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American Beer Company Entering The Beer Market In Austria

3406 words - 14 pages

Summary
For American beer producers to succeed in entering the beer market in Austria, they must thoroughly understand the cultural, economic, and political forces that control the society and how if functions. The Austrian society and its culture is one of the older, more prominent societies in Europe. Although the country has advanced itself into a highly industrialized and technologically advanced entity, Austria can present significant obstacles when it comes to trying to do business.
The cultural forces in Austria seem to be centered on its system of values. Austrians tend to be slow decision makers by American standards. Austrians are detail oriented persons and exercise caution ...view middle of the document...

A beer producer should be thoroughly knowledgeable of the cultural differences that are present and use that knowledge to successfully segment the beer market and properly build a targeted marketing plan. The potential to profit in marketing American beer exists, but so does the potential for problems. Seeking legal advice from an Austrian based legal firm will help in navigating the complex system of regulations that exist in Austria and the EU.
Introduction
The intent of this report is to examine and convey information regarding Austria’s cultural, economic, and political states, with the ultimate objective of providing American beer producers information that can help them penetrate the beer market in Austria. As a whole, this report presents a big picture view of modern day Austria. The Social Process Triangle Model was used to analyze the overall social environment. The Social Process Triangle Model is divided into three sub-triangles, which are Cultural Commonality, Economic Commonality, and Political Commonality.
The sub-triangle, Cultural Commonality, discusses the cultural forces that affect the social process, consisting of factors such as population, education, social structure, and customs. The sub-triangle, Economic Commonality, discusses the economic forces that affect the social process, consisting of factors such as Gross Domestic Product (GDP), the workforce, distribution systems, marketing, and financial services. The sub-triangle, Political Commonality, discusses the country’s political forces that affect the social process, consisting of factors such as the balance of payments, political stability, trade regulations, and corruption. Lastly, this report will explain what this information means to American beer producers desiring to do business in Austria.
Cultural Forces
Austria is the 95th most populous country in the world with an estimated population count of 8,223,062 as of July 2014. The age structure shows that 11.6% are ages of 15-24, 42.9% are ages of 25-54, 19.2% are ages of 55-64 and 18.9% are age 65 or older. Austrian men have a median age of 44.3 years with a life expectancy of 77.25 years, while Austrian women have a median age of 43.2 years with a life expectancy of 83.24 years. It is estimated that 68% of the total population lives in an urban environment. Austria’s population growth seems to be almost stagnated and may actually be shrinking. The annual growth rate is estimated at only 0.01% for 2014, and the death rate is slightly out-pacing the birth rate.
One factor affecting the composition of the population is the net migration rate, which is projected to be 1.76 migrants per thousand for 2014. This wider variety of ethnicities that make up the population results in more languages being spoken than the official language of German. Other languages include Turkish, Serbian, Croatian and Hungarian which is both named as an official language in the state of Burgenland and Slovene, which is named as an...

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