Case Study on South African Breweries Ltd (Sab)
Contents
Company Background 2 Challenge for the Company 3 Policy/ Strategy 3 Paradoxes and debates around strategy 4 Mintzbergs’ Theory 4 Strategy theory of Wittington 6 Planning procedure and strategic decision making 7 Adding Of Value 8 Keeping Balance In Globally and Locally 9 Considering Global Market 9 The Global Expansion Challenges for SABMiller 10 Conclusion 11 References 12
Company Background
South African Breweries Ltd (SAB) is one of the major global brewers. It is the supplementary of a South African company SABMiller plc. Now it has more than 200 brands brewing interest and circulation in 75 countries worldwide. SAB has the leading position to produce and distribute both alcoholic and non-alcoholic beverages. it’s been registered in 1895 in London and since then with momentous profit and prevailing market position it has develop its business in home sectors as well. SAB was fully incorporated in 1970 after the shifting of its head office from London to Johannesburg. Government put high restriction on the expansion and international business of SAB. From 1955 to the following seven years beer production was the highest taxed beverage and SAB had to respond to competitors’ acquisition and production and distribution rationalisation. In 1960 it took over Stellenbosch Farmers’ Winery and obtained brewing license locally for Amstel and Carling, Black Label and Guinnes which played major turn of its expansion. Within 1979 SAB could capture about 99 percent South African market alongside major control over Lesotho, Swaziland and Rhodesia. SAB was the first organisation in the country which published a non-discriminatory employment code in 1978. The Lion Match Company merged with SAB in 1987. SAB concentrated on developing three mega breweries in the country in 1990 and the invention of joint venture in Zambia, Mozambique and Angola followed in the following years.
The company got dominance over 98 percent of market and faced
Company Background 2 Challenge for the Company 3 Policy/ Strategy 3 Paradoxes and debates around strategy 4 Mintzbergs’ Theory 4 Strategy theory of Wittington 6 Planning procedure and strategic decision making 7 Adding Of Value 8 Keeping Balance In Globally and Locally 9 Considering Global Market 9 The Global Expansion Challenges for SABMiller 10 Conclusion 11 References 12
Company Background
South African Breweries Ltd (SAB) is one of the major global brewers. It is the supplementary of a South African company SABMiller plc. Now it has more than 200 brands brewing interest and circulation in 75 countries worldwide. SAB has the leading position to produce and distribute both alcoholic and non-alcoholic beverages. it’s been registered in 1895 in London and since then with momentous profit and prevailing market position it has develop its business in home sectors as well. SAB was fully incorporated in 1970 after the shifting of its head office from London to Johannesburg. Government put high restriction on the expansion and international business of SAB. From 1955 to the following seven years beer production was the highest taxed beverage and SAB had to respond to competitors’ acquisition and production and distribution rationalisation. In 1960 it took over Stellenbosch Farmers’ Winery and obtained brewing license locally for Amstel and Carling, Black Label and Guinnes which played major turn of its expansion. Within 1979 SAB could capture about 99 percent South African market alongside major control over Lesotho, Swaziland and Rhodesia. SAB was the first organisation in the country which published a non-discriminatory employment code in 1978. The Lion Match Company merged with SAB in 1987. SAB concentrated on developing three mega breweries in the country in 1990 and the invention of joint venture in Zambia, Mozambique and Angola followed in the following years.
The company got dominance over 98 percent of market and faced
References: Wheelwright and Christensen,C.M.(2004); Burgelman,R.A. Strategic Management of Technology , 4th Edition Mintzberg, H (2000), the Rise and fall of Strategic Planning, McMillan, 2nd Edition Whittington, R. (1993), What is Strategy - and Does it Matter?, Cengage Learning EMEA, 2nd revised Edition, http://www.developtechnology.co.za/index.php?option=com_content&task=view&id=14675&Itemid=101 [accessed on November 20, 2010] http://www.sablimited.co.za/sablimited/content/en/[ accessed on October 20, 2010] http://tutor2u.net/business/strategy/what_is_strategy.htm [accessed on November13, 2010] http://www.strategy-implementation.24xls.com/en104[accessed on November 25, 2010] http://theirm.org/events/documents/SABmillerpresentation.pdf[accessed on November 11, 2010] http://www.independent.co.uk/news/business/news/sabmiller-mulls-1637bn-bid-for-fosters-lager-2059473.html [accessed on December 7, 2010]