There’s trouble brewing with PESTEL

, , ,

Last week the UK chancellor unveiled his budget. The general consensus seems to be that it wasn’t a particularly exciting budget with the chancellor playing safe on most things.

What has caught the public eye though is the announcement that duty on cider (an apple based alcoholic drink) would increase by 10% above inflation. This would add approximately 5p to a litre bottle of cider. This has upset the cider drinkers and thousands have joined facebook groups hoping to get the decision reversed.

We mentioned the C&C group in a previous blog about spreadsheets. The C&C group own the Magners cider brand which is one of the best known cider brands in the UK.

The change in duty imposed by the chancellor is a classic case of how the “P” (Political) in PESTEL can impact on a company. Magners has reacted quickly to this though by launching  a press campaign saying that they will cover the increase in duty and will not increase their prices.

The C&C group may meet the “P” again soon though as there is discussion about the Scottish government introducing minimum unit pricing for alcohol in order to try to curb the health problems involving alcohol that are present in Scotland. The C&C group dominates the Scottish lager market with the brand Tennents.

So, if somebody asks you what is the link between cider, lager and PESTEL you now know the answer.

Rolling in it...
Here’s a question for you – what do you think the average age is of somebody who buys a new Rolls-Royce? Perhaps surprisingly the average[..]
An unexpected ending...
A lot of you may have been on business trips but I bet your trip wasn't as exciting (and tragic) as this gentlemen's trip was.[..]
Would you send a photo?
Picture the scene. You’re one of the largest supermarket chains in the Netherlands employing more than 100,000 people. You’re planning on introducing a new staff[..]
Ericsson fined $1 billion for bribery.
The Swedish telecommunications group Telefonaktiebolaget LM Ericsson (or Ericsson as most people refer to it as and how my spell checker prefers) is an incredibly[..]
Exams for sale....
One of the five fundamental ethical principles is Integrity. Being straightforward and honest is a vital characteristic of being a professional accountant. Most people who[..]
Wave hello to a discount
The accountants amongst you will be well aware of the different methods of setting the price of a product or service. Going rate, cost-plus and[..]