Case Study about South Africa Breweries Limited (Sab)

 Case Study about South African Breweries Limited Sab Dissertation


Company Background2

Challenge to get the Company3

Policy/ Strategy3

Paradoxes and debates about strategy4

Mintzbergs' Theory4

Approach theory of Wittington6

Organizing procedure and strategic decision making7

Adding Of Value8

Keeping Balance In Worldwide and Locally9

Considering Global Market9

The Global Expansion Issues for SABMiller10



Company Backdrop

South Africa Breweries Limited (SAB) is one of the major global brewers. Is it doesn't supplementary of any South African company SABMiller plc. Right now it has a lot more than 200 brands brewing curiosity and blood flow in 75 countries around the world. SAB has got the leading situation to produce and distribute both equally alcoholic and non-alcoholic refreshments. it's been signed up in 1895 in London as then with momentous earnings and applicable market position it has develop its organization in house sectors as well. SAB was fully designed in 1970 following your shifting of its hq from Birmingham to Johannesburg. Government place high constraint on the development and international business of SAB. By 1955 to the following eight years dark beer production was the highest taxed beverage and SAB was required to respond to competitors' acquisition and production and distribution rationalisation. In 1960 it took above Stellenbosch Farmers' Winery and obtained brewing license in your area for Amstel and Carling, Black Packaging and Guinnes which performed major time for its growth. Within 1979 SAB may capture regarding 99 percent South African market alongside major control over Lesotho, Swaziland and Rhodesia. SAB was your first business in the country which published a non-discriminatory work code in the late 70s. The Big cat Match Organization merged with SAB in 1987. SAB concentrated upon developing 3 mega breweries in the country in 1990 and the invention of joint venture in Zambia, Macia, mozambique and Angola followed inside the following years. The company got dominance over 98 percent of marketplace and confronted a little kept expansion in local organization and attempted to expand throughout the world in 2150. It built its method to central Europe in 1993 with all the acquisition of the largest brewery of Hungary Dreher. In the next year it established operation in Czech Republic, Belgium, Romania, Russian federation and Slovakia. SAB experienced spread small business with Rolling Black Dark beer one of the breweries in United states as well. In that case 2001 that expanded the business in to Central America.

In 2001 SAB experienced production of 77m hectolitres of alcohol and non- alcoholic beverages and dominated while the fifth largest brewer in the world protecting 21 countries. In 1990 the head 1 / 4 moved back to London. In this report i would really like to focus my focus on SABs expansion globally by acquiring the second largest brewery of America; the Burns Brewing Business and having new brand as SABMiller in 2002 and it became the second greatest volume on the globe. Though it is facing a few profit perimeter difficulties in North America mainly because its competitors are reducing down the selling price of dark beer. To keep up with the marketplace over right now there SABMiller must compromise with the margin of profit.

Problem for the business

No fights come the moment SAB confesses that Southern African companies are fully centered by these people. Though completely made several tactically poor judgment while expanding in Hungary and US industry. Among the difficulties SAB experienced were: In 2001 this acquires 54.99 percent desire for breweries in Hunduras and El Rescatador which expense them US$ 500million. Additional it spent a total of US$5. 6 bn when it bought Miller coming from Altria. To expand it is business in Western European countries SAB attained a major business in Italia named Peroni and put in US$ 270 million. In Africa SAB had to encounter problems when ever for low income in Malawi the industry would not appear to be create. Again in Ghana SAB has made it is entrance where there is already very good competition among Guinness and Heineken. In Nigeria governments has imposed restriction about importing...

References: Wheelwright and Christensen, C. M. (2004); Burgelman, L. A. Proper Management of Technology, 4th Edition

Mintzberg, H (2000), the Go up and fall of Strategic Planning, McMillan, 2nd Model

Whittington, L. (1993), Precisely what is Strategy -- and Does this Matter?, Cengage Learning EMEA, 2nd modified Edition, [accessed on November 20, 2010][ accessed on October 20, 2010] [accessed upon November13, 2010][accessed about November 25, 2010][accessed on The fall of 11, 2010] [accessed on Dec 7, 2010]