SAN MIGUEL CORP.

Presented by:
Dhruv Patel

Hiren Ahir
Jijo Francis Lejo John Priyal Shah

Siddharth Thapa

I N T RO D U C T I O N T O S A N M I G U E L INC.

http://youtu.be/Z5zxju6dJ68

S A N M I G U E L C O R P O R AT I O N (SMC)
Established in 1890, Southeast Asias 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 Fuel and oil Infrastructure Power and energy Mining Telecom Banking

New business:

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.

RO L E O F G E O G R A P H Y A N D T H E 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

C L I M AT E A N D T R A N S P O R TAT I O N NETWORK
Climate
It has a tropical climate of around 27 degree centigrade. Unlike countries with extreme temperatures, it has a benefit of working in
Transportation Network Being and island nation the major mode of transportation is the waterways. Deep-water harbors and seaport terminals favours cheap

favourable climate conditions.

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

PEST ANALYSIS
Political Factors Tax incentives ASEAN Free trade area (AFTA) Social Company is a true blend of cultures History of American rule and

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.

contact with merchants.

Technological Factors High skilled IT workers and high in Technology Technology allows producing products at a cheaper price.

RO L E O F C U LT U R E A N D T H E F I R M

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
Companys growth strategy is basically three-pronged: 1. To strengthen and maintain the dominant positions held up in the market by its various products.

2.
3.

By involving itself in faster growing industries which boosts the

margin by delivering 15% return on equity annually. SMC is capitalizing on its unique strengths in brands and distribution to weave its products more deeply into the fabric of

everyday life.

G E O G R A P H I C A L A DVA N TAG E S
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.

SWOT ANALYSIS
Strengths
Asset leverage High R&D Innovation

Weakness

No online presence Lack of scale.

Loyal customers
Market share leadership Strong management team Strong brand equity Strong financial position Pricing Reputation management

Opportunities

Threats

Acquisitions

Economic slowdown External changes (government, politics, taxes, etc.) Maturing categories, products, or services Price wars Product substitution

Asset leverage
Emerging markets and expansion abroad

Innovation
Product and services expansion

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 Companys 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