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Sabmiller

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Case 1: SABMiller

Question 1)
What is SAB’s strategic position as at 2007? Your answer should include a discussion of the external environment, SAB’s capabilities and competences and stakeholder expectations.

Answer:
SABMiller business is operating worldwide, not only covered South Africa, they expand the business into Asia, Eastern Europe and Western Countries, moreover, they even entered in developing countries such as Tanzanian, Zambia, Mozambique and Angola All entered market has a steady growth of sales which is determined by market conditions and potential of business.

In South Africa, is the place of origin of SABMiller, this country provide a steady proportion of sales and profits during the early stage of business, unfortunately, it spread of AIDS/HIV during Year of 2001 and caused SABMiller facing the threat of business, it show decline sales start from here. This is negative impact on disposable income of population which will be affected SABMiller’s business. As a conclusion, SABMiller is under threat in South Africa.

In Africa, including Angola, Botswana, Mozambique, Tanzania, Uganda and Zambia, those business are show a significant growth of sales because of clear segmentation strategy and distributor policy, although there is high potential growth of business in these countries, but the political risk is the main issue will be affected the business. Fortunately, they are successful to operates across and get the protection from the domestic government. Besides, there was trade in soft currencies in Botswana, it will increase the risk on business under this condition.

In Asia and Eastern Europe, both of these countries is underdeveloped in beer market, it can provide a major opportunity of SABMiller to growth their business. SABMiller merged with small breweries to enhance the scale of business, moreover, they can take the...

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