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SABMiller - Essay Example

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SABMiller is one of the largest brewing companies in the world that since it was founded has seen quite a lot of success all over the world. In fact, this company is rated as the second largest brewing company in the world, with operations running in about 75 countries. …
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Download file to see previous pages While the company itself is in those who consume its products do not know many instances, its brands are quite popular among the consumers. In many of the African nations, in which it has businesses, the brands under SABMiller are often the most popular. SABMiller is a company that has throughout its history, displayed a high capacity for being able to manage and develop its brands to a high quality level that many of its rivals have rarely been able to match. This skilful management of its brands in different countries has enabled the company to become highly successful, as those who work for it receive a high level of training to ensure that the quality of its products is retained. The wide range of products that this company produces means that it has to hire and maintain a large workforce in order to be able to function effectively. Unlike other companies, SABMiller has since its founding, been extremely careful with the management of its staff, not only because of the need to make profit continuously, but also to further the good reputation that the company has always had. Because of the skill that SABMiller has been able to display in the production of its products in diverse countries, it has been able to achieve success on the international scene where other companies take years to achieve the same. One would claim that SABMiller’s success is based not only on the quality of the company’s products, but also on the strategies that it has been able to implement to make its operations successful. This company was founded as South African Breweries towards the end of the 19th century in South Africa, and for many years afterwards, the functions of this company were restricted to Southern Africa. This is because of the fact that this company had established an overriding position in the southern African market. However, in 1990 this company decided to venture into the European market, and in 1999, it managed to get listed in the London Stock Exchange, with the intention of raising enough capital to make acquisitions. It is in 2002 that the company was able to acquire Miller Brewing Company in North America, and with this acquisition, the company chose to change its name to SABMiller (Hobday, 2002). A series of hostile takeovers in Latin America and Europe saw the swift growth of the company, and this eventually brought it to its status as the second largest brewer in the world (Bruss 2002, p.10). The company’s innovation has ensured that it has remained at the top of the world’s brewing industry and an example that can be given of this innovation, is the recent introduction of Impala Cervejas, the first cassava beer that has been produced for commercial purposes in Africa (Appropriate Technology 2012, p.23). This company has about 70000 employees all over the world and its operations have, according to its 2012 records, it managed to bring in revenue of just over 21 billion dollars (Buck 2012, p.49). In Africa, the activities of SABMiller are conducted in 15 countries, all of which are in the Sub-Saharan region. This company has been dominant in the region for many years and because of this, its brands are well known by the people. The large customer base of SABMiller’s products has ensured that the company has been successful in the region and has creates a loyal market for its products (Peaple, 2012). A further 21 countries in Africa are enclosed all the way through a strategic alliance with the Castel group which has ensured that SABMiller has become the largest brewer in Africa, by market share, a feat that has not been achieved by any other brewing company on the continent. In addition to the brewing activities of SABMiller in Africa, it is under license from Coca-Cola to bottle soft drinks on behalf of the latter ...Download file to see next pagesRead More
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