Analysis of macro and micro business environment, stakeholder expectations, core competencies and capabilities by using PESTEL, SWOT and Porter’s Five Forces analysis have been conducted to identify the Strategic position of SABMiller.
PESTLE Approach
This analysis seeks to identify the macro-environment factors that could affect firms in a specific industry. These external factors commonly are not controlled by the companies, and represent potential threats. Thereby, by detecting this potential source of issues an organization can either take advantages of opportunities or design contingencies plans to avoid or minimize potential threat (Aguilar in 1937).
Politics
South African Breweries (SAB) business was developed on …show more content…
This has allowed the company to successfully expand globally and directly connect with each market. In addition, they have used alternative partnerships through production license, which give to them plenty right to brewer iconic brand such as Guinness, Amstel and Carling Black Label locally, as its portfolio strategy to remain competitive.
SWOT Analysis
SAB Miller as a major player is facing a number of threats and internal weaknesses that could change its competitive position at internal and external perspectives. In order to put this a framework, a SWOT Analysis is an appropriate tool:
Strength:
• Grew on the basis of emerging markets in which cost effeciency and performance were key succuess factors in which SABMiller could be successful with these acquisitions was through: ‘operational improvement and efficiencies – to distribute beer more effi ciently and drive down costs
• Leverage the global scale and the nature of decentrlisation to deal with each market as a stand alone in terms of strategic planning and exuction management
• Strong brand portfolio resulting in strong purchasing and suppling …show more content…
The knowledge gained is a core competence that caters for the requirements of a potentially successful and sustainable acquisition. Furthermore, this has became even more critical when considering the slow growth rates in developed markets due to almost saturation. Thus SABMiller can further expand its currency and geographic risk. However, the group needs to be proactive, consider the advantages of the first movement position and capture the markets before their competitors, such as Heineken in Africa and Carlsberg in Russia, do