ASSIGNMENT QUESTIONS

1. Describe the major strategies San Miguel Corporation has implemented over the past few years.

 San Miguel Corporation is a leading conglomerate active in multiple industries. SMC has
implemented various strategies to strengthen their competitive edge. This includes expanding
their presence and production in key markets, introducing innovative products, and investing in
more effective technology to improve efficiency. Additionally, they have expanded their
partnerships with national and international businesses, built a center for technology and
sustainability, and included energy-saving procedures into their production operations. Finally, a
global talent management system and employee-friendly programs have been implemented to
promote workforce engagement and productivity.

San Miguel Corporation. (2023). Corporate. https://www.sanmiguel.com.ph/page/corporate.

2. What recommendation do you have for Ramon Ang?

Would you recommend a strategy of regional expansion using existing products? Would you
recommend a strategy of local expansion into unrelated products?

 We would recommend a strategy of regional expansion for San Miguel Corporation using
existing products. This could involve targeting new markets outside their current geographical
area, increasing brand awareness and potentially leveraging emerging technologies in their
current markets to increase sales. By doing this, SMC will be able to leverage market share,
access unexplored markets, and boost profitability.
 San Miguel Corporation's decision to diversify into unrelated items may be a risky move since it
is possible that the company lacks the level of knowledge and experience required to operate
successfully in the new industry. It might be more advantageous to concentrate on current
business operations, look for ways to increase market share, or buy businesses that already exist
in complementary industries to San Miguel Corporation.

3. How does the contextual environment (external and internal) of San Miguel influence your strategy
recommendation?

 Our recommended strategy for San Miguel Corporation's regional expansion is focused on
leveraging existing products across existing markets, while taking into account the existing
internal and external environment of San Miguel. This may involve conducting market research,
expanding through strategic partnerships and strategic alliances, expanding through e-
commerce and social media, and increasing focus on marketing. Taking into consideration the
current market conditions, financial resources, business networks, and product capabilities of
San Miguel would be essential to achieving effective regional expansion.
4. What are the main risks or challenges to your recommendation? What action will you take to
mitigate these risks and challenges?

 Expanding a business internationally presents risks and challenges such as unfamiliar cultural
norms, diverse regulatory and legal environments, language barriers, and different currencies
and taxes. Additionally, supply chain requirements, financial stability and consumer demand
also need to be considered. These risks and challenges can all be overcome with careful
planning, research and a strong strategy. By considering these factors, a business will have
increased reach, more potential customers, and the opportunity to build their brand in a new
market.

QuickBooks (2017). Overcoming 5 top challenges of international expansion.

https://quickbooks.intuit.com/r/growing-a-business/overcoming-5-top-challenges-of-international-
expansion/

5. Is the current strategy of San Miguel the best corporate strategy for long term profitability? Explain
your answer.

 San Miguel Corporation's current strategy is to focus on creating integrated, diversified

operations that span multiple industries and geographies. The company is investing in expanding
its food, beverage, and packaging businesses, as well as developing new businesses, such as
power generation, infrastructure, and health care. This strategy is aimed at long- term growth
and profitability, allowing San Miguel to capitalize on multiple markets and opportunities. While
the long-term effects of this approach may be beneficial, it is important to monitor how the
strategy is implemented and how it is affecting the company's profitability.

San Miguel Corporation. (2023). Our Strategy. https://www.sanmiguel.com.ph/page/strategy.