large followings. Another factor that could affect the price of beer is global warming, which you will read about later. Essential to our economy’s growth is the growth of small businesses such as craft breweries. The upcoming national election is approaching and the company Paychex has identified five important issues facing small businesses today, taxes, regulatory burden, employment regulations, immigration and retirement security (MarketWatch). Succession is important for small businesses and breweries as they look to expand or distribute to even more states. The Boston Beer company has a Brewing the American Dream program that helps provide loans, coaching and mentoring to small business owners in need of help in sustaining their business.
Sociocultural Environment Our sociocultural environment is the next external environmental force that looks at trends, values, preferences, behaviors and beliefs. Today consumers have the ability for mass customization, choosing among a menu of attributes to find the best price, delivery options and features for a product or service. Specifically for the beer industry, this could be whether to purchase cans or bottles or a variety

Get Access