South Africa Brewers Ltd.

By now it has become the second largest brewer by stack in the world. atomic number 16 Africa Breweries (SAB) has been in business for a century. The change in the political system in 1990 in federation Africa, through the dissolution of apartheid, paved endless opportunities. In 1994, SAB was invited to participate in pronounce ventures with Tanzania, Zambia, Mozambique, Angloa to revitalize brewing industry brewing 49 out of every 50 beers consumed in South Africa. They practically killed competition. (McQuade 2004)In 1993, SAB expanded to Hungary and bought Dreher which opened the doors to Europe because it subsequently established trading movements in Poland, popishia, Slovakia, Russia, Czech Republic. In the 90s SAB likewise entered into operations in China. In 1999, it got itself listed back in the capital of the United Kingdom Stock Exchange to raise capital for expansion. SAB expanded to Central America in 2001 thus, that year motto SAB as the 5th largest brewer in the world and the fastest evokeing from 1996 to 2000 with brewing operations in 21 countries and an output of 77m hectoliters of beer. McQuade 2004) 1998 strategy was to maximize its 100 years of brewing experience in South Africa and ruin beer marketplaces in uphill economies by investing significantly in its core business. So, it commenced brewing operations in 5 African counties, 3 Chinese provinces, 4 Eastern European countries since 1995. Therefore, SAB continued to develop South Africa invest for increase in the international business pursue incremental growth. Therefore since its ball-shaped expansion in 1994 the trend in sales and profits grew steadily upward.SAB categorically indicted in 2002 that emerging markets is its forte. Finally in July 2002, SAB successfully acquired miller Breweing Co. the 2nd biggest brewer in U. S. A. by paying Philip Morris US$3. 6 cardinal in stock of the merged company and SAB assumed the US$2 billion debt of Miller. (McQuade 2004) This merger was decried by some analysts because the rationalization of strong growth business is not true just now it is just that SAB wants Miller as a mature cash cow. And the merger in totality is losing market share. True enough the share dropped to 18. % in 2003 in London trading. So, aggressive reforms were adopted considering they unknowingly arouse to the truth that Miller is such a badly managed company the dragged SAB with it. (McQuade 2004) 2004 Strategic Posiiton By end 2003, the lie in of the African markets gave 3. 2% growth. In China, the organic growth was 5. 7%. In India, the first full 2003 operation returned a breakeven. The home base market South Africa saw mixed fortunes as consumer sp ratiocination became erratic. The teetertotter of growth and downturn average 4% per annum.The northbound American US market went down 3. 7% from acquisition with its core brands losing market share. In Europe, exceptional profit growth showed 39%. Restructuring of the Central American business had to be undertaken due to depressed performance. SAB opted to continue the conversion of the company into a marketing focussed enterprise with a strong portfolio of relevant brands in the region. (McQuade 2004) Therefore, SAB Miller opted that from 2004, they will adopt the following strategies to grow shareholder value thru 1) driving volume and productivity ) optimizing and expanding existing positions through acquisitions 3) seeking value added opportunities to elicit position as a globular brewer 4) growing brands in the international premium beer separate (McQuade 2004) Long Term Effect From the result of 11% share growth for the financial year ending March 2003, there is still a big room to maneuver operational efficiency establish regional brands and market positions pursue acquisitive growth pursue real value for shareholders. Brand focus will a crucial focus through an the intensified role of a Group marketing Director.SAB believes that there are real opportunities to increase sales in growing international premium brands. (McQuade 2004) SAB is confident of its strong national and regional brands principally based on the mainstream segments of the market. The challenge further requires invigorating the say brands to sustainable health and position. With a all its brands stable and well positioned, SAB envision to sustain their continued growth befitting their prime position and prestigiousness in the worlds brewing industry. (McQuade 2004) RecommendationIt is and then a crystal clear given that South Africa Breweries Ltd and its century old experience and its established brands and prestige stands solid in its base operations, South Africa and the African Continent. Its global venture in the decade of the 90s still favored them with the opportunities. They savored the rewards from those first steps. It still saw a sustainable trend until it acquired Miller U. S. A. There are some hidden waves in its other global, emergi ng ventures in the sense that they tho saw sustained growth in Europe and the African markets.China, India, Central America and U. S. A North America gave them the initial years of 2003, 2004 as dicey. True enough, it reckoned revitalizing brand counselling to be their fortification focus. However, SAB and SAB Miller never mentioned anything in detail about inherent people management and operational management insights that will need a thorough study. What the case study reflected is that SAB brings in their technical and operational expertness into an acquired emerging market facility.They presumably likewise brought in South African professionals to handle management of an whole foreign operation in an entirely foreign land. The first and foremost consideration in global business is the profound cultural analysis of where one is stepping its foot in. The story goes that St. Agustine consulted St. Ambrose during his visit in Milan in 387 AD as to whether he should fast on a Sat urday or a sunshine the famous saying was born when in Rome, do as the Romans do.And knowing how to do things the Roman way will require thorough information and analysis and initial trial and error practice. Adopting and adapting to the topical anaesthetic temperament and conditions is not just a matter of the ABC or 123 of their laws but more so of their norms and values. Managing share values of a company and brand strategy is beyond the arithmetic of the exercise. It is also appreciating that the men that will contribute to such share values and premium brand strategy require a most personalized and inherent approach.