Strategic Management Essay Example | Topics and Well Written Essays - 2500 words - 1

Strategic Management - Essay ExampleSome of the local brands are overly finded by the company that let ins Aguila, Castle, Snow, Victoria Bitter, Miller Lite, and Tyskie. The company has been successful in creating its position in some(prenominal) the emerging as well as developed markets crosswise the globe (Overview, 2012). The present news report has been considered to straighten out an environmental abridgment of SABMiller. Environmental digest involves identification of the environmental factors that can affect a company, and thus their nature and impact on the level of success of the company. Depending on such factors, if identified, a company would be able to consider measures accordingly such that any negative impact may be prevented. beat analysis, PESTEL analysis, application of Porters Five Forces are some of ways through which environmental analysis of a business can be done (Business Environment Analysis, n.d.) and these will be applied in the present study to h ave an understanding on SABMiller company. Position of SABMiller SABMiller is older than the state of South Africa itself and has set about several challenges in determining the position that it currently holds. There were several business restrictions that SAB had to fight by ruling over the production of beer along with acquisitioning competitor companies and enhancing the facilities of production and distribution. The large brewing companies accounted for 17 pct of the market in the early period of the 1990s. However, by the year 2009, these companies have started accounting for around 45 percent of the market that reflects on the increasing competition. SABMiller has thus since 2010 considered strategizing more focusing in the impacts of the environmental factors (Johnson, 2010, pp.643-644). SABMillers operations in the present day may be represented through the following chart Figure 1 Summary Scope of SABMiller Operation Today (Moulaeifar, 2009, p.2). SWOT Analysis SABMiller SWOT analysis is a technique that enables an understanding on the strengths, weaknesses, opportunities and threats of a business organization thereby allowing the business to consider measures accordingly for the benefits and success of the company. However, this technique makes the strategic planning of the business highly formal (Jacob, 2009, p.9). From the case study and some other readings, the strengths, weaknesses, opportunities and threats of the company could be learnt. The strengths of the company are reflected through its operations that are spread across the globe, and taking advantages of locations like India, China, Vietnam, and African markets. The worldwide knowledge of the company is good in term of incoming new markets creating its presence. The market dominance of the company being the second largest brewer too adds to its strengths. In terms of value addition, cost leadership, economies of scale and efficient distribution, the company has a competitive advanta ge over other brewers. Also the company has a strong presence in the US (Johnson, 2010 Moulaeifar, 2009, p.5). The companys weaknesses include lack of assets in Western Europe that limits the companys operations in the region. Moreover SABMiller does non have any assets in the markets where there could be major growth for the company. Thirdly, the income level of individuals largely determines the level of