STRATEGIC PLANNING

Value Creation, Strategic Planning, and IT in a Global Economic Environment



Value Creation, Strategic Planning, and IT in a Global Economic Environment

Miller grew on the basis of its strength in developing markets, first in Africa and then in other parts of world. With its first acquisition in a developed market, Miller in 2002, it has become the second largest brewer by volume in the world and finds itself faced with a new set of challenges. This case study explains the business's development and the strategy of firm; it shows how the strategy has changed with time and provides the opportunity to consider its future at both the corporate and competitive strategy levels"SABMiller case study

II.Strategic position that SAB Miller finds itself in 20042.

Swot Anaylysis overview

The brewing industry has been consolidating to secure brands and national positions. International brewers have also been investing for further growth, particularly in new and developing markets such as China, Latin America and Russia. Industry consolidation would raise the intensity of competition, which could lead to a loss of market share.

A.Strenghts

The company has a presence in more than 60 countries across six continents. SABMiller operates through five geographic regions including; North America, Latin America, Europe, South Africa and Africa and Asia. SABMiller operates in North America through its subsidiary, Miller Brewing Company (Miller), which is the second largest brewer in the US. The company's operation in Latin America consists of six countries including Colombia, El Salvador, Ecuador, Honduras,Similarly, its brewing operations in Europe primarily consist of eight countries including the Czech Republic, Hungary, Italy, Poland, Romania, Russia and Slovakia.

In Asia and Africa, the company operates in around 31 African countries and other Asian countries including China, IndiaThe global scale helps SABMiller, to develop its brands on a global level and provides a valuable platform for distributing and selling its international premium brands Miller Genuine Draft and Pilsner Urquell. It also helps the company to develop regional brands such as Kozel in Europe and Eagle in Africa. In addition, with 200 brands, it is possible for individual businesses to select particular beers from company's global portfolio and introduce them in their own markets as Miller is doing with a number of Latin American brands. The global scale allows SABMiller to share brand innovation. Redd's, for example, originated in South Africa, moved to Poland, where it benefited from further innovation, and is now doing well in Russia.

B.Weakness

Beside of strength that SABMiller obtained in 2004, there was also some weakness that was challenges for company.

The SABMiller was difficult within management skill, with global operation in many countries and many geographic segments; company was difficult to manage effective ways for each culture and region. Managing a large organisation that spans regions and continents, against the backdrop of industry competitiveness, poses many information challenges. Global brewing giant, SABMiller is no exception to the problems created by ensuring accurate and timely data transfer between offices, operations, and employeesOn top of this there are fears, rejected by the company, that new competition laws in ...