SAN MIGUEL CORP.

Presented by:

Dhruv Patel

Hiren Ahir

Jijo Francis

Lejo John

Priyal Shah

Siddharth Thapa

INT RO DUCTION T O SAN MIGUE L INC .

http://youtu.be/Z5zxju6dJ68

SAN MIGUEL CORPORATION (SMC)

Established in 1890, Southeast Asia’s first brewery

produced and bottled and it eventually became one of the

bestselling beers in the region.

By 1914, San Miguel Beer was being exported from its

headquarters in Manila to Shanghai, Hong Kong and Guam.

A pioneer in Asia.

Dominates other brands by being in the top 10 beer

manufacturing companies of the world.

OTHER BUSINESS

Core business:• Beverages• Food• Packaging• Properties

New business:• Fuel and oil• Infrastructure• Power and energy• Mining • Telecom• Banking

WHY SMC

• Very diverse in its business.• It is one of the largest employers with a workforce of

over 17000 employees.• SMC contributes 5% to the Philippines GDP through

its highly integrated operations.• Thousands of additional jobs are created through

suppliers, retailers, distributors and other business partners.

• Eduardo M. Cojuangco, Jr the Chairman and Ceo of SMC committed P550 million to build 5000 homes for the ones who were left homeless by Typhoon Sendong.

ROLE OF GEOGRAPHY AND THE FIRM

One of the largest archipelagos with 7100 islands.

It is at the crossroads of international shipping and

airlines

Centrally situated along the fastest growing nations.

Proximity by jet to:

Hong Kong, Taipei, Seoul, Tokyo, Singapore,

Australia, New Zealand

Climate

It has a tropical climate of

around 27 degree centigrade.

Unlike countries with

extreme temperatures, it has

a benefit of working in

favourable climate

conditions.

CLIMATE AND TRANSPORTATION NETWORK

Transportation

Network

Being and island nation the

major mode of transportation

is the waterways.

Deep-water harbors and

seaport terminals favours

cheap transportation of goods.

DEMOGRAPHICS

12th populous country with population over 85

million

Population density is estimated 255 persons per

square kilometers of land

Literacy rate 94.6%

Third largest English speaking country

Political Factors

Tax incentives

ASEAN Free trade area (AFTA)

Political and market factors

worked in favour of the company

Economic Factors

Philippines’ economic freedom

score is 58.2, making its

economy the 97th freest.

PEST ANALYSIS

Social

Company is a true blend of

cultures

History of American rule and

contact with merchants.

Technological Factors

High skilled IT workers and high

in Technology

Technology allows producing

products at a cheaper price.

ROLE OF CULTURE AND THE FIRM

Success of San Miguel also depends upon its

cultural practices they follow.

Since the company has expanded to different

countries it has a very strong cultural background.

The similarity of cultures around the Asian

countries affects the sales of SMC.

VALUES OF THE COMPANY

Teamwork

Passion for success

Respect

Focus on consumers

Innovation

Integrity

Social responsibility

STRATEGIES

Company’s growth strategy is basically three-pronged:

1. To strengthen and maintain the dominant positions held up

in the market by its various products.

2. By involving itself in faster growing industries which boosts

the margin by delivering 15% return on equity annually.

3. SMC is capitalizing on its unique strengths in brands and

distribution to weave its products more deeply into the

fabric of everyday life.

GEOGRAPHICAL ADVANTAGES

Philippines is known for its rich natural resources.

- SMC generates power from the Maria

Christina Falls which is a great power

resource in Philippines.

- SMC also produces coconut oil and has set

up one of the two copra solvent extraction

plants in the city as Philippines has abundant

resources of coconut.

Asset leverage

High R&D

Innovation

Loyal customers

Market share leadership

Strong management team

Strong brand equity

Strong financial position

Pricing

Reputation management

No online presence

Lack of scale.

 

SWOT ANALYSIS

Strengths Weakness

Acquisitions

Asset leverage

Emerging markets and

expansion abroad

Innovation

Product and services

expansion

Economic slowdown

External changes

(government, politics, taxes,

etc.)

Maturing categories,

products, or services

Price wars

Product substitution

Opportunities Threats

CORPORATE STRUCTURE

It is very diverse and it

has its hands on many

businesses which includes:

• Beverages

• Food

• Packaging

• Other business

CONCLUSION

For generations the company has generated a strong consumer loyalty

through brands that are most formidable in the Philippine food and beverage

industry.

Brands include:

San Miguel Pale Pilsen

Ginebra

Monterey

Magnolia

Purefoods.

San Miguel Beer, holds an over 95% share of the Philippine beer market.

The Company’s operations extend beyond its home base of

the Philippines to China (including Hong Kong), Vietnam,

Indonesia, Malaysia, Thailand and Australia.

Through strategic partnerships it has forged with major

international companies.

San Miguel has gained access to managerial expertise,

international practices and advanced technology, thereby

enhancing its performance and establishing itself as a world-

class company.

THANKS FOR

WATCHING