Sab Miller

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{text:bookmark-start} INTRODUCTION: {text:bookmark-end} It is important for organizations operating and competing at global level to understand how it fits into the external environment that it operates in. The twenty first century has witnessed frequent fluctuations in these international environment in which businesses operate which in turn has encouraged these businesses to concentrate heavily on strategising the manner in which the company survives, grows, competes and achieves its goals. The top management of these organizations take decisions with an ultimate holistic goal of achieving a sustained competitive advantage and in order to achieve this they have been focussing on managing their internal resources and competencies to reap profits from the opportunities created by the external environment (Barney, 1991). Hence it is clear that the international organizations require a strong strategy in place for it to help achieve and sustain this competitive advantage in the long run. This report deals with identifying the strategic issues and options available to South African Breweries (SAB) based on the understanding from the case study “SABMiller” (Johnson et al., 2008, pg. 740-745). After a brief introduction to what strategy means for organizations, the report tries to explain the current strategic position of SABMiller by analysis of the organization’s competencies internally and also the external industry and environmental structure, followed by this the report will discuss the implications of this current position for the future. Finally the report will conclude highlighting the importance of strategic management to SABMiller. Firstly it is very essential to understand what strategy means. Johnson et al. (2008) explains it as ‘...direction and scope of an organization over a long term...’ (Johnson et al., 2008, pg. 3) that involves planning in management of its resources and competencies to exploit the fluctuating external environment which would result in it reaching its goals. Strategic management involves taking highly complex decisions that are based on careful reading of the environments and predictions of the future changes in them. There are always choices in strategies available for the decision makers to implement, thus it becomes essential for the strategy planners to evaluate these options by analysing all the related factors through the use of certain basic tools and frameworks. This report in the next section will analyse the strategic position of SABMiller through the use of certain tools. {text:bookmark-start} ANALYSIS OF CURRENT STRATEGIC POSITION OF SABMILLER: {text:bookmark-end} The case study “SABMiller” (Johnson et al., 2008, pg. 740-745) reveals that SABMiller has been successful at a global level because of implementing right strategies at the right instant of time during its existence. It grew by exploiting its strengths of having the expertise in running strong businesses in developing markets gained from its experiences in Africa. SABMiller have been focussing on ‘four strategic priorities’ (Johnson et al., 2008, pg. 740) first, developing their business globally by entering the new emerging markets all around the globe, secondly to have a optimum range of brand portfolio in suitable markets, thirdly to improve the performance of each business unit under the organization and finally to use all the knowledge gained from various businesses around the world to be shared between each other for mutual support to achieve growth at global level. To analyse the present strategic position of SABMiller this report will first analyse both internal and external environment of the organization through a general global perspective by using SWOT and PESTLE framework. Next the report will analyse the strategies employed by SABMiller in its different markets around the globe through tools like Ansoff Matrix, Boston Consulting Group’s (BCG) Matrix and...
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