San Miguel Corporation Company was founded in 1890 and has since grown to

become one of the largest and most successful corporations in the Philippines. San
Miguel Corporation (SMC) is one of the Philippines’ largest and most diversified
conglomerates, with revenues equivalent to about 7.6% of the country’s GDP in
2022.Originally founded in 1890 as a single product brewery in the Philippines, SMC
today owns market-leading businesses and investments in various sectors, including
food and beverage, packaging, energy, fuel and oil, infrastructure, cement, property
and banking services. SMC has a portfolio of companies that is tightly interwoven into
the economic fabric of the Philippines, benefiting from, as well as contributing to the
development and economic progress of the country. Since adopting its business
diversification program in 2007, SMC has channeled its resources into what it believes
are attractive growth sectors, which are aligned with the development and growth of
the Philippine economy. SMC believes that continuing this strategy and pursuing
growth plans within each business will achieve a more diverse mix of sales and
operating income, and better position SMC to access capital, present different growth
opportunities and mitigate the impact of downturns and business cycles.

I. Company Background

a. Strategic Posture:

Mission: San Miguel Corporation's mission is to responsibly and profitably grow its
diverse businesses and create value for its stakeholders through innovation,
operational excellence, and sustainable development.

Vision: San Miguel Corporation aims to be the most admired and preferred company,
creating sustainable growth and value for all stakeholders.

Objectives: The company's objectives include achieving sustainable growth and

profitability, expanding its market presence, developing innovative products and
services, ensuring customer satisfaction, and promoting social and environmental
responsibility.

Policies: San Miguel Corporation follows a set of policies that prioritize ethical business
practices, compliance with laws and regulations, environmental sustainability,
employee well-being, and social responsibility.

II. Internal Environment

San Miguel Corporation possesses substantial resources, capabilities, and
competencies across its key business functions.

Marketing: The company has a strong brand presence and a wide distribution network,
allowing it to effectively market its diverse range of products and reach a large
customer base. San Miguel Corporation invests in marketing campaigns and product
innovation to maintain and expand its market share.

Finance: San Miguel Corporation has a robust financial position, with solid revenue
streams from its various business segments. The company implements sound financial
management practices, including strategic investments, risk management, and cost
control measures.

Operations: San Miguel Corporation operates state-of-the-art manufacturing facilities

and possesses efficient supply chain management capabilities. The company focuses on
continuous improvement, quality control, and operational efficiency to ensure the
timely delivery of products and services to customers.

III. External Environment

a. Porter's Five Forces Analysis:

Supplier power: San Miguel Corporation benefits from a relatively weak supplier
power. The company deals with numerous suppliers and has the ability to switch
between suppliers if needed. Additionally, the availability of raw materials in the
market reduces the supplier's ability to influence price increases.

Buyer power: San Miguel Corporation faces moderate buyer power. While the
company serves a wide range of customers, the presence of substitute products and
low switching costs give buyers some leverage in negotiating prices. However, the
company's strong brand reputation and customer loyalty help mitigate this power to
some extent.

Competitive rivalry: San Miguel Corporation operates in a highly competitive

environment. The manufacturing and distribution sector is characterized by the
presence of numerous competitors offering similar products and services. Intense
rivalry is driven by factors such as the large number of firms, their aggressiveness in the
market, and low switching costs for consumers.