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SABMiller's Strategic Position by 2011 - Essay Example

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This write up is an analytical paper focusing on the SABMiller's corporation and its Strategic Position. The principal focus is on its present strengths and weaknesses as well as its future strategies in the backdrop of the recent recession…
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SABMillers Strategic Position by 2011
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Download file to see previous pages According to the research findings SABMiller is a globally renowned corporation that endears itself as an excellent beer producer and renowned bottler for handful corporations with a global spread. The prime dealing of the organization is the production of beer, malts and an assortment of soft drinks, in particular, the carbonated archetypes. The company is reputable for a number of varied global brands that include Urquell, Peroni Nastro Azzuro, Miller genuine draft and an equally enormous base of local brands that serve its dissimilar macro and micro marketplaces spread across the globe. These localized brands include Miller Lite, Aguila, Tyskie and snow. Overall, the organization claims patent of over 200 dissimilar alcoholic brands. With headquarters in London, the corporation claims presence in all sections of the globe. This massive marketplace is steered by a global staff of 70000 professionals spread across its key five worldwide sections. The sections are regionally lumped constituting critical administrative units for their extensive supply chain. These sections include South Africa, Africa and Asia, Europe, North America and Latin America. From SABMiller, it is evident that the organization has endeavored to achieve sustainable advancements through its evident ambitions for accelerated growth while keeping in line with both the global and internal manufacturing standards. Its ambitious expansion efforts are evident in its 2002 acquisition of the American Miller brewing corporation as well as its recent accelerated expansion agendas. According to SABMiller 2011, it recently acquired a lucrative bottling deal with coca cola as well as the reported takeover of the Australian's Foster's brewing corporation. These are evidence of its ambitious expansion programs that has seen it raise to the second global leading beer manufacturer. Obviously, this beer manufacturer has employed key strategies that has responsibly sailed it through the past riskier yet increasingly lucrative outlays. Additionally, a critical examination reveals that its key value of owning its own expansion strategies is responsible for the enormous expansions of the preceding decade. Additionally, its ownership of a critical value chain component in the form of brand is central for its extensive success. a. PESTEL Analysis Politically, the organization has increasingly faced a number of drawbacks in regards its key area of specialty. Johnson, Whittington & Scholes (2011) observe that, over the past year, numerous nations have instituted regulations that stringently direct alcohol utilization. Observably, the state control is the result of the recent examinations of the physiological and psychological consequences of alcohol consumption which revealed repugnant results. Similarly, despite the huge market inherited in the Miller deal, the American market remains among the stringently proscribed alcohol marketplace. Economically, the organization's rapid expansions have seen it embrace marketplaces with huge dissimilar economic constructs. According to Johnson, Whittington & Scholes (2011), the Miller deal attracted huge costs in comparison to other division across the Africa and Asian sections. SABMiller (2011) is cognizant of the regular alcoholic drink policy issuance across its subsidiaries to enforce its social responsibility of enlightening on responsible alcoholic consumption. Similarly, the report is observant of their involvement with HIV campaigns across the globe to assist the on going efforts in curbing the predicament. Additionally, SABMiller has persistently contributed to the global technological enhancements through introduction of novel manufacturing procedures as well as newer brands of produce. Johnson, ...Download file to see next pagesRead More
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