ey, and soccer teams. Anheuser-Busch has been very effective in maintaining a competitive advantage over its fellow rivals. EconomicThe primary economic issue affecting this companys environment is taxation. The company is significantly impacted by federal, state and local taxes, including beer excise taxes. Beer excise taxes are a sin tax, which raise revenue for the government. The national median is 18 cents per gallon of beer (St Louis Post, 98). An increase in taxes effects costs to the company, hence, costs to the wholesalers and consumers.According to the Annual Report for 1999, taxes applicable to 1999 operations (not including the many indirect taxes included in materials and services purchased) totaled $3.0 billion an increase of $114 million, or 3.9%, vs. 1998 total taxes of $ billion. Taxes in 1998 increased 8.1%. The increases in taxes in 1999 and 1998 are primarily due to higher excise taxes on increased beer volume. The economic constraints beer excise taxes impose considerably affect the companys overall performance. Social The social environment plays a key role in how Anheuser-Busch effectively markets their product to its consumers. For apparent reasons, such as, alcohol abuse, underage drinking, and drunk driving, not everyone is in favor of promoting alcoholic beverages. Many individuals and organizations lobby against the brewing industry and have a strong voice in the political arena. MADD, (Mothers Against Drunk Driving) is well known for its prominent position in the fight to end alcohol abuse. There has been much controversy on how Anheuser-Busch chooses to advertise its beer products. Over the years, some of their most successful advertising campaigns have been targeted for promoting underage drinking. Listed below are article summaries related to this controversial issue. Controversy: Frothing Anti-drink Forces Set Out to Nip Spuds in the Bud (People, 10/26/87) MADD member, spots stu...
