Value Chain free essay sample

QUESTION 1: Identify factors in the Microenvironment (PESTEL) which are relevant to SABMILLER. ANSWER: SABMiller’s activities are heavily influenced by the political, social and legislative environmental factors within which it operates; meaning this has made the company proactive when dealing with macro factors. SABMILLER operates in developing as well as matured markets. These markets include very challenging aspects which in the past has limited the threat of new entrants. These markets includes very tough competition; as rivalry in the Brewing industry is increasingly high. SABMILLER tend to own multiple brands with different market positions. In this market, it is much easier for competitors to launch rival products that compete directly on price and thus eroding market share. After analyzing the company’s competition, SABMiller has and still is experiencing this problem; for example in North America; especially recently where InBev has bought Anhevser-Busch; this has helped the dominant Brewer to enlarge a further space between themselves and SABMiller; which has affected the company’s market share future plans deeply, SABMiller now has to come up with new innovative ideas to try and close the gap between them and A-B InBev. We will write a custom essay sample on Value Chain or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The American Industry is the largest brewing market by value as rivalry is now more intense than ever, meaning more competitors, are entering into a price war with SABMiller. This has become a huge threat for SABMiller, but it does also hold opportunities to weaken this threat down. For example the company has the opportunity to acquire more stakes in the Brazilian market, or become the owner of China resources which is the largest brewer in China. SAB’s acquisition of Miller was largely due to the pressure from the London Stock Exchange. It is felt that SAB was at risk due to its over reliance of soft currencies in certain market. Even though their core competences were elsewhere, SAB went on with the takeover to please the stakeholders. SABMiller’s South African Culture has shaped the strategic development of the company. It is this culture, which makes their distinct capability of entering emerging markets less imitable. As highlighted in the case study, SABMiller strategy represents a synthesis of learning based on the historical developments of the company. In conclusion, in order to identify the company’s position. It is important to carry out its business external analysis. If is also essential to identify its core competences and capabilities as well as stakeholder expectations in order to successfully identify the company’s strategic position. QUESTION 2: Which force in the external environment is exerting grater pressure? How should the organization react? ANSWER: The forces in the external environment is exerting greater pressure is the emergence of competitors in its prime markets. In future, SABMiller will have to face tough competition from its rival. How should the organization react? a) SABMiller has to come up with new innovative ideas to try and close the gap between them and the competitors. b) SABMiller had to make some strategic choices to please its key players. c) SABMiller to acquired local brewing business to enable them to grow and overcome certain business restriction through acquisition. d) By adding quality and consistency to the beer. e) By bringing its own operating practices and management skills. f) By  introducing brand management and its brand portfolio.

Free Essays on McDonalds

Does McDonald’s offer a model which other businesses should follow? At first, most people must have laughed at the idea of a chain of restaurants selling identical products all over the country, but little did they know that the genius idea that they had mocked would go on to revolutionise the business environment of the future. McDonald’s is now the international market leader for fast food, and has been ever since its pioneering first restaurant was launched in San Bernardino, California in 1948. Historical Background The original founders of McDonald’s, and the fast-food concept, were brothers Dick and Mac McDonald. In 1948, they modified their drive-in restaurant, creating the standard for the contemporary fast-food restaurant of modern times. From the introduction of a limited menu of just nine items, and by focusing on efficient production and service, the brothers were able to halve the price of their hamburgers to 15 cents. Ray Kroc, who, at this time was a 52-year-old! milkshake machine salesman, heard of the brothers’ generation of around $350,000 in annual revenues, and instantly became convinced that its concept could work in other cities. Kroc became the first franchisee appointed by the McDonald brothers, and opened his first restaurant the following year in Des Plaines, Illinois. In 1961, Kroc bought all the rights to the McDonald’s concept from the McDonald brothers for $2.7 million. Kroc was somewhat of an obsessive individual, fixated with rules, regulations, procedures, and obedience to his strict rules of discipline. Kroc was especially concerned with maintaining McDonald's clean image, as well as that of life in general, and could regularly be seen picking up litter outside of his restaurants in order to maintain the high standard of cleanliness upon which many of his principles were based. During the 1960s, McDonald’s invested a great deal of capital into advertising and marketing campaigns. In 1962, ... Free Essays on McDonalds Free Essays on McDonalds Does McDonald’s offer a model which other businesses should follow? At first, most people must have laughed at the idea of a chain of restaurants selling identical products all over the country, but little did they know that the genius idea that they had mocked would go on to revolutionise the business environment of the future. McDonald’s is now the international market leader for fast food, and has been ever since its pioneering first restaurant was launched in San Bernardino, California in 1948. Historical Background The original founders of McDonald’s, and the fast-food concept, were brothers Dick and Mac McDonald. In 1948, they modified their drive-in restaurant, creating the standard for the contemporary fast-food restaurant of modern times. From the introduction of a limited menu of just nine items, and by focusing on efficient production and service, the brothers were able to halve the price of their hamburgers to 15 cents. Ray Kroc, who, at this time was a 52-year-old! milkshake machine salesman, heard of the brothers’ generation of around $350,000 in annual revenues, and instantly became convinced that its concept could work in other cities. Kroc became the first franchisee appointed by the McDonald brothers, and opened his first restaurant the following year in Des Plaines, Illinois. In 1961, Kroc bought all the rights to the McDonald’s concept from the McDonald brothers for $2.7 million. Kroc was somewhat of an obsessive individual, fixated with rules, regulations, procedures, and obedience to his strict rules of discipline. Kroc was especially concerned with maintaining McDonald's clean image, as well as that of life in general, and could regularly be seen picking up litter outside of his restaurants in order to maintain the high standard of cleanliness upon which many of his principles were based. During the 1960s, McDonald’s invested a great deal of capital into advertising and marketing campaigns. In 1962, ... Free Essays on McDonalds Catering to customers had always been the company’s focal point, but to meet changing and divergent customer needs, McDonald’s was exploring many different options, and management thought a basic question had to be answered. Would the chain’s new concern with flexibility in meeting customers’ changing needs require a fundamental change in McDonald’s bedrock strategy? or was this just a new, albeit incredibly complicated, situation once again adaptable to the company’s traditional approach? Early responses to new customer desire and intensifying competition represented just a piece of the company’s maelstrom of creative activity. Further efforts were in progress as well. 4. Why did McDonald’s undertake its collaboration? How should McDonald’s proceed next? Consumers have been changing. They are worried about the effects the products or its package might have on the environment. While this awareness is growing up, a new cha llenge had been approached: protecting the environment. While many companies had seen the outbreak of environmentalism in the late 1980’s as a threat, McDonald’s saw an opportunity: the chance of knitting a responsible environmental policy into its evolving operations strategy. McDonald’s take Environmental Defense Fund (EDF) as a new partner. They engaged EDF to help address environmental concerns, one aspect of increasingly complex situation in which the company now found itself. For the private corporation of McDonald’s stature to collaborate with an environmental organization entailed significant risk and required willingness, by both parties, to consider new ways of thinking about operation practices. The partnership turned out to be a success, generating advances in area beyond waste reduction. McDonald’s had announced its McRecycle USA. Program. They achieve to improve functionality of package, reduce waste and volume of boxes. Moreover less pollution was handled. McDonald’s did fact...