Internal Analysis Analysis Argumentative Essay Example

and growth opportunities. SAB considered three options for international growth development strategy, as outlined by Bartlett, Ghoshal & Birkinshaw (2004): merger with a major developed country brewer, acquisition in emerging markets or continued focus on organic growth in emerging markets. SAB chose to pursue the merger development strategy which led to its acquisition of 100% of Miller Brewing through an agreement with Phillip Morris Company Inc. This resulted in a name change to SABMiller and made them the second largest brewer in the world by volume with over 69000 employees. The merger has also given SAB access to the most important market for the brewing industry, the US.

According to http://www.sabmiller.com, the transaction has been greatly advantageous for SABMiller, particularly in the long term. To ensure the successful implementation of generic development strategies and prevent any issues, it is important to assess their alignment with both the organizational structure and culture. Additionally, it is essential to evaluate whether the current resources are suitable for implementing these strategies, as previously mentioned.

(McGee, Thomas & Wilson, 2005) state that SAB is a diversified/divisionalised organisation according to Mintzberg's (2003) structural types of configurations. SAB operates in 23 countries within the brewing industry, with Castle beer as its core product and a highly diversified product portfolio.

Assuming that managers are assigned by the headquarters to coordinate dispersed activities across countries and moderate capital investment is made in national and international product divisions to standardize production procedures, it can be inferred that SAB's factories achieve high economies of scale and scope with cost-efficient production procedures. This structure also facilitates synergies among the different business units. It should be noted, however, that SAB

produces a portfolio of drinks customized to each country of operation.

The flexibility provided by SAB's decentralization allows for rapid responses to changes in demand across various markets. This approach helps to mitigate risks from a downturn in demand in a single region, such as adverse weather conditions in Tanzania or economic troubles in Romania, which were successfully offset by the notable growth in Poland and China (Business Week, 2004). However, this delayered structure also presents potential challenges with managing individual business units efficiently. To mitigate these risks, SAB holds consistent meetings between headquarters and its diverse units to facilitate strong information flows. Additionally, SAB could consider investing in network systems that are suitable for coordinating every business unit globally.

In order for SAB to successfully implement its group development strategies, it is important to consider the organizational structure and culture. As noted by McGee, Thomas, and Wilson in Chapter 13, the characteristics of the organizational structure play a significant role in this process. Additionally, it is important to examine the organizational culture to ensure that it aligns with the development strategy pursued by SAB.

The dominant culture at SAB is reflected in three key concepts: communication, motivation, and teamwork. Our findings suggest that integrating the company's organizational culture into acquired companies aligns with our growth strategy.