STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

Strategic Position of SAB Miller in 2010 and its SWOT Analysis

SAB Miller has done quite well in the year 2010 which was not an easy one as the economic conditions were quite tough and the consumer demand was not even that high. SAB Miller clearly emphasized its four strategic principles that remains a key for them to achieve success in their operations. First principle was creating a balanced and attractive global spread of businesses. Second principle was developing strong, relevant brand portfolios that win in the local market. Third principle was constantly raising the profitability of local businesses, sustainably. Last principle was leveraging our skills and global scale. One of the main reasons because of which SAB Miller was able to achieve success financially was the proper strategy set by the Management in relation to the economic condition they faced in each market. They reduced costs in certain countries and increased prices where it was necessary so the Management knew what exactly needs to be done in each of their international markets. (Allebeck, 2005, pp.23-30)

Therefore, the SWOT analysis of the SAB Miller was prepared with keeping in mind the economic scenario prevailing in the year 2010. The strengths of the company were the sound economic performance which enabled them to perform well in various international markets. Due to strong presence in the international market as one of the major companies in the countries provided them the opportunity to maximize their customer base. The main reason for their strengths is the production setup they are having for their products. They incur high costs to maintain their superior quality among the competitors which enable them to have large amount of customers for their products. So, their strengths certainly remain the quality of products which they offer in the local and international market. Secondly, the other strength is their strong economic performance which they have been maintaining since the last few years. Therefore in the year 2010, SAB miller continued to perform consistently under the tough economic condition that was prevailing around the whole world. The weakness that SAB miller faced especially in 2010 was that they were unable to serve the businesses of both beer and Coca Cola on equal basis. They were doing quite well in the beer industry as the economic figures clearly suggest the strong performance which they experienced in this sector. However, the beverage industry that is Coca-Cola was not doing that well which is a concern for SAB Miller. The reason why they will need to take this issue seriously is because SAB Miller has positioned themselves in the market as a company which has diversifying business units. Therefore, in terms of weaknesses this is the only area which they need to improve in order to strengthen their position in the market. (Cogman, 2002, pp.1-4)

The opportunity which SAB Miller has is the scope in various international markets which they are already trying to ...