Broad Environmental Forces Industry Influence (Include references) on Nonalcohol

Question

Broad Environmental Forces Industry Influence (Include references) on Nonalcoholic Beverages

1 Political – Strength of Force To what extent does the government influence the economy of the industry?

2 Economic – Strength of Force To what extent does the economy impact the industry performance?

3 Social – Strength of Force To what extent do social changes, cultural trends, and demographics influence the industry demand and future?

4 Technological – Strength of Force To what extent to technology innovations affect the operations of the industry?

5 Legal – Strength of Force To what extent do legal factors influence the industry?

6 Environmental – Strength of Force To what extent do environmental factors influence the industry (i.e.; tourism, farming, climate, sustainability)

7 Summarize the top 2-3 broad environmental forces – What does this analysis tell you about the attractiveness of the industry?

Explanation / Answer

Solution )

Please find below the analysis on Non - Alcoholic beverages. I will be categorising influence as low, medium and high for better understanding.

1) Political : Influence: Medium

https://www.economist.com/business/2009/03/18/squeezed-out? zid=319&ah=17af09b0281b01505c226b1e574f5cc1

2) Economic : Influence: High

3) Social : Influence: High

4) Technological : Influence : Medium

1. In 21st century, technology plays an important role in every industry.

2. Technology for this industry can be used in both evolving with better products, quicker time to market, improving ordering experience for the customer.

5)Legal : Influence : Medium

1. Legal factors can have both positive and negative influence on the industry. Though, whatever the impact is , it will be extreme.

2. For example, law of the land can discontinue non-alcoholic beverages due to some health risk. Law can also discontinue alcoholic beverages for same reason and boost demand for non-alcoholic beverages.

6) Environmental Factors : Influence : Medium

1. Environmental factors can have limited impact on the industry.

2. Dependence of local raw material availability, suitable climatic condition for longer shelf life of the product, possibility of recycling are some of the key influencers for the industry.

To summarise, the industry is largely influenced by economic and social forces which drives its existence in a country.

The industry is very attractive because alcoholic beverages have limited usage due to their health impacts. Eventually, either their usage is to be limited or they are to be abolished by the Federal Govt of different countries. Hence, this sector will remain relevant and thriving.

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