LONGITUDINAL STUDY

Longitudinal Strategic Development Study

[Institution Name]Longitudinal Strategic Development Study

Introduction

The longitudinal strategic development study of SABMiller plc will be the focus of our paper. The strategies that the company has developed and implemented in the recent past and current situations will allow us to develop strategies for the business to grow and excel in the future. All these aspects are well and defined in the content of the paper, giving a fair understanding of strategic management concepts of business.

A growth strategy that the company can use follows basic patterns. The choice of one strategy or another depends on the capabilities available at the time also the willingness of the company to take risks for shareholders. If the development of business activity in a market has been successful, the first strategies that are held are for horizontal growth, for example, develop new business within the structures of product / existing market.

In today's world to acquire wealth and status owning your own business is as the latest fashion. We see a lot of new businesses launching each month, and year but only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it and strategies are the nub that decides the success or failure of an organization. The basic objective of this paper is to analyze an organization its current position and future prospects.

Overview and History of the Company

SABMiller Company was founded in 2002 with the merger of South African Breweries (SAB) and Miller Brewing. They are the second-largest beer producer in the world, whose products are represented by 150 brands on five continents (Allison and Kaye, 1997, pp. 87).

The history of SAB began in 1892 with the purchase of a brewery in Cape Town, a local brewer, Charles Glass, who developed the recipe the world-famous beer Castle Lager (Brockway, 2007, pp. 32). In 1895, a growing company investing British investors in London registered company SAB (South African Breweries). By the mid of 20th century, the company was actively implementing the licensed production of brands, including such monsters as Guinness and Amstel. Since the 90s the company was vigorously expanding production capacity, and planned to begin construction of factories in Eastern Europe and China (Canales et al., 2000, pp. 65).

Recent Strategic Development History

There can be various issues while implementing the business model proposed above because it is the model that most of the companies are trying to adopt nowadays; therefore, competition will be intense that should be considered. Landmark event for the SAB was in 2002 when SAB bought Miller Brewing, the second brewery in the U.S. after Anheuser-Bush which formed the giant SABMiller (Ewing, 2007, pp. 6). Moreover, to acquire Bavaria, SABMiller Britain had to invest 7.806 million dollars, including the proposed purchase of 28.2 percent of the shares held by minority shareholders, the net debt of Colombian brewer and 3,500 million dollars given to the Santo Domingo family by ...