Strategic Management

TABLE OF CONTENTS

1. INTRODUCTION 2

2. VISION & MISSION STATEMENTS (Q1) 3

2.1 Current Vision & Mission 3

2.2 New Vision & Mission Statements 3

2.3 Creating a Vision & Mission Statements 3

3. SWOT ANALYSIS MATRIX (Q2) 5

4. IMPORTANCE STRATEGIC MANAGEMENT PROCESS (Q3) 6

5. CHALLENGES OF STRATEGY IMPLEMENTATION (Q4) 7

6. CURRENT STRATEGY (Q5) 8

7. REFERENCES 10

8. CONCLUSION 10

1. INTRODUCTION

A few aspects of the SABMiller Annual Report 2011 have been selected for analysis in this assignment as well a general overview commentary where theoretical concepts of Organizational Strategy Planning and Management have to be applied to demonstrate understanding and knowledge.

2. VISION & MISSION STATEMENTS (Q1)

2.1 Current Vision & Mission

* SABMiller's vision has embraced the key characteristic namely, "what do we want to become" in an emotionally optimistic tone.

* To be "admired" is to be well-liked, appreciated & respected; this identifies what the organization intends to be in the future and where it should be to meet the needs of its shareholders.

* It illustrates the nature and purpose of the organization and uses this understanding to move the organization towards a goal.

* It is short, simple, powerful and inspirational. It also gives a clear direction to everyone that reads it. It provides a sense of belonging to the employees.

* The core product of SABMiller is beer however they have diversified their product offering and I feel the mentioning of "beer" in the vision excludes important business strategies.

* The mission statement carefully answers the questions "what do we do?", "how do we do it?" and "for whom do we do it?"

* It is flowing, catchy, understandable, believable and clearly shows strategic direction of the company to lead local & global markets by the employment of the words "own & nurture".

* This mission statement confidently states SABMiller's reason for existing, it's a source of motivation, tells their story and ideals in less than 20 words.

* The words "consumer" and "customer" appear to be inconsistent & conflicting in this context and in some areas of the annual report.

2.2 New Vision & Mission Statements

VISION: To be admired as the first global beer company by all measures.

MISSION: To lead and grow through our products, services and relationships, sustainably.

2.3 Creating a Vision & Mission Statements

Creating a vision and mission statement is a collective effort for the organization, as many people as possible must be involved. As organizations grow bigger, it is usually the top management that knows why the business exists in the first place. Employees in the lower levels are unable to see the "big picture" in their routine day to day activities and that lead to job dissatisfaction.

If they are part of creating the "big picture" there is a sense of belonging, sense of worth and identity which ensures the employees know it, understand it and can apply it in making decisions.

If the employees are involved, it will help to bring the people closer together and promote closer working relationships throughout the business creating a great platform for implementing strategies.

Ask yourself "why?" Write down your ideas for why we are here, the dream, the thought of success. Ask yourself "what?" Write down your ideas on what makes you excited about your work, what provides motivates people to show up every day, this is the emotion. Ask yourself "where?" write down your ideas on where the organization should be in the next 5 years, this is the goal everyone must meet.

The vision & mission statements provide a source of motivation for the employees, every team or department can benefit from it. A mission statement is a tool to keep us on track to meet the business main vision. Your vision & mission statement should be on display for all to see, in the most prominent place in your business, it must stand out, big and bold.

3. SWOT ANALYSIS MATRIX (Q2)

STRENGTHS

1. Strong Market Share - 2nd place globally

2. Strong Financial Performance - Group Revenue up 7%, Lager Volumes up 2%

3. Robust Global & Local Network of Breweries & Distribution Infrastructure , Strong Growth Prospects

4. Diversified in Products & Geographical Distribution - Over 200 beer brands, over 75 countries WEAKNESSES

1. Narrow Focus - Local Beer Brand Focus

2. Declining Profitability in some markets

3. Small player in terms of global brands

4. Multiple Currency Fluctuations

OPPORTUNITIES

1. Geographic Expansion - Domestic & International (Emerging Markets)

2. Total Beverage Volumes up 3%

3. Potential to diversify into related market segments, Expansion brand portfolios

4. New markets offer great potential & growth SO STRATEGIES

1. Expand network & infrastructure in Africa (S3, O1)

2. Meet demand and supply (S1, S2, O2)

3. Diversity brand offering (S4, O3)

4. Enter new markets through mergers/acquisitions, joint venture/partnerships (S3, O4) WO