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Question: Discuss about the Concept of Strategic Management. Answer: Introduction This report encompasses through all the concepts related to the strategic management. The case study based on the global and economic forces and the western European brewing industry has been analyzed to examine the critical issues of strategic management in the industry. In the past decades, it has been observed that brewing industry has gone under many changes. In the global environment of social and economic changes, brewing industry is facing challenges particularly through global competitive forces and consolidation by alliances, internalization, and acquisition. To analyze this major strategical issue, several articles and journals related to this concern have been reviewed in this report. Accordingly, organizational strategic management cannot be alienated from the different strategic approaches of an organization within the industry. Therefore, this report aims to serve as a critical review of the major strategic approaches to the strategic organizational management since it is an important step towards the establishment of new framework for organizing change in the industry. Discussion Critically evaluate the current state of the European brewing industry using the Inside-out and Outside-in view. The brewing industry of European Union has experienced astonishing changes. In the late 20th century, Europe has been considered as the recognized center for the brewing industry. However, since 2006, the consumption of beer has fallen down by 10% in the wide market of the United Kingdom and Germany across the world. In the year 2008, Germany, the largest market of Europe was ranked as 5th in the global economy among China, Brazil, Russia and the United States (Whittington, 2013). In the 21st century, the Europe brewing industry had faced a huge wave of mergers and acquisitions. With the increasing economies of scale, distribution of beers in a country is comparatively expensive than the consumer goods. The average percentage of consuming alcohol is found to be 4.5 percent by volume. The consumption of alcohol may vary depending on the taste and preference, style of the consumers across different region and culture. In Europe, alcohol forms an essential part of many lives and culture and thereby moderately consumed as the lifestyle drink within the government restriction. The global forces of internal and external environment have established a strategic management in the European brewing industry. Moreover, the strategic management of an organization is affected by several reasons and alteration in the global economic environment. Several factors affecting Europe brewing industry have a greater impact on the other related industry (Larimo, et al., 2006). In the recent years, European brewing industry has decline with the fall in its beer consumption. This decline has been observed due to key factors affecting the market situation. Government of the country is strongly campaigning against the consumption of beers among the public. These campaigns significantly hamper the general public against drunken driving and thereby have a great impact on the tendency to drink alcohol in bars, pubs, and restaurants. Through these campaigns, people increase their awareness about the harmful effects of alcohol and thus they have been concerned about their fitness and health issues. Specifically in the United Kingdom, hostility named binge drinking is rapidly growing in the country with the unnecessary consumption of beer in the clubs and pubs. However, in the Northern European market, popularity of wines has become increased in the recent years. Moreover, consumption of beer per capita largely varies within the countries of Europe as consumption of beer in Germany is almost four times higher than Italy. However, increase in the case of drunken driving and binge drinking has resulted into shift in the sales of beer in the European markets. In 2008, the increase in off trade of alcohol has been observed from the year 2000 i.e. 63% to 67% of volume. Thus, the shift in trade of alcohol is dominated by the chains of large supermarket, for example, Carrefour or Tesco. These supermarkets most often cut down their offer prices on alcohol so as to attract public into their shops. Therefore, due to this effect more than one fourth volume of beer is currently selling thro ugh these supermarkets (brewersofeurope, 2001). Although, fall in the trade volume does not affect sales values as it is generally rising because brewers are introducing high premium products including fruit flavored beers, nonalcoholic beers, and extra cold lagers. A high demand for these premium products is satisfied in the form of imported exotic beers from overseas. However, the brewing industry of Europe is comprises of different kinds of competitors in the market. Some of the largest brewers in the world are Anheuser Busch InBev, Greene King, and Tsingtao which are established in Belgium, United Kingdom, and China respectively. These companies have transformed themselves from the spectacular mergers and acquisitions (Verstl Latz-Weber, 2010). However, economic strategy of the brewing industry have different concentration pattern across the countries due to availability of raw material and cheap labor. But recently, with the development in communication and technology, national beer market has also got significantly affected due to these global forces and strategic policies of the country. The increasing awareness about the harmful effects of alcohol at the global scale has reduced competitors in the national beer markets (Madsen Wu, 2014). The brewing industry has gone through further changes since this case was written. Please critically evaluate these changes in a strategic context. The European brewing industry has changed itself by increasing efficiency and building a strong brand around the world. The European brewing industry has a great social and economic impact on the Europe after going through the strategic changes. The industry has contributed to the European Union economy to a larger extent. The performance of the Europe brewing industry reflects a significant impact on the government revenue. However, government has increased taxes on the alcohol products which in turn have increased the cost of production. The industry and market trends have changed due to the process of internalization and global forces in the environment. After 2013, the Europe brewing industry has changed because of its wide diversity. The global market of beer production involves a huge variety of beer brands in the country. The consumption of wine has reduced among the public due to the increasing awareness of its negative effects. The global pressure for beer consolidation has arisen because of the overcapacity and increased production cost. The acquisitions, alliances and closure of brewing industry has control the consumption of alcohol. The government has also taken a major step towards the increasing awareness of consuming alcohol(Berkhout, et al., 2013). With the implementation of strategic changes taking place in the Europe brewing industry, it has significantly grown from the financial and social crisis. The European Union remains the second largest producer of alcohol in the world after China. It has contributed to a large part of the country's income and growth. In 2014, European Union has increased the number of brewery companies i.e. over 6500 companies recently with the production of beer measuring 383 million hectoliters. Thus, brewing industry is flourishing over other sectors in the European market (Grave, 2016). Brewing industry is considered as one of the oldest industry in the European Union which has also faced challenges and innovation across the nation. The brewers are heavily investing in the beer brands and other products of alcohol. Based on the taste and preferences of the customers, industry is focusing on growing different variety of beer which includes lower or non-version of alcohol in the beer products. This also meets the consumer criteria of consuming alcohol with having less negative effects on their health issues. The exports of European beer production are nearly around 20% that has resulted into an effective proportion of beer and other alcohol exports in the world. In the recent years, the European brewing industry has faced several small and medium changes through acquisitions. This merger and acquisition of beer industry dominates the other sector in the global economy. However, operation of brewing industry is highly competitive and consolidated in the business market. It organizes their business activities in the modern economy and thereby determines the feasible choices of beers among the general public. The global development and high sales of breweries has been affected through traditional volume of alcohol prices. In the emerging economy, a notable increase in the demand of beer among the public has been observed. There is wide range of beer produced by the Europe brewing industry with lower amount of alcohol in it. This also does not affect the consumers' health in a negative way. The competitive pressure through the consolidation by alliances and acquisitions has greatly affected the brewing industry strategically (Play, 2007). Conclusion The strategic management of Europe brewing industry has been analyzed in this report. Over the last several years, the European brewing industry has gone through several changes and significant challenges in the global economy. Occurrence of acquisitions and strategic alliances has control the production of beers in the market. Government has also taken major steps against the consumption of alcohol among public because it negatively impacts on the health of the consumers. After a decline of brewing industry, Europe has significantly made changes in its strategic development and variety of products. However, the global pressure for strengthening the brewing industry is due to its overcapacity and consumption of strong beer brands. Bibliography Berkhout, B. et al., 2013. The Contribution made by Beer to the European Economy, l.: s.n. brewersofeurope, 2001. The Brewers of Europe, l.: s.n. Grave, J. d., 2016. BEER IS BACK: European brewing sector returns to growth - hundreds of new breweries created. pp. 1-2. Larimo, J., Marinov, M. Marinova, S. T., 2006. The Central and Eastern European brewing industry since 1990. British Food Journal , 108(5), pp. 371-384. Madsen, E. S. Wu, Y., 2014. Globalization of Brewing and Economies of Scale, l.: s.n. Play, G. F., 2007. Brewing, l.: s.n. Verstl, D. I. Latz-Weber, H., 2010. The European brewing industry in transition. l., s.n., pp. 1-86. Whittington, R., 2013. Global Forces and the Western European brewing industry, l.: s.n.