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(            Scotch                   Whisky Cluster 2012                   Group 7                   Aimée Tañón, Amit Ra...
(        Scotland                                                                 )                 ⊛     Scotland        ...
(            Scotland                   Country History ✣ Microeconomic Performance ✣                   National Diamond  ...
(        Scotland         Five periods that shaped the country                                                 )         1...
( Indicator                    Economic Indicators                                        Objectives                      ...
(        National Diamond                                    )Wednesday, February 22, 2012        6
(            The Scotch                   Whiskey Cluster                   Introduction Scotch Whiskey Cluster ✣ History ...
(        The Gaelic "usquebaugh", meaning "Water of Life", phonetically became "usky"                 and then "whisky" in...
(        Historic Timeline                 ⊛     1100 First distillation occurred in Scotland in the early Christian      ...
(        "Why do some nations succeed and others fail in international                 competition?" Double Diamond Theory...
(         Scotland’s Food/Drink & Whisky Cluster                                 ~ 2010 ~                                 ...
(         Scotland’s Food/Drink & Whisky Cluster                                 ~ 2010 ~                                 ...
(               Scotland’s Whisky Cluster                             ~ 1500 to 2012 ~                                    ...
(            World Scotch                   Whiskey Market                   Scotch Global Market ✣ Whisky Making Process ...
(        Global Sales Statistics Exports                   Country/ Region                                      Exports in...
(            Top 10 Export Markets by Value                           Country                                        [ Jan...
(        Scotch Whisky ProcessWednesday, February 22, 2012                                         )                      ...
(        Steps to Making Whisky                 ⊛     Malting                                          )                 ⊛...
(        Scotch Regions                                                                               )                   ...
(        My Whisky Cellar                                       )                 ⊛     Age                 ⊛     Small Ba...
(            The Scotch                   Whiskey Cluster                   Cluster Competitiveness ✣ Diamond Analysis    ...
(                                                                                   )                 “Geographic concentr...
(        Scotch Cluster Diamond                                          )Wednesday, February 22, 2012              23
(            The Scotch                   Whiskey Cluster                   International Competition ✣ Challenges for    ...
(        International Competition                                                                 )          There was a ...
(        International Competition               Vodka and cognac are the best performers in sales                        ...
(        International Competition :                 India                                             )                  ...
(        National Challenges                                                                  )                 ⊛     Poor...
(        Most Important Challenge?                 High Taxation                               )        Approximate amount...
(        Strategy & Recommendations                                                                                     ) ...
(              Thank you!                   Go raibh maith agat!   )Wednesday, February 22, 2012              31
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Scotch cluster2012 gr7v6

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Microeconomics of competitiveness

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Scotch cluster2012 gr7v6

  1. 1. ( Scotch Whisky Cluster 2012 Group 7 Aimée Tañón, Amit Rawat, Ataol Oktem, Loreto Scaff )Wednesday, February 22, 2012 1
  2. 2. ( Scotland ) ⊛ Scotland ⊛ Scotch Whisky Cluster ⊛ World Scotch Whisky Market ⊛ Challenges for Growth & RecommendationsWednesday, February 22, 2012 2
  3. 3. ( Scotland Country History ✣ Microeconomic Performance ✣ National Diamond )Wednesday, February 22, 2012 3
  4. 4. ( Scotland Five periods that shaped the country ) 1. The Scottish Wars of Independence 1286-1328 2. The Age of Reformation, 1542-1603 3. The Treaty of Union, 1689-1740 4. Migration and Empire, 1830-1939 5. Impact of the Great War, 1914-1928Wednesday, February 22, 2012 4
  5. 5. ( Indicator Economic Indicators Objectives Today´s performance ) 2010,Q3: -1,1 To raise the GDP growth rate to the 2010,Q4: -0,8 Economic Growth UK level by 2011 2011,Q1: -0,5 2011,Q2: -0,4 2010,Q3: -1,2 To match the GDP growth rate of 2010,Q4: -1,7 the small independent EU countries 2011,Q1: -1,8 by 2017 2011,Q2: -2,0 To rank in the top quartile for 2006: -17,9% productivity against theirs key 2007: -16,7% Productivity trading partners in the OECD by 2008: -17,5% 2017 2009: -13,7% 2008: 73,9% To maintain their position on labour Participation in the 2009: 72,1% market participation as the top UK labour market 2010: 70,5% performing country in the UK 2011: 71,4% 2007: 3,3% To close the gap with the top five 2008: 3,7% OECD economies by 2017 2009: 5,0% 2010: 3,7% Source: Scottish Government websiteWednesday, February 22, 2012 5
  6. 6. ( National Diamond )Wednesday, February 22, 2012 6
  7. 7. ( The Scotch Whiskey Cluster Introduction Scotch Whiskey Cluster ✣ History & Evolution ✣ Scotch Whisky Cluster )Wednesday, February 22, 2012 7
  8. 8. ( The Gaelic "usquebaugh", meaning "Water of Life", phonetically became "usky" and then "whisky" in English.Wednesday, February 22, 2012 ) 8
  9. 9. ( Historic Timeline ⊛ 1100 First distillation occurred in Scotland in the early Christian ) monastic sites. ⊛ 1495 - First written mention of Scotch whisky is in the Exchequer Rolls of Scotland. whisky derives from uisge, which is an abbreviation of uisge beatha, the Scots Gaelic for Water of Life and was used for medicinal purposes. ⊛ 1644 first taxation on scotch whisky, illegal moonshine era ⊛ 1770‘s first whisky export ⊛ Early 1800’s new taxation (financed the war with France, industrial revolution ⊛ 1920‘s Prohibition created a high demand for the export of whisky ⊛ 1995 tax was reduced on scotch whiskyWednesday, February 22, 2012 9
  10. 10. ( "Why do some nations succeed and others fail in international competition?" Double Diamond Theory (Porter)Wednesday, February 22, 2012 ) 10
  11. 11. ( Scotland’s Food/Drink & Whisky Cluster ~ 2010 ~ ) • Fragmentation of the Food & Drink industry • Strengths are within the whisky industry sector • Low investment in R&D and innovation • Little collaboration and cooperation • Weakness of links between organizations and the whisky sector • Lack of connectivity between the areas of strength and those of weaknessWednesday, February 22, 2012 11
  12. 12. ( Scotland’s Food/Drink & Whisky Cluster ~ 2010 ~ ) Source: Scottish Government websiteWednesday, February 22, 2012 12
  13. 13. ( Scotland’s Whisky Cluster ~ 1500 to 2012 ~ ) UK/ Tourism Transportation Entertainment Nuts Scotland Supplier : Farmers EU Glassware Casks Hospitality (Casinos, Airline Media / Restaurants) Mixers Distilleries (Soda/Juices) Industry Publishing Bottlers & Corporations Tobacco Education Snacks (Chips) Distributors Scotch WhiskyWednesday, February 22, 2012 13
  14. 14. ( World Scotch Whiskey Market Scotch Global Market ✣ Whisky Making Process ✣ The Scotch Regions and Their Distilleries )Wednesday, February 22, 2012 14
  15. 15. ( Global Sales Statistics Exports Country/ Region Exports in million Exports in Million % Change ) Euros (2010) Euros (2011) Asia €317.7 €422.5 33% USA €233.7 €267.6 14% France €192.5 €219.5 13% Central & South €143.9 €214.4 49% America Taiwan €48.2 €70.0 45% Brazil €28.7 €44.8 56% Total Exports €1,470.0 €1,800.0 22.4% Source: BBCWednesday, February 22, 2012 15
  16. 16. ( Top 10 Export Markets by Value Country [ January - June 2011 ] Exports in Million Euros % Change ) USA €267.60 14% France €219.50 13% Singapore €148.50 64% Spain €97.20 (-16%) Taiwan €70.30 45% South Korea €65.80 (-13%) South Africa €65.50 24% Germany €62.10 22% Brazil €44.80 56% UAE €41.90 29% Source: Scotch Whiskey association SWAWednesday, February 22, 2012 16
  17. 17. ( Scotch Whisky ProcessWednesday, February 22, 2012 ) 17
  18. 18. ( Steps to Making Whisky ⊛ Malting ) ⊛ Kilning ⊛ Grinding ⊛ Wort ⊛ Yeasting ⊛ Distillation ⊛ Condensing ⊛ BottlingWednesday, February 22, 2012 18
  19. 19. ( Scotch Regions ) Source: The Drinks International Report, 2011Wednesday, February 22, 2012 19
  20. 20. ( My Whisky Cellar ) ⊛ Age ⊛ Small Batches ⊛ Organic ⊛ Best Comeback ⊛ Old FaithfulWednesday, February 22, 2012 20
  21. 21. ( The Scotch Whiskey Cluster Cluster Competitiveness ✣ Diamond Analysis )Wednesday, February 22, 2012 21
  22. 22. ( ) “Geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions (for example, universities, standards agencies, and trade associations) in particular fields that compete but also co- operate” (Porter).Wednesday, February 22, 2012 22
  23. 23. ( Scotch Cluster Diamond )Wednesday, February 22, 2012 23
  24. 24. ( The Scotch Whiskey Cluster International Competition ✣ Challenges for Growth ✣ Strategic Recommendations )Wednesday, February 22, 2012 24
  25. 25. ( International Competition ) There was a reduced demand for cheaper products due to economic downturn, within the spirits market.Wednesday, February 22, 2012 25
  26. 26. ( International Competition Vodka and cognac are the best performers in sales ) within the premium spirit market. Source: The Drinks International Report, 2011Wednesday, February 22, 2012 26
  27. 27. ( International Competition : India ) Whisky is the fastest growing spirit in India. Source: The Drinks International Report, 2011Wednesday, February 22, 2012 27
  28. 28. ( National Challenges ) ⊛ Poor Performance in UK market ⊛ Increased competition from other spirits ⊛ Trade barriers ⊛ Legal protection ⊛ Social responsibility issues ⊛ Minimum pricing ⊛ High Taxation ⊛ Foreign ownership ⊛ Movement of bottling operations overseasWednesday, February 22, 2012 28
  29. 29. ( Most Important Challenge? High Taxation ) Approximate amount of duty on a normal measure of three kinds of alcoholic drink, each containing approximately the same amount of alcohol ABV 2008 2009 2010 284 ml Beer 3.52% £16.14 £16.46 £17.31 125 ml Table Vine 12.50%£15.54 £17.12 £18 25 ml Scotch Whisky 40.00%£21.35 £22.64 £23.8Wednesday, February 22, 2012 29
  30. 30. ( Strategy & Recommendations ) KEY CHALLENGES RECOMMENDATIONS Align the price of whisky with the strategy Increased competition of the cluster, and reduce price to prevent from other spirits the increase in market share of other spirits (especially vodka and other whisky types). Related parties will lobby international activities and improve regulations to Trade barriers eliminate discrimination through trade barriers. UK Government apply a fair and High Taxation responsible taxing schema for all alcoholic drinks as per their alcohol content.Wednesday, February 22, 2012 30
  31. 31. ( Thank you! Go raibh maith agat! )Wednesday, February 22, 2012 31

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