Professional Documents
Culture Documents
Yuanhan Liu
07/26/2009
I. Industry-Describe the industry or industries where the company operates.
San Miguel Corporation is the largest publicly listed food, beverage and
packaging company in the Philippines.It has been in the industry since 1890
being founded by Don Enrique Maria Baretto.Since then,the SMC ensure that its
strategy, organizational structure and processes, and external relationships were
adequate to confront the expected threats and to capitalize on the opportunities
facing it domestically and internationally.
San Miguel Corporation has a sizable international presence. The company has
over 100 facilities in the Philippines, Southeast Asia, China, and Australia. Its
major operating facilities include five breweries, four glass plants, two metal
closure and lithography plants, two plastic case plants, and a coconut oil mill.
San Miguel is one of the Philippines' biggest private employers, with over 25,900
employees.
The company reported a net income of $171 million in 2005. As of the first half of
2006, the company's net income had grown 15 percent from a year earlier to
P4.36 billion
2.2.industry profitability
The company reported a net income of $171 million in 2005. As of the first half of
2006, the company's net income had grown 15 percent from a year earlier to
P4.36 billion
2.3.major players
The major players are Asia Brewery Inc.; Asahi Breweries, Ltd.; Tsingtao
Brewery Company Limited; Foster's Group Limited.
Vision
To be constantly aware of the aspirations of the people and of the nation, and
to ensure that San Miguel continues to make a major contribution towards
the achievement of these aspirations.
To seek and develop export markets for new products as well as for those
already being produced by the Corporation.
Mission
Strengths:
Weaknesses:
Competition was very tough outside, especially from Japan and Taiwan.
SMC would have to meet the standards for a multinational corporation.
Management bench is not deep.
Most managers would resist overseas assignments.
The international operations would divert attention of SMC
The company is not prepared to increase international operations.
External Environment:
1. Economic
Asia has an emerging economy. Asia is widely known provide its cheap labor.
When China and Taiwan were admitted into the WTO in 2002.Beer could
now be compled and expented to the two countries.
The South Korea mostly brewed from rice.Only the Hite’s Max Prime brand
contains 100% barley malt.San miguel beer could into Korean market with
its rice made of harvest.
Although foreign beers are popular within the country, the Thai government
seeks to shelter its domestic breweries through the imposition of import
duties; in addition, all imported beers must bear an import sticker on their
bottle caps. As a result, Thai brewers have struck partnership deals with
western brewers, such as San Miguel Beer.
3. Socio-Cultural
The similar of the cultures around the Asia affect the sales of SMC.
4. Technological
The rapid technological advancement will affect the price of beer.
Opportunities:
Threats:
V. Conclusion
San Miguel Corporation is very particular with its brand.They are not
conscious on developing a new product to compete with the other beverages.
The beer industry, and San Miguel Corporation being the biggest market
shareholder in the Asia.