TRIXIE ANN L.

MANZANO
BSHM2-C

IV. APPLICATION/ACTIVITY
ACTIVITY 1: Local Becoming Global
Instructions: Choose one Filipino global corporation. In an essay, discuss its history, worldwide reach, and attributes
as a global corporation.
Southeast Asia's first brewery was founded by the San Miguel Corporation, a multinational company with
Philippine citizenship. Formerly known as "La Fabrica de Cerveza de San Miguel," the company began making beer
in the center of Manila in 1890. The King of Spain then granted La Fabrica de Cerveza de San Miguel permission to
make beer in the Philippines. San Miguel Corporation entered the global market in 1914 by selling beer to Guam,
Shanghai, and Hong Kong. It constructed its first brewery ever in Hong Kong around 1948. It developed become a
symbol among beer drinkers throughout time, not just in the Philippines but across Southeast Asia.

In 1963, La Fabrica de Cerveza de San Miguel was renamed to "San Miguel Corporation (SMC)" following
its expansion from beverage into food and packaging businesses. Later on, it transformed into a business
conglomerate engaging into fuel and oil, energy and mining, infrastructure, and investments in other businesses such
as property development and leasing, cement, car distributorship, and banking services. SMC has elevated itself to
the top of the Beer, spirits, non-alcoholic beverages, poultry, animal feed, flour, fresh and processed meats, dairy
goods, coffee, various packaging materials, and a wide spectrum of refined petroleum products are just a few of the
products the Philippines produces. SMC also supports a network of hundreds of independent suppliers and makes
additional contributions to downstream sectors. San Miguel Food and Beverage, Inc., which is made up of San
Miguel Brewery Inc., Ginebra San Miguel Inc., and San Miguel Foods, is in charge of managing SMC's food and
beverage. It enjoys market-leading positions in the food, beer, and beverage industries classifications for spirits, San
Miguel Pale Pilsen, San Mig Light, and Red Horse are among the beers in its lineup. Ginebra San Miguel and Vino
Kulafu are Chinese wines.
Petron Corporation, the largest integrated oil refining and marketing firm in the Philippines and a significant
player in the Malaysian downstream oil industry, is the parent company of SMC's fuel and oil. Petron manufactures
premium fuel and Petrochemicals serve Malaysians and Filipinos. Petroleum goods such as kerosene, jet fuel,
diesel, LPG, and petrochemicals are part of its range. It also collaborated with restaurant franchises for one-stop
comprehensive service experience. SMC Global Power Holdings Corp. and its affiliates, joint ventures, and
subsidiaries make up SMC's power subsidiaries. With a portfolio that includes natural gas, coal, and renewable
energy sources including hydroelectric electricity and more recently battery energy storage technologies, it is one of
the biggest power corporations in the Philippines. SMC's operations extend beyond the Philippines as it has
presence and more than a hundred facilities in South East Asia (Indonesia, Vietnam, Thailand, and Malaysia), China
and Hong Kong, Australia and New Zealand. It further forged partnerships with major international companies such
as Kirin Brewery Co., Ltd., Nihon Yamamura Glass, U.S based Hormel Foods Corporation, and Korea Water
Resources Corporation, to get access and improve managerial expertise, international practices and advanced
technologies
SMC’s attributes include but are not limited to the following: (1) it is always committed in enhancing its
business value by strengthening the brand and improving market visibility in areas with potential market growth; (2)
it always aims to diversify into industries that underpin the development and growth of the Philippine economy; (3) its
continuing goal is to identify and pursue synergies across businesses through vertical integration, platform matching
and channel management. SMC's global presence was a product of its efforts in building a broader distribution
network of its products and expanding customers by forging connections with various international businesses; (4) its
intention to further enhance its market position in the Philippines by investing in and developing businesses with
market leading positions. SMC believes that their strong domestic market position provides an effective platform to
develop markets for an expanding product availability and distribution. As such, it has been its goal to continue
investing in and developing businesses that have the potential to gain leading positions in the markets and industries.
(5) it adopted world-leading practices and joint-development of businesses.