For a company to be successful in crafting and implementing business strategies, a clear understanding of the organizational environment is required (Abell 1980). Influencing factors in the macro environment of the organization need to be analyzed and understood so that strategies being developed will fit well with the environmental conditions. (Thomson & Strickland 2003). Macro environmental effects can be evaluated with the use of PEST analysis covering, Political, Economic, Social and Technological Aspects of the Macro Environment (Zeithaml & Zeithaml 1984). Following PEST analysis considers the environmental conditions within which the C& C’ s cider brands have to perform. Political factors such as increased free trade, relaxed Foreign Direct Investment policies as well as the opening of new markets such as China will allow for greater expansion opportunities for C& C’ s international division.
However, with the current volatile status in the world political arena marked by increased levels of terrorism may impact on the level of social and sports-related events being held which affect the C& C’ s product consumption. Some countries may also resort to boycotting Irish products as was the recent case where Danish products were boycotted by many Islamic countries over the cartoon controversy.
Government stance on cider is also important as increased duties and excise taxes will erode profitability. Economic factors needing consideration involves the increasing level of per capita spending power across the world and how people move away from cheap product options to premium products. On the other hand, changing employment patterns such as contract employment, part-time and freelance arrangements where job security is no longer a standard offer in employment provides less financial stability. This may reduce the peoples’ propensity to spend on products such as premium alcohol (Armstrong & Kotler 2000).
However this increasing per capita income has favorable potential where developing countries are being considered. These countries may consider cider as a premium product compared to their home-brewed product.
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