External Environment Analysis Previously, you read about the industry analysis of the beer, wine and liquor industry and the five forces that affect a firm’s ability to serve consumers and turn a profit. Next, successful companies must recognize and respond to the major forces affecting our macro environment, for example; stock market decline, increase in unemployment and global warming. Companies must now consider several external environmental forces while running their business, in particular, demographics, economics, social, natural, technological and political.
Demographics
Demographics can consist of population size, density, location, age, sex, race and occupation. In this analysis, we will focus on examining population …show more content…

Consumers are spending more on products and services that improve their lives rather than their image. Due to recent corporate scandals and layoffs, companies need to win back consumers. We value a product, service and company that is honest, Samuel Adams beer to some symbolizes patriotism because of the name. Other people have values that come from interest or social groups they belong to.” The nonprofit organization Mothers Against Drunk Drivers does not try to stop the sale of alcohol but promotes lower legal blood-alcohol levels for driving and limited operating hours for businesses that sell alcohol” (Kotler Keller). Your values, beliefs and influences may also come from heroes, celebrities or athletes. While our society’s average age is increasing, it is important for companies or role models to attract a teenage audience, as they will be able to keep them as a customer/fan later in life. Underage drinking and abuse is a problem that specifically affects the alcohol industry and companies have to deal with potential legal problems, which you will read about later. Another way companies appeal to the consumer and even our environment is by going green. Every company needs to consider environmental regulations, which is why you see more dollars invested in hybrid cars, organic foods, biodegradable goods and green office buildings. A significant trend to be aware of