San Miguel Essay Example
San Miguel Essay Example

San Miguel Essay Example

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Title of the Company

Abstract: One of the most popular and well-known brands of beer in the Philippines and throughout Southeast Asia, San Miguel, has been brewing beer for well over one hundred years. The company’s brewing business produces such well-known and popular brands as San Miguel Pale and Red Horse. The company also owns Ginebra San Miguel distillers, San Miguel Pure Foods, and San Miguel Packaging. The company has a vertically integrated structure in the food and agriculture industry, ranging from breeding to canning, to retail branding.

San Miguel Corporation began as La Fabrica de Cerveza de San Miguel in 1890, operating in Manila under a royal charter from Spain. The company was incorporated in 1913, and in the 1960s changed its name to San Miguel Corporation (SMC). Early in the company’s existence, it began a process of backwards vertical integration in which it

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acquired barley fields and later expanded into other agricultural products. The company eventually expanded into soft drinks, spirits, and packaging operations.

San Miguel has the distinction of being the first foreign bottler of Coca-Cola, acquiring the franchise in 1927. Today the company is the largest food and beverage business in the Philippines, as well as all of Southeast Asia. The company operates over 100 facilities in the Philippines, Southeast Asia, China, and Australia. San Miguel Corporation (SMC) earns most of its revenue in the Philippines, and most of its revenue is generated in its food and beverage industries.

Vision: SMC’s fundamental and historical philosophy — Profit with Honor Mission: San Miguel Foundation, Inc. s committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate social responsibility among the various

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San Miguel businesses in pursuing mutually beneficial programs that lead to self-reliance and sustainability.

I. Objective: To develop export markets for new product as well as for those who are already being produced by the Corporation.

II. Central Problem: develop export markets for new product.

Competition is intensifying in all of SMC’s business lines and each has to be able to make it on its own. No foreign brands had any significant presence, but several were known to be increasingly interested in the Philippines market. Asian beer markets were similar to the Philippine beer market. Expanding to other Asian countries is a good idea. They are near the Philippines and SMC’s business managers are familiar with business conditions of the region. Threats  There was one major player, followed by a few players.  International beer operations had competitors. . Asia Brewery is selling cheaper beer. It continues to build breweries even if the existing breweries do not operate to full capacity.  SMC workers is increasingly getting younger, more aggressive, and less reverent toward the company as an institution Alternative course of action. Develop export market Advantage  It will be for the benefit of the company. Disadvantage It will be an additional expense for the company.  Test a new equpment Advantage The customer will be able to like them more because of the new equipment that they will be used.

Disadvantage  It will take time and effort to do it. Advertise what is new about the company Advantage  The customer will know more about what’s new with the company.

Disadvantage

The competitors will imitate or improve their equipment so that the customer will have a focus on them. I, therefore, conclude that the

solution to the problem is alternative number 1 because developing export markets for new product will increase the income of the company. More customers from the outside world will order their products.

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