International Development Strategy

International Development Strategy

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International Development Strategy

Executive Summary

SAB is one of the major beverage and beer companies in the world . In 2001 SAB was the 5th largest brewery in the world and the fastest growing brewery from 1995 to 2000 . In 2002 SAB become and up to now is the 2nd largest brewery in the world by volume with exposure to both developed and developing markets and operates 111 breweries (Bruss 2002

After acquiring 100 of Miller Brewing Company , the second largest

br brewer in the United States of America , from Altria Group , Inc (formerly Philip Morris Companies Inc . Following this acquisition , the group changed its name to SABMiller plc

SAB leads the beer market with Castle lager in South Africa however its wider portfolio included various brands : SAB , SABI Asia , SAB Europe and other beverages interests such as bottling plants , Soft drinks , Juices and Sparkling water . It also runs Southern Sun Hotels Casinos throughout South Africa

Since 1995 SAB has commenced brewing operations in a further 5 African countries , 3 Chinese provinces and 4 eastern European countries . And it intends to continue to protect and further develop its South Africa operations (http /www .sabmiller .com

As mentioned above SAB has implemented many development strategies which led it to being one of the largest breweries in the world , many of these development strategies were implemented successfully , but that doesn 't mean that SAB hadn 't returned back and adjusted some development strategies

Generally , SAB 's international development strategy was based on

Market expansion , which has led the firm from its origins in Africa to become one of the largest brewers in the world

Focusing on countries , which it believes it , could use its expertise which has been gained over 100 years in South Africa to develop beer markets in emerging economies

SABMiller 's international development strategy is to

Drive volume and productivity

Optimise and expand its existing positions through acquisition

Grow its brands in the international premium beer segment

Seek value-adding opportunities to enhance its position as a global brewer (http /www .sabmiller .com

Table 1 . Geographical operating areas of SABMiller plc

Region No . of Breweries

Europe 14 breweries

America 9 breweries

Africa 15 breweries plus 36 commercial sorghum breweries

Asia 7 breweries

The aim of this report is to analyse the extent to which this company has built multidimensional capabilities suitable for global competition It will discuss the company 's points of vulnerability and present recommendations for change . The purpose of this analysis is to outline the current position of SABMiller and the international development strategy followed by it , in the brewing industry . In , to achieve this task an examination will be done regarding the external and internal environment of the company , its development strategic direction , and its development strategy implementation issues

Analysis of Strategic Development Position

The strategic development position that SAB has chosen to follow is to continue to protect and further develop its South African operations whilst investing for growth in...