The European Brewing Industry Analysis of the Corporate Environment Student Name: Michael Lynch Diploma in Personnel Management, 1999. Subject: The Corporate Environment PEST Analysis - The European Brewing Industry - Poland, Hungary and the Czech Republic will join within five years- these countries have young populations with a desire for all things Western. - ING Barings predicts growth in these economies to average 8% p.a. over the decade after which they join the EU. - Europe is moving towards becoming a single market with a stable political environment. WTO, GATT-The current pressure on Europe from America and Australia to reduce agriculture subsidies could result in a change in the industrys raw material supply base. Taxes- VAT & Duty rates vary across Europe- VAT ranges from 15% in Luxembourg to 22% in Finland , while UK duty levels are seven times higher than those in France .Economic Environment GDP- Per Capita GDP in Europe has risen from $11,500 in 1989 to $16,800 in 1999 . GDP growth for 2000 is estimated to be 2.8% . EMU- Many stocks are now traded in Euros- investors can compare stocks across Europe easily and see which companies are lagging against their competitors.- EMU has lowered interest rates- Spanish companies can now access the same interest rates as German companies, compared to four years ago when they paid 4.5 percentage points more in interest than German companies . This creates a level playing field for all European companies seeking access to capital. Mergers & Acquisitions- The value of M&A activity in the EU is $1.3 trillion per annum- a 400% increase on 1994 - this is leading to a pan-European economy. Energy Costs & Availability- Deregulation of state monopolies has brought more competition among suppliers and a fall in the price of gas and electricity.Social & Cultural Environment Demographics- World population is expected to grow from 6bn now ...
