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Guinness International - Essay Example

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Guinness International

Alcohol is a dependence-producing drug that causes detrimental societal and physical effects. According to the World Health Organisation (WHO), it leads to diseases, early mortality, accidents, and violent crimes (Camerra-Rowe, 11-12, 17).
No doubt, the technologies in the beer industry are the brewing facilities and the bottling and packaging technology. However, technology is not the critical success factor for brewing fine beer, more important are the brewer's marketing image and the recipe (Alan Moen).
Beer brewing contributes to global warming by emitting carbon dioxide. The use and disposal of bottles and packaging also contribute to environmental pollution (Brewers Association of Japan). Hence, beer brewing is a cause of concern for much environmentalists (Camerra-Rowe, 8, 24).
The beer industry operates within a tight legal environment. Numerous legislation exist in various nations to curb the advertising and excessive consumption of alcohol (Camerra-Rowe, 5, 14-15). Examples include control on drunk driving, operation hours of pubs, advertising, distribution, and even import controls, such as in Sweden (Camerra-Rowe, 13-15; Diageo, 9).
Strong marketing and advertising (Asia Pacific Breweries Limited, 2). ...
SWOT ANALYSIS
Having analysed the external environment, let us perform an internal analysis of the strengths, weaknesses, opportunities, and threats specific to the company.
Strengths
Sales volume increases in Asia in recent years (Asia Pacific Breweries Limited, 2).
Strong marketing and advertising (Asia Pacific Breweries Limited, 2). Its main forms of advertising are magazine, newspaper, point of sale, poster and billboard advertising, and radio, cinema, and television advertising where appropriate. It also uses consumer promotional programmes in the on trade, such as bars and restaurants (Diageo, 8).
Strong in human resources. Guinness International Learning Centre was set up for the purpose of training and development (Diageo, 8; Guinness Storehouse). Besides, the building of a pool of talented human resources is its core strategic imperative (Diageo, 8). Hence, it provides a competitive compensation package (Diageo, 8).
Established and strong in the Africa market (Diageo, 7).
Its parent company, Diageo is "the world's leading premium drinks business with a collection of international brand" (Diageo, 1).
Weaknesses
Not the leader in market share in Asia (Asia Pacific Breweries Limited, 15).
No emphasis on research and development (Diageo, 9)
Opportunities
Alcohol consumption in eastern Europe, Asia, Indochina (Vietnam and Cambodia), and America is rising (Asia Pacific Breweries Limited, 1; Camerra-Rowe, 8).
Europe, with the highest per capita alcohol consumption in the world (Camerra-Rowe, 12), is a mature market.
The market is fragmented due to differences in taste around the world, as well as national barriers to trade that stipulate the allowable ingredients, alcoholic content level, and size of containers of beer (Camerra-Rowe, 5). For example, ...Show more

Summary

In order to perform the PESTEL analysis, SWOT analysis, and Michael Porter's (137-45) five forces analysis of Guinness International (Guinness), it is important to first identify and define the industry in which it is operating. Guinness is in the beer brewing industry founded in 1759, with breweries (by way of license arrangements) in almost 50 countries and exports to around 150 countries (Diageo, 4; Guinness & Co.).
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