1. The macro-environment is the external forces that are uncontrollable like economic,
cultural, political, etc. Economic, cultural, and political factors are all relevant
components of the U.S. and global craft beer industry. Economic factors affect the craft
beer industry because there needs to be a price point and demand for the specific beer.
Cultural factors are also a component because craft beer is more popular in developed
countries because of how expensive it is, and some cultures drink more beer than others.
Political factors are also a relevant component because of rules and regulations that come
with selling craft beer.
A PESTEL analysis starts with political factors such as government regulation,
import/export regulations, tax policies, etc. For this case global exports of craft beer
production in the US had been declining since 2008, but consumption was increasing
elsewhere in the world. The global market was increasing due to the different styles of
beer being distributed to parts of the world that had not previously had access to the
expansion of demographics. Therefore, exporting beer to developed and developing
regions helped drive the global consumption growth.
The global consumption growth also falls under the economic factors in the PESTEL
analysis. Growth rate is an economic factor and like previously discussed the growth rate
of craft beer has increased globally to different regions. For example, China has recently
seen several domestic craft breweries beginning to produce beer as well as experiment
with different flavors.
The S in PESTEL stands for social factors such as income, which applies to this reading.
Craft beer is definitely a social experience. Breweries that make these types of beers are
