Effects of Macro-Environmental Factors: Running a Micro distillery in the Czech Republic

Abstract

The paper deals with the wider-environmental factors for operation and achieving prosperity of a micro distillery. These factors can be broken down into economic, political, social, technical, and technological factors. Operation of a micro distillery is then affected by all of them. The most important factors, however, can be seen in the political and economic factors. Legislative factors are crucial as they are the source of the reduced rate of the consumption tax. In terms of prices, this lower rate gives micro distilleries a great advantage over large fruit distillery plants. However, at the same time, the legislative area generates a number of challenging requirements that micro distilleries have to observe. The economic factors in the Czech Republic have not been developing favorably in recent years. This negative trend may have a positive impact on the demand for services of micro distilleries.

Keywords: PEST analysis, Micro distilleries, Company environment.