To monitor the achievement of company’s mission and vision, the management team needs to study and analyze the environment of company. One of the environment analysis models that company applies is PEST Analysis. PEST is a framework that helps to scan the macro environment in each company. PEST is acronym in term of Political factor, Economic Factor, Social factor and Technology factors. Some writer will separate the Legal factor from political become PESTEL.

Political factor derived from the decision make by government which may affect Carlsberg meeting their mission. Malaysia government has introducing several legislation & regulation to control the alcohol industry. Government introduces license system with different types of licenses in alcohol industry. For example, some licensee can only sale beer and wine, while other licensee allow to sale hard liquor. Government enforced restaurant who want to sale alcohol to apply alcohol license, and involve the restaurant liquor licenses into the business plan as a business start up cost. Other than that, Malaysia government also presents 26 types of different rates of taxes for alcoholic beverages. In Malaysia, duties tax and excise tax on beer is now RM7.40 per litre, second highest duties tax for alcoholic drinks in the world, while 20 per cent sales tax will levies by government. From 2013 budget report, Malaysia alcohol and Tobacco tax remain at the same rate, for example RM7.40 per litre.

Due to high alcoholic tax and to avoid paying any additional import charges this may indirectly encourage some of its competitors from niche market to smuggling beer or wine from surrounding countries and sale to its consumer at lower price compare Carlsberg. This may affect the revenue of CBMB and thus its profit margin. In addition, government also restricted alcohol advertisement over the broadcast media and on billboards but company sponsoring music and charity event to increase company visibility.