For a company's competitor, a case study provides an essential basis for the creation of a counter strategy for battling head on. For students, case studies give insight on what happens in the real corporate world. It gives them the chance to diagnose and prescribe solutions to company's dilemma, training them to become managers (Thomson 2002).
This paper will focus on the case study entitled South African Beverages (SAB): Achieving Growth in the Global market. The main focus is to expose the central issues on the business organization's alternative strategic directions. In order to fully understand the situation of SAB, this report will also make use of strategic management techniques and concepts.
According to Krasner (1999, p.34-35), globalization can mean some mix of developments that might include the legitimization of human rights, the digitalization of transactions, the speed of communication, the density of global non-governmental organization (NGO) networks, the transmission of diseases, the growth of international capital markets, the surge of manufacturing in geographically dispersed areas, the universal availability of MTV, the increase in illegal migration, legal migration, and the like. For business organizations like SAB, globalization means the integration of the world into a single economic village posting various opportunities to expand their operations overseas. SAB, as with any firm, is faced with the challenge of crafting an efficient global strategy in order to strengthen its position in the rapidly evolving global market. The case gives three alternatives that the company can take: merge with a major developed country brewer; find a large emerging market brewer to acquire; and focus on emerging market growth opportunities.
The case lays out the significant information that SAB needs to consider before it can make any strategically efficient choice. Looking closely, this wealth of information can either be classified as products of internal or environmental scanning. Internal scanning essentially looks at the vision, mission, objectives, structure, strategy, core competence, strengths and weaknesses of a company while environmental scanning refers to the analysis of the external factors which affects the business organization such as opportunities, threats, trends, changes, and developments.
Any strategic direction taken by SAB should always be in line with how it wants to see itself in the future and its strategic goals. The company's vision is to be one of the top five brewers in the world. Setting its eyes on global opportunities, its mission communicates that it aspires to be "a world class brewer and marketer of fine quality beers, while behaving in a socially responsible and progressive manner" (Sprague and Klein 2000). Supporting these goals are SAB's core values to which it is highly committed: customer service; product quality; continuous improvement; respect, dignity, and social responsibility; participation and empowerment; wealth creation, reward, and recognition; communication; employee development; safe and healthy work environment; and community and environmental commitment (Sprague and Klein 2000).
In terms of organizational structure, it is apparent that SAB is employing a