STRATEGIC MANAGEMENT

Strategic Management

Tribe Stout Company

Introduction

The purpose of this document is to provide a strategic analysis of Tribe Stout - an Irish beer manufacturing company, based on its case study. The report will focus on the overview of the company and the beer industry of Ireland, the environmental analysis of the company including the analysis of its internal and external environment. In the analysis of external environment, the company's position will be examined using the models of PESTEL factors, and Five Forces Analysis. The TWOS analysis of the company will also be carried out highlighting its key strengths, weaknesses, opportunities, and threats, and their inter-relationship. After conducting the TWOS analysis of the company, the report will address the substantial strategies that should be used by the company to fortify its position in the market and nullify the effect of potential threats to its existence. In the end, the concluding remarks pointing towards the critical factors of implementation pertaining to the suggested strategies for the company will be developed.

In 1980, John TSC founded Tribe Stout - a beer manufacturing company in run-down warehouse of Galway City, Republic of Ireland. TSC is a small family-run company that makes traditional Irish stout for the local Galway market. John TSC set up the business after realising that tourist demands for local beers in Galway pubs and hotels were unmet due to a lack of locally produced beverages in the market. After inheriting money, he set up TSC and the organisation has grown from a very small three-person company with sales of €20,000, to 20 employees and sales of €1,500,000 up till this year. The company positions itself as a manufacturer of 'traditional' Irish stout (Tribe) sold in two bottle formats; 250ml and 500ml (both 5% alcohol content).

Environmental Scan

Internal Analysis

The Irish brewing sector exports over half the beer it produces - over 400 million litres at a value of €200m in 2009. Export activity is vital to Ireland's economy and the recovery that is necessary in the coming years. Only by tapping into international demand can Ireland return to growth. Ireland is the biggest exporter of beer into Britain - over 1.75 million barrels of beer travel from Irish brewers to the UK alone every year at a value of over €140 million, representing over one quarter of the UK's beer imports (Nykanen, 13).

External Analysis

PESTEL

In the PESTEL Analysis, we will identify the political, economical, social, and technological influences on TSC.

Political Influences

The production, distribution and use of many of TSC brewery products are subject to various Irish laws, such as the Food, Drug and Cosmetic Act of the country. Its business is also subject to the domestic taxation policy of each country in which it is operating. Hence, TSC is bound to comply with federal, state, local and foreign environmental laws and regulations.

Economic Influences

Operating in International Markets involves exposure to volatile movements in foreign exchange rates. The economic impact of foreign exchange rates movements on them is complex because such changes are often linked to ...