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In order to evaluate the extent of Scottish and Newcastle (S&N) operations might be regarded as global, Yip’s (1992) Globalisation Drivers are used to determine levels of globalisation in the Central and Eastern European (CEE) brewing industry. Moreover, Stonehouse at al (2004) claims that the strength of the globalization drivers can affect the strength of the Porter’s five forces (1980) at work within an industry. The PESTEL macro-environmental framework has also been considered.
In the brewing industry, there are market drivers used as globalisation drivers, Levitt’s (1983) claims that customer needs are homogenizing, in this case, there are common customer needs for beer consumption worldwide; moreover, increasing number of markets (such as some emerging markets in CEE countries) and increasingly global customers also drive S&N to be global, in this case, there are increasing beer consumption trends in emerging markets, such as in China, Russia and Mexico. Therefore, it is essential for S&N expanded globally in order to increase competitiveness and strengthen market positions worldwide, especially in growth markets. The macro-environmental trend of growing demand from emerging markets pushes globalisation, (such as growth in domestic demand for beer in Russia and strengthened export efforts in Baltika and Vena).
Cost driver is also relevant to the brewer industry. By operating globally organization can benefits from greater scale economies, for example, C&N can choose low production cost countries with low labour cost, (China and Russia and some other emerging countries). In addition, organization can benefit through reduction in manufacturing cost and benefit from global sourcing of materials by centralizing the acquisition o ...