Johnnie Walker - United Kingdom Essay

2364 Words May 10th, 2012 10 Pages
Module: Economics and Business Environment Subject: Business Environment Academic Year: 2011/2012 Semester: 1st Lecturer: Assist. Prof. Mariana Murzova

Coursework On

JOHNNIE WALKER – United Kingdom

Submitted by : Dragomir Ralchev

Word count : 2342

Date: 31.10.2011

1. INTRODUCTION 1.1. 1.2. 1.3. The inspiring story of Johnnie Walker – A Brand Was Born History of company’s development and marketing strategies Mission and aims PEST ANALYSIS 3 3 3 4 4 4 5 5 5 6 MICROENVIRONMENT 6 6 7 7 7 8 9

2. JOHNNIE WALKER IN THE UNITED KINGDOM 2.1 2.2 2.3 2.4 2.5 Political Factors Economic Factors Social and Cultural Factors Technological Factors Natural Factors

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But how does the political, economic, social and technological factors affect the growth of the company? Let’s start with the PEST analysis of the beverage.

2.1. Political factors
The United Kingdom government decided to increase the revenue taxes, because a range of studies have found that increasing the price of alcohol can reduce road accidents and fatalities; workplace injuries; deaths from cirrhosis of the liver; various kinds of violent crime, including assaults, rapes, robberies and child abuse. The heavy tax over this kind of beverage is directly affecting its price, which somehow is affecting the consumption of the product. Although for reasons of raising tax revenue the UK is one of the high alcohol tax countries of Europe.

Keep walking…


However, the higher taxes and the increase of prices of alcohol do not affect so much Johnnie Walker, because the potential customers of these class products are mostly connoisseurs. They won’t change their taste only because of a change in the taxes.

2.2. Economic factors
We have to keep in mind that the inflation rate in the United Kingdom for the last few years has jumped steadily. The Johnnie Walker’s company is producing only luxury beverages. Some of the consumers may prefer to drink a cheaper whiskey, rather than buying the expensive one. However, this will not affect much on the profits of the company, because as we said – Johnnie Walker’s

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