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In recent years, the nature of the alcohol beverage industry has changed drastically. This leads to a need for a new strategy for managing companies that would correspond to the changes in how consumers perceive these drinks. The amount of beer consumed in the US has been decreasing for years. Moreover, the trend is similar for other countries, as the global level of alcohol consumption has fallen by 1.4% in 2016 (The Data Team, 2017). The issue possesses a threat to the alcohol industry as it may result in lower profits and an inability to expand operations. This paper aims to review the recent management trends in the alcohol beverage industry that are directed at enhancing the potential of the sector. More specifically to examine the strategies of CSR and the importance of addressing ethical dilemmas associated with the industry, which affect the managerial decisions within organizations.
CSR Model and Social Initiatives of the Companies
The implementation of Corporate Social Responsibility can help alcohol Beverage Companies respond to the negative perception of the industry’s products. This trend in management is occupying other industries as well. According to Meier and Cassar (2018), “among the largest 250 companies in the world, 92% produced a CSR report in 2015, informing shareholders and the public about the firm’s activities” (para. 1). Thus, it is becoming more critical for a company to create a favorable ethical climate with how it operates and manages people. Alcoholic beverage companies need to address the ethical issues due to the current negative public perception of alcohol, associated with alcohol addiction.
Being aware of ethical problems associated with the industry is becoming increasingly important. Pantani et al. (2017) state that the new trend that the management of alcohol beverage companies uses is the CSR model. The approach aims to enhance marketing potential and its effectiveness to help companies sell more products. Pantani et al. (2017) conducted their study in Latin America and the Caribbean. They suggest that creating legislation directed at the regulation of public health initiatives in the alcohol industry can be helpful for the executives. Nevertheless, the research can be useful in understanding how to increase the potential of companies that operate in the US.
Beverage companies are becoming more involved in philanthropy and the promotion of socially necessary actions. Firstly, the authors concluded that it is crucial to connect the marketing strategy to the CSR model (Pantani et al., 2017). The need for it arises from the conclusion that the actions of a company that were directed at raising awareness on alcohol consumption among young people that had a marketing objective had better outcomes for the organization. Thus, alcohol production companies are more likely to promote their brands when engaging in social activities. The trend emphasizes both the importance to address social aspects associated with the industry and the marketing strategy of promoting the products.
Another trend in alcohol industry management is promoting self-regulation and responsible drinking. According to Hessari and Petticrew (2018), an increasing number of organizations have been including these aspects of product consumption in their marketing approach. These activities are connected to the CSR strategy as they address critical social issues. However, the authors emphasize that the effectiveness of the method is questionable due to the vague communication of the factors (Hessari, & Petticrew, 2018). A variety of materials published by executives of alcohol manufacturers was examined to determine whether the message fulfills the purpose. Most utilized “responsible drinking” as the primary objective of the actions (Hessari, & Petticrew, 2018, p. 1). The conclusion was made that although the strategies have a good aim, they lack a unified understanding of the term. The problem is restricting the fulfillment of the plan. Thus, a recommendation was made to adhere to the government recommendations regarding alcohol consumption when creating the strategies for marketing responsible drinking.
The two articles in question present an overview of the essential trends in the alcohol beverage industry. Implementation of CSR approaches to management, participation in philanthropy and socially significant initiatives, and adjusting marketing strategies to promote responsible drinking are the main objectives of the actions. The articles, however, emphasize that the companies are not fulfilling the moral purpose of their efforts, which can adversely affect their perception. A more unified approach can help enhance the new management trends of the industry.
Conclusion
Overall, the management of the alcohol beverage industry is currently focused on improving the public image of its products. For it, the CSR strategy is utilized to ensure that the organizations are concerned with ethical issues and other problems of the local communities. It is essential to connect CSR to the marketing strategy to provide the promotion of the brand. Moreover, the companies create a variety of marketing materials to address responsible attitudes towards alcohol consumption. Other socially essential actions such as teaching the youth about the dangers of overdrinking are used as well. Thus, the industry management is focused on creating a proper social responsibility model that would correspond to the concerns of the public.
References
Hessari, N. M., & Petticrew, M. (2018). What does the alcohol industry mean by ‘Responsible drinking’? A comparative analysis. Journal of Public Health, 40(1), 90-97. Web.
Meier, S., & Cassar, L. (2018). Stop talking about how CSR helps your bottom line.Harvard Business Review. Web.
Pantani, D., Peltzer, R., Cremonte, M., Robaina, K., Babor, T., & Pinsky, I. (2017). The marketing potential of corporate social responsibility activities: the case of the alcohol industry in Latin America and the Caribbean. Society for the Study of Addiction, 112(1), 74 – 80. Web.
The Data Team. (2017). Around the world, beer consumption is falling.The Economist. Web.
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