SABMiller: Strategic Action Over the Years.

The third task is to explain the implications of its current strategic position for the future of SABMiller. Finally, the paper will recommend the strategies that South African Breweries (and SABMiller) should follow in the coming years.

South African Breweries was started in 1895 mainly to cater to the growing mining population in Johannesburg, which is now South Africa. Throughout the existence of the company, it has recorded consistent growth through entry into new markets and acquisitions. The company could also survive the turbulent period of the two World Wars and the eventual abolition of apartheid. In 1962, the company found a new domestic market segment when the government lifted a long-lasting prohibition of alcohol consumption by blacks. The company had also entered into other diverse fields such as safety matches, glass making, hospitality, gaming, and textiles. The company also followed its strategic plans by rapidly expanding into Eastern Europe and other developing economies in Asia like China and India. It has a presence in markets located in Africa, Asia, Latin America, North America, and Europe. SABMiller has more than 200 types or brands of beer and employees nearly 60,000 by the parent company alone. Its breakup of revenue according to markets and type of business is given below.

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Competitive Strategy: According to the famous management theorist and author, Michael Porter every large organization will have two sets of strategies. One is for expansion of its business referred to as competitive strategy and the other for the survival and growth of the organization as a whole referred to as corporate strategy. (Porter 1998, 117).

Competitive strategy is easy to conceive in the mind but difficult to define, because of the sheer diversity in different forms of businesses, markets and the type of leadership or&nbsp.managerial behavior. According to one perception, an effective competitive strategy should have the following components namely, excellence in operations, product leadership, and intimacy or closeness with customers.&nbsp.

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