3.1 the Strategic Position Is Concerned with Identifying the Impact on Strategy of the External Environment, an Organization’s Strategic Capability (Resource and Competent) and the Expectations and Influence of

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3.1 The strategic position is concerned with identifying the impact on strategy of the external environment, an organization’s strategic capability (resource and competent) and the expectations and influence of stakeholders. (Johnson & schools & Whittington, 2008) The strategic position that SABMiller has chosen to follow is to continue to protect and further develop its operations, whilst investing for growth in its international beer business, several acquisitions in last few years have given them a wide geographical spread which allows them to capture new growth in developing markets and value growth as consumers around the world trade up from economy to mainstream and premium brands SABMiller’s current strategic position has…show more content…
Therefore it is crucial to evaluate environmental opportunities in relation to the organizations strengths and weaknesses in terms of resources, culture and the environment in which it operates. External analysis In order, to formulate an analysis of the external environment in which SABMiller is operating, an evaluation will be made in terms of industrial and competitive context. Both, the competitive context and the macro environment factors of the company can be evaluated by using the PESTEL analysis. Although the factors which are most identified from the case are political, economic and social factors. Furthermore, The SABMiller competitive position could be considered in near monopoly that has been achieved due to competitive advantages SABMiller has, these competitive advantages mainly are: economies of scale, low prices, and efficient distribution. Potter’s 5 forces Potter’s 5 forces framework is used to decide the intensity of competition within an industry. The five forces are Entry, Rivalry, Substitutes, Buyers and Suppliers. In analyzing each market force, the question is whether it is sufficiently strong to reduce or eliminate industry profits. (Collis & Montgomery 2005) Limitations: 1. It assumes relatively static market structures. 2. Inability to take into account new business models and the newfound dynamism of the industries. Ansoff Matrix Developed by Ansoff(1965), Ansoff Matrix helps to decide their product

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