Business Strategy

Topics: Strategic management, Beer, SABMiller Pages: 15 (4157 words) Published: October 3, 2011
1.Define the current strategic Business Model of the organisation.

The following is a basic model and when fleshed will allow one to define the strategic business model for SABMiller. Customer/Market considerations
Financial strategy
Value proposition
Operations strategy
Product strategy

The case study tells us that SAB Miller’s has implemented the “tight/loose” business model. A tight business model is characterised by focussing company efforts on those activities which make them money and who do not get arbitrarily involved in various unnecessary activities. A loose Business model us characterised by an ability on the part of the company to remain flexible enough for it to be able to tweak and change its direction as necessary. 1.1Customer/Market Consideration

SABMiller’s strives to remain flexible and implement changes when necessary. Usually these changes are as a result of customer or market feedback to which the organisation wishes to respond. SAB Miller is exceptionally customer-focussed and make sure make sure that they are close to the customer.  High value is placed on customer feedback and products are differentiated to customer preferences.   1.2Value Proposition

SABMiller is clear about its intention to add value to their products through improved quality, packaging, availability, brands and consumer choice as means of enticing the consumer.

1.3Product Strategy
High value is placed on customer feedback and products are differentiated to customer preferences.   SAB Miller offers a wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, aswell as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.

SAB Miller’s business model represents effective localisation of its product. SAB Miller has never been afraid to experiment with different processes and solutions tailored for the local market. 1.4Financial Strategy

The high quality, reasonably priced products allow SABMiller to reward their shareholders appropriately, generate cash at decent margins and also finance their aggressive capital expenditure programmes. 1.5Operations Strategy

SAB Miller sticks to what they know and constantly leverages its operational expertise. This allows SAB Miller to effectively gauge the condition of the organisation as a whole and the condition of its subsidiaries. SAB Miller has been exceptional in understanding that business is not always rational and that companies face many different internal and external challenges throughout their existence. SAB Miller uses a combination of centralisation and decentralisation.  Head office sets the rules and then empowers the subsidiaries to operate freely. Autonomy on the ground level is encouraged but oversight and control is kept by head office, specifically with regard to company values. Localisation calls for autonomy and entrepreneurship encouraged by SAB Miller by allowing freedom with regard to decision making at regional level. Yet, a hands-on-value driven top management has also secured its success. SABMiller transfers its mission, values and business philosophies to the prospective marker. SAB Miller employs innovation across their business with specific reference to technological advances. This was able to accelerate the turnaround process for TBL as new brew houses built in Dar Es Salaam and Mwanza were fitted out with the latest state-of-the-art, automated PLC systems from Europe. SAB Miller, due to its global network, employs state of the art I.T. infrastructure. In accordance with its tight/loose business model it has designed an I.T. infrastructure that provides comprehensive reporting at the international level, without removing control from regional managers.

SAB Miller focuses on its people. SAB Miller encourages productivity through people. They have respect for the individual and treat their employees as their most important...
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