PESTEL ANALYSIS

PESTEL analysis is a marketing tool used to measure the effect of such external factors on the

business.  The term PESTEL Analysis is an acronym for Political, Economic, Social, Technological,

Environmental  and Legal.  A good PESTEL  means a business can take advantage of the

trends and changes  in the market place.

The business can then adapt and change its organisation to suit the needs of the market. It can be an

essential planning tool for predicting what the market requires at a specific time and what will be

commercially successful.

By utilising a PESTEL Analysis,  the business will be equipped to make advantageous, financial and

tactical decisions internally.

PESTEL FACTORS THAT ARE CURRENTLY AFFECTING THE BREWERY INDUSTRY

P	National minimum wage increase affecting salaries and wages. Relaxation of opening hours and late night opening  EU and National Government guidelines regarding health.  Single European Market. Being part of EU mean that many industries (included the brewers industry) get help with fighting away international competitors entering the marketplace Local and National Government concerns regarding negative aspects of “binge drinking”.
E	Rise in staff wages due to National Insurance and Minimum Wage increases VAT  increase on January 2011.  Recession (credit crunch). The current global economic crisis is expected to have an  affect on overall hospitality industry.  Health conscious market .With recent problem that people been having with binge drinking.
S	Media concern with negative aspects of ‘binge drinking’  Increased awareness of health concerns  Culturally pub centre of social life, place to meet friends and for locals to socialise Shortage skills , improving customer service.
T	WI-FI Internet. Attracting people to use laptops in the Pub. Developments in delivery of cold beers and chilled ale. Advertisements for alcohol awareness and responsible drinking on media. Chip and pin. It was introduced recently to avoid card crime, small pubs owner are not prepared to the new technology
E	Recycling. Cost of the bags. Transportation and delivery costs of goods
L	Smoking Ban. Smokers feel different and isolated. Changes in Drink Driving Laws. Limits for driving under the influence of alcohol. EU legislation on measures of drinks served .Forbidding  to serve alcohol underage.

PESTEL FACTORS THAT ARE LIKELY TO AFFECT THE BREWERY INDUSTRY

P	Changes and reforms of Licensing Laws in line with Government policy Beer tax reduced or freeze.  Avoiding pub closure.
E	Ageing population. Retired generation is coming. Olympic  and Paralympic  games (London 2012). Flood of people. Strength of the Economy after the recession
S	Alcohol the “Legal Drug”. What seems to get bypassed is the fact that Alcohol is still a Drug, but a Drug that is socially acceptable to consume. Disability discrimination, requiring adjustments  to make them accessible to disable users (PUBS/BAR) Customer service improvement. Training the staff.   Showcase career opportunities. Operating  training and qualification. Increase in pub management. Inexperienced  owner and managers lead to the decline of the industry.
T	Chip and pin. Adaptation to the new technology avoiding card crime. Take advantage of Technology and social networking sites
E	Plastic pint glassed launch. Attempt to cut the yearly glass and bottle attacks. (review of the year 2009). Global warming. Sale of cold drinks increase the profit.
L	Beer tax freeze. Beer tax continued to rise and a record of pubs closed. .  The Chancellor increased beer tax by 18 per cent in 2008 alone, which contributed to the closure of 2,200 pubs  and the loss of 20,000 industry jobs. (bighospitality 2009). EU legislation on measures of drinks served.