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Strategic Management - Essay Example

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Name: Student No.: Course: Module code: BHS0027 Word Count: 2451 Title: Strategic Management Introduction: SABMiller is known to be one of the leading brewers in the world. There are more than 200 beer brands of this company. The company operates in around 75 countries with around 70,000 employees working across the world for the company’s production and delivery of not only beers but also soft drinks…
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Strategic Management
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Download file to see previous pages Some of the local brands are also considered by the company that includes Aguila, Castle, Snow, Victoria Bitter, Miller Lite, and Tyskie. The company has been successful in creating its position in both the emerging as well as developed markets across the globe (Overview, 2012). The present study has been considered to make an environmental analysis of SABMiller. Environmental analysis involves identification of the environmental factors that can affect a company, and hence their nature and impact on the level of success of the company. Depending on such factors, if identified, a company would be able to consider measures accordingly such that any negative impact may be prevented. SWOT analysis, PESTEL analysis, application of Porter’s Five Forces are some of ways through which environmental analysis of a business can be done (Business Environment Analysis, n.d.) and these will be applied in the present study to have an understanding on SABMiller company. Position of SABMiller: SABMiller is older than the state of South Africa itself and has faced several challenges in determining the position that it currently holds. There were several business restrictions that SAB had to fight by ruling over the production of beer along with acquisitioning competitor companies and enhancing the facilities of production and distribution. The large brewing companies accounted for 17 percent of the market in the early period of the 1990s. However, by the year 2009, these companies have started accounting for around 45 percent of the market that reflects on the increasing competition. SABMiller has thus since 2010 considered strategizing more focusing in the impacts of the environmental factors (Johnson, 2010, pp.643-644). SABMiller’s operations in the present day may be represented through the following chart: Figure 1: Summary Scope of SABMiller Operation Today (Moulaeifar, 2009, p.2). SWOT Analysis: SABMiller: SWOT analysis is a technique that enables an understanding on the strengths, weaknesses, opportunities and threats of a business organization thereby allowing the business to consider measures accordingly for the benefits and success of the company. However, this technique makes the strategic planning of the business highly formal (Jacob, 2009, p.9). From the case study and other readings, the strengths, weaknesses, opportunities and threats of the company could be learnt. The strengths of the company are reflected through its operations that are spread across the globe, and taking advantages of locations like India, China, Vietnam, and African markets. The worldwide knowledge of the company is good in terms of entering new markets creating its presence. The market dominance of the company being the second largest brewer too adds to its strengths. In terms of value addition, cost leadership, economies of scale and efficient distribution, the company has a competitive advantage over other brewers. Also the company has a strong presence in the US (Johnson, 2010; Moulaeifar, 2009, p.5). The company’s weaknesses include lack of assets in Western Europe that limits the company’s operations in the region. Moreover SABMiller does not have any assets in the markets where there could be major growth for the company. Thirdly, the income level of individuals largely determines the level of ...Download file to see next pagesRead More
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