Key Challenges Faced by Adnams in the External Environment

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Key challenges faced by Adnams in the external environment................................................................3
Explains the key internal factor regarding the situation of the business...................................................4
Strategic Decision which can be taken by the ADNAMS to grow...........................................................5
Recommendations for Adnams’ development over the next ten years.....................................................6
CONCLUSION..........................................................................................................................................8
REFERENCES........................................................................................................................................10

INTRODUCTION
Organizational Strategy is the set of action which are taken to improve the performance and to
achieve the long term organizational goal. Adnams is a regional brewery founded in 1872 by the
founder George and Ernest Adnams. These report highlights the Key challenges which are faced
by the Adnams in their external environment. Further these report explain the key internal factor
of the Adnams. These report also contain the strategic decision which can help the business in
growing the business in global market and in the end report recommend ate the development
policy for ADNAMS.
MAIN BODY
Key challenges faced by Adnams in the external environment.
Despite the regular research and development work carried out by the R&D department of
Adnams; the recurring changes in the market always presents challenges which have to be dealt
with in the external environment. Some of the key challenges faced are: -
Strict Regulations: - Alcohol industry has always been the one which has been strictly
monitored by the government. The trade practices are not easy to carry out and the deals and the
negotiations carried out in this industry are always keenly scrutinized by the government.
Discouraging Alcohol Consumption: - People have become wiser and more educated about
how they should spend their hard earned money, especially after the recession period. The
income generated by pubs has declined. The rise in the prices of beer at Adnams has also been a
major reason for the downfall in the sales of their beer.
Evolution in Consumer’s tastes: - Over the time, there has been a change in the idea behind
relaxation. Earlier people preferred a bottle of beer after a hard day’s work. Now a day, people
have refined their tastes and a glass of wine is a more preferred source of relaxation than a beer
pint.
Preference for Drinks Containing Higher Alcohol: - People have shifted from Adnams’ low
alcohol containing beers to something stronger. Pubs have also reported increased sales of cask
ale and since it is more profitable, they have increased its supply. Though Adnams has ventured
into providing caked drinks, it has not been able to shake the image of its good old beer
company.