SABMiller Marketing Essay

1077 Words5 Pages
1. ANALYSIS OF SABMILLER'S STRATEGIC POSITION 1.1. Introduction SABMiller is an international company with its main interest the brewing of beer. To understand SABMiller's strategic position is to consider their strengths and weaknesses against what is happening in the environment (Robson, 1997, p. 29). Annexure A reflects the prioritisation of the basic process of strategic analysis. 1.2. External factors affecting SABMiller Annexure B contains a P.E.S.T analysis for SABMiller but since environmental factors are country specific it is most effective when performed for all countries of interest. 1.2.1. Political Analysis Governments across the world take extreme measures to regulate alcohol because it affects the…show more content…
130). SABMiller has an aggressive programme to implement production systems across the world with the optimum level of flexibility. SYSPRO 6.0, a fully integrated business software solution providing complete control over the planning and management of all facets of business, forms a critical element of SABMiller's business mode. (SABMiller, 2003, p.19) 1.3. Internal Factors affecting SABMiller The financial performance should be the starting point of an internal analysis. However, " A S.W.O.T analysis (Annexure C) helps the manager focus on a strategy that takes advantage of the firm's opportunities and strengths while avoiding its weaknesses and threats to its success." (Perreault and McCarthy, 1996, p. 594) 1.3.1. Strengths Implementing affirmative action programmes in South Africa from the 1970's gave SABMiller the experience to deal with cross-cultural issues effectively. SABMiller's policy of entering into long-term ventures with its suppliers ensures consistency of supplies. 1.3.2. Weaknesses Large staff numbers need to be controlled and make SABMiller vulnerable for labour action. To keep abreast of technological developments the retrenchment of labour becomes unavoidable. The Food and Allied Workers Union took SABMiller to labour court for alleged racism due to the retrenchment of several hundred employees during the 2002 and 2003 years. 1.3.3. Opportunities Re-establishing consumer confidence in Miller
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