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Sab Miller Corporate Strategy

Corporate Strategy SAB Miller

Assignment by Matthew Jackson
Table of Contents:
Page
1. Assignment Cover Sheet 3
2. Question 1 4
3. Question 2 5 - 8
4. Question 3 9 - 11
5. Question 4 12
6. Question 5 13 - 16
7. Bibliography 17
Surname: Jackson
First Names: Matthew William

Subject: Corporate Strategy

Date Submitted: 2008.05.05

I hereby declare that the assignment submitted is an original piece of work produced by myself.

Matthew Jackson
7512235009088 2008.05.05
Question 1:
Critically analyze SAB’s Globalization Strategy in the food and beverage industry.
Support your presentation with relevant theories and/or models.
Introduction
South African Breweries (SAB) is one of South Africa’s largest Multi-National Enterprises (MNE).
From their humble beginnings in 1883 they have grown to a Global Market leader in the food and beverage industry. The success SAB earned has been in part to the core values they have displayed through their business activities. These include:
1. A well managed, competitive strategic domestic business base.
2. Maximum decentralization and development of the separate, independent and individual identities.
3. Striving for consistently high productivity with performance matching risk and return.
From these statements, we will discuss how the concepts of mergers and acquisitions, diversification, coming to grips with the political policy environment, research and development, sound foreign direct investment and a definite corporate code of contact, has helped SAB to truly become a global industry giant.
Globalization Strategy Theoretical concepts
Thompson, Strickland and Gamble (2008) discuss the six strategic options available for entering and competing in foreign markets. They are
1. Maintain a national (one–country) production base and export goods to foreign markets.
2. License foreign firms...