Global Forces and the European Brewing Industry

Executive Summary The aim of the study is to analyze the environmental factors that have contributed to the decline of the European beer industry using PESTEL and Porter’s five forces analysis.Advertising We will write a custom report sample on Global Forces and the European Brewing Industry specifically for you for only $16.05 $11/page Learn More The results were used to perform a SWOT analysis for Heineken. The findings reveal that the decline of European beer industry has been caused by high competition and government campaigns against alcohol consumption. Additionally, the industry has a low growth rate since it has reached its maturity stage. Brewery companies are responding to these trends through mergers, acquisitions and alliances. Heineken’s main strength is its strong brand image. Over reliance on few brands and the European market is the main weakness of Heineken. The opportunities available for Heineken include introducing new p roducts and joining overseas markets. Overall, the environmental trends are likely to have a negative effect on Heineken’s future competitiveness. Introduction Purpose The purpose of this report is to analyze the environmental factors that have contributed to the decline of Europe’s beer industry. In particular, PESTEL and Porter’s five forces analyses will be used to analyze the European beer industry. The results will be used to conduct a SWOT analysis in order to determine the effects of the industry trends on Heineken’s competitiveness. Scope The study focuses on the trends in the external and competitive environment of the European beer industry. Additionally, Heineken’s internal environment will be analyzed.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Background The study focuses on the European beer industry. It investigates the effect of the c ompetitive global environment on the European beer industry. Assumptions and Limitations Lack of current or updated information about the trends in European beer industry is the main limitation of the study. Thus, the statistics and data used in the report are assumed to be accurate. Methodology The data used in the study was collected through secondary literature review. The main sources of data included journals and strategic management textbooks. Industry Analysis PESTEL Analysis PESTEL analysis is a tool used by managers to assess the effects of the trends in the external environment on their businesses. PESTEL analysis considers the influence of political, economic, social, technological, environmental and legal trends on businesses. Political Trends Europe has a relatively stable political environment which promotes investment and trade between member countries. The formation of European Union led to the removal of tariff and non-tariff barriers to trade in Europe (Rojas and T ianji, 2011, pp. 10-12). This enabled beer producers to join European countries of their choice through exports and foreign direct investments. Trade liberalization in the region has led to an increase in cross-boarder mergers and acquisitions, thereby increasing competition. Economic Trends In 2010, the economy of Europe, as a region, grew by 1.8%. The region also recorded an inflation rate of 3.1% in 2010. About 17% of Europe’s population leaves below the poverty line. In general, the production costs for beer have increased by approximately 24% since 2006.Advertising We will write a custom report sample on Global Forces and the European Brewing Industry specifically for you for only $16.05 $11/page Learn More Additionally, nearly half of the European countries have significantly increased taxes on beer, thereby increasing the prices of beer. The slow economic growth and high prices have led to low demand for beer. Social Trends Concerns over t he health risks associated with drinking beer have increased in the last two decades. Government and non-governmental organizations are actively campaigning against excessive drinking (Zygadlo and Slondski, 2010, pp. 59-74). The significant reduction in sales for beer is mainly attributed to anti-alcohol campaigns. Drinking habits have also changed, with more consumers preferring to buy beer through retailers (off-trade) instead of bars and restaurants (on-trade). Pan European beer brands tend to be more popular among Europeans than the imported brands. Technological Trends Adoption of modern information and communication technology has enabled beer producers to enhance efficiency in their supply chains. Through research and development, alternative sources of energy such as bio-fuels have been developed and adopted by producers. The high rate of technological transfer and investment in research and development in Europe has improved access to modern production technologies (Bollman and Theuvsen, 2008, pp. 63-88). Overall, the use of modern technology has led to economies of scale in production and distribution of beer.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Environmental Trends Beer production depends on agricultural produce such as barley. Changes in climate due to global warming continue to affect the production of barley negatively. Thus, the production and consumption of beer is likely to decline in future (Woolverton and Parcell, 2008, pp. 420-430). Legal Trends The beer industry is highly regulated due to the health risks associated with alcohol. Consumption of beer is controlled through high taxes and restriction on beer adverts. The high regulation discourages production and consumption of beer. Porter’s Five Forces Analysis Porter’s five forces analysis enables managers to analyze the factors or forces that influence competition in their industries. New entrants Joining the beer industry requires a lot of financial resources which many firms are not able to access. The tight regulation associated with the beer industry also makes it unattractive to new entrants. In the context of Europe, high competition limits t he chances of rapid market penetration by new entrants. Consequently, the threat attributed to new entrants is low. This means that the incumbents can not easily lose their market shares to new firms. Substitutes Beer faces competition from its substitutes such as non-alcoholic drinks and other alcoholic drinks such as wine. The consumption of wine is increasingly becoming popular in Europe, thereby reducing the market share for beer. Soft drinks such as coca-coal cost less then most beer brands. Unlike beer, soft drinks are associated with little health risks. Thus, the threat attributed to substitutes is high in the beer industry. This implies that demand for beer is likely to reduce as consumption shifts to other drinks. Power of Suppliers The suppliers in the beer industry include farmers, energy producers and manufacturers of packaging material. There are many farmers supplying the brewers with undifferentiated products such as barley. The farmer’s products are very impo rtant since they are the main ingredients in beer production. The packaging and energy industries are highly concentrated. Thus, we can conclude that the suppliers have a moderate bargaining power. Power of the Buyers The producers of beer have low switching costs, and can easily shift from one supplier to the other. There are also a variety of substitutes for inputs such as barley, packaging material and energy. The threat of backward integration is high since some beer producers invest in the production of inputs such as packaging material and barley. In the context of consumers, changes in drinking habits make it difficult to ensure customer loyalty. Increasing brand identity also makes it difficult to shift consumption from one brand to the other. Additionally, the shift towards off-trade consumption of beer has enhanced the bargaining power of retailers. We can conclude that buyers have a fairly high power in the industry. Competitive Rivalry The threat attributed to competitio n in the beer industry is very high due to the following reasons. First, there are very many producers and importers of beer in the industry. Second, nearly all firms have embarked on product differentiation in order to attract more customers. Third, heavy investment in production plants is an exit barrier to firms that intend to leave the industry. Finally, the industry has a low growth rate since it is at its maturity stage. The threat attributed to competition is likely to lead to low sales and profits among beer producers. SWOT Analysis SWOT analysis enables managers to identify the strengths and weaknesses of a business (internal environment). It also helps managers to identify the threats and opportunities that are available in the industry (external environment). Heineken Heineken is the leading producer of beer in Europe. It has 11.7% of the European market and operates over 115 breweries. Strengths As the largest brewery company in Europe, Heineken boasts of a premium brand that is known for quality and value. The effective advertisement strategy used by Heineken has helped it to enhance its brand equity across Europe. The visibility of Heineken’s products is also high due to its presence in over 170 countries. By focusing on improving efficiency and reducing costs, the firm has been able to remain competitive in Europe. Weaknesses Heineken has the following weaknesses. First, Heineken mainly operates in Europe which accounts for 75% of its sales. Thus, a reduction in demand for beer in Europe is likely to have adverse effects on its profits. Second, Heineken over relies on its two main brands. Thus, it is likely to lose customers to producers with a variety of brands. Opportunities The low threat posed by new entrants in European market, coupled with rapid increase in demand for beer in emerging markets such as Asia is an opportunity for Heineken to increase its market share and profits. The rising demand for non-alcoholic drinks is also an op portunity of Heineken to develop new products (non-alcoholic and flavored drinks). Finally, the growth in off-trade market is an opportunity for Heineken to improve the visibility of its products by distributing the products through well established and efficient supermarkets. Threats The threats facing Heineken include the following. First, the threat attributed to competition is likely to reduce its sales and profits. Second, the high regulation on drinking and alcohol production is also likely to reduce its sales. Third, the European market which Heineken depends on has reached its maturity stage. Thus, chances of growth are limited. Finally, the threat posed by substitute products is likely to reduce the market share for Heineken’s products in Europe. Effect of the Trends on Heineken Market stagnation is likely to be experienced in Europe. Hence, there will be little scope for growth in the European market. High competition and slow market growth will result into a declin e in Heineken’s sales and profits. The current trend in consolidation is likely to continue. Consequently, more international firms are likely to join the European market, thereby reducing Heineken’s market share. Finally, Heineken’s dependence on only two brands is likely to lead to brand dilution, thereby reducing its competitiveness. Conclusion The European beer market has traditionally been the largest in the world. However, the fortunes of the market have since declined due to high competition, high regulation and poor economic performance in Europe. Heineken owes its success in Europe to a strong brand image, product visibility, and efficiency in production. Heineken’s weaknesses include over reliance on a few brands and the European market. The opportunities available to Heineken include the rise in demand for beer in emerging markets such as Asia. Overall, the trends in Europe’s beer industry are likely to have negative effects on Heinekenà ¢â‚¬â„¢s future competitiveness. References Atoyan, R., 2011. Beyong the Crisis: Revisiting Emerging Europe’s Growth Model. European Journal of Operational Research, 97(3), pp.113-116. Bollman, C., and Theuvsen, L., 2008. Strategic Management in Turbulent Markets: the Case of the German and Croatian Brewery Industry. Journal for East European Management Studies, 13(1), pp.63-88. Erickson, G., 2009. An Oligopoly Model of Dynamic Advertising Competition. European Journal of Operational Research, 197(1), pp.374-388. Jain, S., 2011. Global Competitiveness In the Beer Industry. European Journal of Operational Research, 34(7), pp.47-53. Meger, A., 2008. Apartheid and Business: Competition, Monopoly and the Growth of Malted Beer Industry in South Africa. Business History, 50(3), pp.272-290. Rojas, C., and Tianji, S., 2011. Tax Incidence when Quality Matters: Evidence from the Beer Market. Journal of Agricultural and Food Industry Organization, 9(1), pp.10-12. Woolverton, A., and Par cell, J., 2008. Can Niche Agriculturalist Take Notes from the Craft Beer Industry? Journal of Food Distribution Research, 39(2), pp.420-430. Zygadlo, K., and Slondski, T., 2010. Sustainable Growth Trade in the Strategic Analysis of Brewery Industry. Journal of Agricultural and Food Industry Organization, 2(1), pp.59-74. 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History of Physical Education Essays

History of Physical Education Essays History of Physical Education Essay History of Physical Education Essay To provide a meaningful background of physical education and sport in modern society it is helpful to have a clear understanding of its role in the past and how it emerged. The purpose of this assignment is to outline the history of physical education since time immemorial. The text begins with the beginning of the humankind engaging in physical activities, showing the history of physical education and sport being a rich tapestry of people, places, events and social forces from early civilization to the present time through transitional periods. INTRODUCTION The ground of education as a whole is going through remarkable challenges to serve the needs of the individual and the society, and this trend is reflected in physical education also. The history of physical education goes back to the earliest times, if we think of it in the simple terms of fitness and has existed since human society in one form or other. Since early history, even before the dawn of civilization and culture, physical exercise has been a very important aspect of human existence and it was not so long ago that it was called† physical culture† or â€Å"physical training†. THE PALEOLITHIC PERIOD Primitive humans began life in the â€Å"Stone Age. † What can they be called? Paleolithic people, Stone agers, primitive humans or cave men. They were hunters and gatherers. They hunted wild game and fished; they gathered veggies, berries and nuts. Primitive humans depended entirely on nature for food. Primitive men moved according to their satisfaction, needs and necessity. They needed to be fit to be able to go through their journey to hunt for food and water. Being nomads and hunters, they were people who had to be persistently hunting and gathering food for survival. Their trips regularly lasted for one-to-two days for food or water and were meant for regular physical activity to be produced. When they successfully hunted, they would travel many miles and miles to celebrate with family and friends. Physical activities were not organized by them. The necessity for survival which is the protection against hostile environment and wild beasts, and sometimes the engagement in murder to insure their protection, motivated these men to keep themselves physically ? t and strong enough compared to stronger forces of nature. In those days there were no machines to help people in their work. That is why they had to depend exclusively upon their physical powers and physical skill. They considered their body to be their prize possession, so their primary concern was to maintain and protect their body. The order of the day was the survival of the most fit. Their sociable nature was inborn and drew only by mating and propagation that gave them the desire to dance and play, which were not being organized. Men lived in such a state for thousands of years. There was neither any organization nor system. Most of their acts were learnt by the young generations by the competence of imitation rather than instruction. This lifestyle created many physical activities and a high level fitness which defined human life. THE NEOLITHIC TRANSITION Neolithic people lived during the â€Å"New Stone Age†, from 9000 to 8000 B. C. This was the transitional period in which pre- historic societies began to control their surroundings and form civilization. The two most significant developments were the domestication of animals and farming. Their society was different from Paleolithic culture because they lived in established communities, domesticated animals and cultivated crops. As they improved their society they developed skills like spinning, weaving and building. They also made tombs and religious items. Men and women gave up hunting gathering as the only sources of living and learnt to produce their own food. Agriculture and the raise of cattle were discovered and increased to a productive economy. Many villages were built generally located next to rivers. Then came the creation of the plow, so the difficult tasks being done by the animals and other agricultural development brought the beginning of a less active lifestyle. Social organization became more complex in the first villages, and then towns. Different kind of chiefs appeared and gave rise to a political system. There was class system whereby society was divided into rich and poor. A specialization of work took place. Apart from peasants and cattle farmers, new economical activities such as craftsmanship (fabric, pottery) were born. This era in history symbolizes the beginning of a more sedentary lifestyle, as man began to lessen some hardships of life while simultaneously decreasing daily physical activity. ANCIENT CIVILIZATIONS (2500-250 B. C. ) (i) China In China, the participation of regular physical activity was encouraged by the philosophical teachings. There were no such words in the Chinese vocabulary entirely corresponding to the Western terms of sport and physical education†. Such physical exercises as wrestling, swordplay, archery, charioteering and horse-racing were all incorporated in the military training and therefore came under the general term of wuyi, or martial arts. Kung Fu gymnastics was developed to keep the body in good and working condition. It consisted of various stances and movements, patterned by separate foot works and imitations of different kind of animals’ fighting styles. (ii) India India has a long recorded history of civilization but physical activity was not encouraged because of the religious teachings over there. The teachings of Buddha restricted most of the sports and games practiced by other early civilizations. However, an exercise programs known as â€Å"yoga†, same as the Chinese Cong Fu gymnastics, was developed and some other physical activities as well. According to the Hindu priests, Yoga signifies the development of body, mind, and spirit. The Ancient Indian philosophers recognized the health benefits of Yoga, which consisted of the proper functioning of organs and the whole well-being. There have been many physical activities but were never treated as a part of general education, they were mostly an entry to military career. ANCIENT GREECE: THE HEART OF PHYSICAL EDUCATION SPORT (2500-200 B. C. ) The western civilization began with the Greeks. They were the first one to provide a methodical and philosophical attitude toward education, physical education and sport. It is believed that no other civilization has held fitness in such appreciation as the ancient Greece had. The admiration for beauty of the body and importance of health and fitness throughout society is one that is beyond compare in history. For the Greeks, the development of the body was equivalently as important as development of the mind. They believed that the physical well-being was crucial for the mental well –being. During that period, the Greek states were frequently at war with each other. The Fighting abilities were very much associated with physical fitness levels, therefore making it very important for the people to maintain high level of fitness. Athens and Sparta were the two most famous city-states and dominant force of the Greek civilization. Sparta was already militaristic by 700 B. C. Spartans were derisive of intellectualism. They were generally suspicious and conventional. All that mattered to the Spartans was being a warrior. Athens was the more democratic of the two city-states. Both city-states served the people and their needs although they were very different. Being a potential warrior was all that mattered to the Spartans. Athens was the more democratic of the two city-states. SPARTA The Spartan system was much more autocratic. Male children were taken at the age of seven to learn the basic military skills while living in barracks. Little emphasis was placed on the arts, sciences, philosophy and literature. Physical activities such as gymnastics, running, jumping, boxing, wrestling and pankration (a brutal combination of boxing and wrestling) were provided to produce powerful warriors. When the children reached the age of fourteen, they were taught group fighting tactics which would allow them to succeed while in the military from the ages of twenty to thirty. Girls did not live in public military barracks like the boys, but they participated in discuss, gymnastics, horse riding, javelin, swimming, running, and wrestling at separate training grounds. The objective for women’s physical education was to enable them to produce healthy and strong potential warriors. At the age of thirty, the men could then marry women who were fit and healthy so that they could make strong babies, therefore future warriors. ATHENS For the Athenian -The motto for education was â€Å"a sound mind in a sound body† (mens sana in corpore sano) Athens was quite different compared to the Sparta. The Athenian culture was a very much more freethinking and democratic society specially noted for its art, literature, philosophy as well as its political system. There were citizens, foreign settlers and slaves but only the citizens were provided with educational opportunities. When compared to Sparta, education was very different in Athens. Women had no physical education compared to Sparta. They put much more emphasis toward intellectual quest. Their objective was similar to Sparta that is preparing male warriors. Athenian education was a balance between music (including poetry) and gymnastics which enveloped a range of physical activities. Physical education was provided to the students with a series of graded activities at the Palestra, which consisted of an indoor facility for gymnastics, and to an outdoor space for boxing, discus, javelin, running, jumping, pankration, pentathlon and wrestling. Many of these athletic events were part of the four great sport and religious festivals which consisted of the Olympic, Isthmian, Pythian and Nemean Games. These games started as simple athletic contests dedicated to Greek gods, but the Olympic Games, in particular, over 1000 years, became increasingly complex encompassing events for boys and men in running over different distances, pentathlon, wrestling, races in armour, chariot races, and pankration. As of education more broadly, the clear objectives of physical education in Athens were to educate the mind and the body and to produce a well integrated person. ROMANS The political ambition of Rome incorporated physical education into a national program for the preparation of military. Therefore, similar to the Greeks, sports, games and physical recreation were meant to prepare boys and young men for military service. Physical education for the Romans was about athletics, which was entertainment above all. All Roman citizens between the ages of 17 and 60 had to be fit for the military service, so it was very important for all the citizens to maintain good physical condition and be prepared. Military training consisted of activities such as running, marching, jumping, and discus and javelin throwing. The fitness levels of the general Roman population declined as individuals became attracted to wealth and entertainment. People were forced to fight to the death, and oftentimes fed to lions. Women were not as marginalized in Rome as they were in Greek city-states. Some sporting events were organized for young women such as swimming, dancing, and light exercise was common, especially among the privileged classes. THE DARK (476-1000) AND MIDDLE AGES (900-1400) The Middle Ages saw the fall of the Roman Empire which was conquered by Barbarians from Northern Europe, whereby the lavish lifestyles of the Romans had resulted in the complete decay of the societys fitness level. There was the rise of Christianity, and the Christian’s influence brought about a denial of physical activity for anything other than manual labor. They viewed physical play as immoral, so they halted the Olympic Games in 394. The barbarians from Northern Europe were similar to the primitive humans. Their way of life consisted of hunting and gathering food, so physical activity and fitness were fundamentals for survival. Thus, despite the downfall of the Roman Empire, fitness experienced a revival during the Dark and Middle ages because survival during these challenging times required it. THE RENAISSANCE (1400-1600) During the Renaissance, a renewed appreciation for human life evolved creating an environment which was ready for the widespread development of physical education; revival of ancient Greek ideals throughout Europe. There were many people which included the religious leader;Martin Luther, the philosopher; John Locke, physical educators; Vittorino da Feltra, John Comenius, and Richard Mulcaster carried on that high fitness levels improved intellectual learning. But in the 1600s people believed that if it did not have any specific purpose than just a waste of time. PHYSICAL EDUCATION AS FROM THE 1700S There was a big change in physical education during the 1700’s which can be mostly accredited to three people: Jean Jacques Rousseau, Johan Simon, and Guts Muths. Rousseau was the first person to promote education for the people and he also concluded play as being educational and stressed the importance of physical education to the development of a strong body. In the mid 1700s, Johan Simon became the first physical education teacher and stressed on the fact that physical education should be taught along with reading and writing. Simon believed physical education should include a lot of physical effort. Guts Muths developed a series of gymnastic apparatuses and believed that very important social skills are developed through physical education. These people of that time and the things they did began to pave the road to where we are today. In 19th-century, the first indoor gymnasium was built in Germany and some countries such as Europe, Sweden and Germany developed systems of gymnastics that were adopted internationally. A gymnasium was also build in Finland where exercise was for the first time seen as a way to achieve physical treatment. In connection to exercise, students started to study anatomy and physiology. Denmark was among the first countries to require physical education in schools. By the 1820s, some American schools offered gymnasium and physical education. The physical education included the development and care of the body, and training in hygiene, callisthenic exercises, gymnastics, and the performance and management of athletic games. CONCLUSION Physical education has a cultural heritage and background which started at the dawn of civilization. Primitive human being had to be very active and physically to survive. Farming began in its primitive form and made people have more physical activity from only working in the fields. People fitness levels changed here and the also began seeing a more sedentary lifestyle. Ancient Greek culture depended upon preparing its young men for war. Training for battle was not an option, but a prerequisite. Ancient physical education programs concentrated exclusively on activities that trained soldiers. The significance of physical education no longer concentrates solely on training soldiers for battle and ancient athletes for victories but for the wholesome development of a person. It began in ancient Greece and made its way around the world. REFERENCES S. E. Smith. What was the Neolithic Period?. Available: wisegeek. com/what-was-the-neolithic-period. htm. Last accessed: 30th Oct 2012. Charles A. Bucher. (1983). Historical foundations of physical education and sport. In: Nancy K. Roberson Foundations of physical education and sport. US: The C. V. Mosby Company. P133-155. cals. ncsu. edu/agexed/aee501/rousseau. html http://prezi. com/ieokiwmde3ni/history-of-physical-education/ Howel et al. 1994. History Of Sport And Physical Education. In: Foundations of Physical Education,pp. 17-117 A. Bruce Frederick. Gymnastics. Available: britannica. com/EBchecked/topic/250277/gymnastics#ref700589. Last accessed: 01st nov 2012.