INTRODUCTION
San Miguel Corporation (SMC) was originally founded in 1890 as a single brewery in the
Philippines. The Company has since then transformed itself from a beverage, food and
packaging business into a diversified conglomerate with businesses in fuel and oil, energy,
infrastructure, and real estate industries. Best known for its internationally distributed beer, San
Miguel Corporation can only be described in superlatives. It is Southeast Asia's oldest and
largest brewer. With nearly 33,000 employees, the company also ranks among the Philippines'
largest, most consistently profitable, and most admired manufacturers.
STRATEGIC PLAN
STRATEGIC MANAGEMENT
BACKGROUND INFORMATION
Don Enrique Maria Baretto de Ycaza Y
Estaban was the founder. Best known for its
internationally distributed beer, San Miguel
Corporation can only be described in
superlatives. It is Southeast Asia's oldest and
largest brewer. With nearly 33,000 employees,
the company also ranks among the Philippines'
largest, most consistently profitable, and most
admired manufacturers. San Miguel's flagship beer utterly dominates both the Filipino and Hong
Kong markets, with 90 percent and 60 percent respective shares. A 1988 brief in The
Economist noted that Filipinos order "beer" at bars and restaurants, knowing that they'll receive a
San Miguel. But San Miguel didn't make it to the top of the regional heap on good beer alone. It
also makes agricultural feeds, processed and fresh meats, ready-to-eat foods, packaging, and
non-alcoholic beverages. By the early 1990s, beer constituted about half of San Miguel's annual
turnover. In fact, the conglomerate has grown over the course of its more than 105 years in
business to generate four percent of its home country's gross national product and six percent of
tax revenues.
Read more: https://www.referenceforbusiness.com/history2/86/San-Miguel-
Corporation.html#ixzz7IqbNXEX0
SAN MIGUEL CORPORATION
ORGANIZATIONAL CHART
Chairman and Chief Executive Officer Board of Directors
President and Chief Operating Officer Audit and Risk Oversight Internal Auditor Committee
Committee
Corporate Mergers Chief Finance Officer Human Resources Procurement General Counsel and
and Acquisitions Compliance Officer
Corporate Affairs Information and Procurement
Governance
Technology Management
Data Protection and
Treasury Comptrollership Security Office
Financial Planning and Investor Relations Planning and Research
Analysis
MISSION
To provide goods and vital services well within the reach of every Filipino, making
everyday life a celebration.
VISSION
Employees should be empowered to be customer-centric and people-oriented in creating
value and ensuring customer satisfaction so that they can give high-quality services to all their
clients.
VALUES
We do what is right We believe in profit with honor. For us, this simply means doing
what we’ll say we’ll do and acting with honesty, fairness, and integrity.
⮚ We believe in doing our best.
We will give every single person we touch the best we can offer. We are
passionate about our brands, products and services.
⮚ We take accountability for our decisions.
We hold ourselves accountable for delivering results, we keep to our
commitments, and we take responsibility for our actions.
⮚ We think innovation.
Our innovation lends us agility and is driven by our understanding of what our
customers and stakeholders need.
⮚ We help our people succeed.
We believe in treating each other with respect. We cultivate a culture that
recognizes the individuality and contributions of each of our employees, helping
them to become productive and responsible members of society.
⮚ We are a good neighbor.
We are a positive force in our communities. We believe in doing what is good for
the greatest number of people.
⮚ We advocate sustainable development.
We believe in using only what we need and integrating sustainability practices
into our operations. Water stewardship, energy optimization and reducing waste
are our key environmental priorities.
Problem Statement
GENERAL PROBLEM
The San Miguel Beer slow growth rate because of its large market share and the credit
rating downfall of the company’s stock price.
SPECIFIC PROBLEM
What would be the result of the radical diversification of the plans made by Mr.
Conjuangco to the company and what decisions and risks he should take to make his company
get in shape again.
SWOT ANALYSIS
1. Strengths
✔ It is already globally and internationally known.
✔ It is a large group of companies.
✔ The company is diverse into non-allied businesses.
2. Weaknesses
✔ The company has a large market share.
✔ The company suffered from a credit rating downfall.
✔ Dynamic market environment.
✔ Losing its international assets.
3. Opportunities
✔ New ventures for the company.
✔ The company can merge into non-allied businesses.
✔ The company can engage into more profit-oriented businesses.
✔ Successful diversion plans.
4. Threats
✔ Effectiveness of diversion plans.
✔ Large loss of money due to large market share.
✔ Losing of other contracts due to credit rating downfall.
✔ Wrong evaluation of plans.
✔ Other competitors
GOALS
San Miguel Corporation ( and not exclusively as a beverage entity ), to expand the market
share to multiply their current scope, to grow their products- services portfolio, and to increase
sales. To assess whether the current business strategy is appropriate given the current business
situation and the determine the right business strategy; To achieve business growth and ensure
profitability of business operations.
EVALUATION
Therefore Mr. Cojuangco should change his marketing strategy. Especially that his
business had meet its slow growth rate. He can use ‘twists’ to make his product more
presentable. Such as, the improvement of his product packages. Other example is to add some
flavor to his current selling beers. Making new mixes to have new and attractive flavors. He can
also use the gimmick approach to try if the response from the projected customers will be great.
He can also use advertisements to catch the attention of people. Having celebrities on every
advertisement can catch customer’s patronization.
Executive Summary
San Miguel Food and Beverage, Inc. (SMFB) is the Philippines’ leading food and
beverage company, combining the strength of San Miguel Brewery Inc., Ginebra San Miguel
Inc, and San Miguel Foods. It has among the most recognizable and top-of-mind brands in the
industry and holds market leading positions in the fo od, beer, and spirits categories. It is
one of the largest and most diversified conglomerates in the Philippines by revenues and total
assets. SMC contributes to the growth of downstream industries and sustains a network of
hundreds of third-party suppliers. Like any other company, San Miguel Corporation also
experience problems that are among the responsibilities of the SMC’s Area Operational
Manager, who is assigned to ensure that the company yields its best performance. They are a
valuable part of the management board responsible for high-level activities such as external
recruitment, establishing best practices, and implementation plans. Right now, the priority is
really to ensure the continuous and efficient delivery of its products and services for the people,
strengthen and expand new programs initiated during this crisis that have worked for the
company, implement the plan to safely bring the workforce back, and continue to help the
country manage the impact of this pandemic.
References:
https://www.sanmiguel.com.ph/
https://www.sanmiguel.com.ph/page/our-history
https://www.sanmiguel.com.ph/page/our-mission-and-vision
https://www.referenceforbusiness.com/history2/86/San-Miguel-
Corporation.html#ixzz7IqbNXEX0
