Strategic ManagementEssay Preview: Strategic ManagementReport this essayTABLE OF CONTENTSINTRODUCTIONVISION & MISSION STATEMENTS (Q1)Current Vision & MissionNew Vision & Mission StatementsCreating a Vision & Mission StatementsSWOT ANALYSIS MATRIX (Q2)IMPORTANCE STRATEGIC MANAGEMENT PROCESS (Q3)CHALLENGES OF STRATEGY IMPLEMENTATION (Q4)CURRENT STRATEGY (Q5)REFERENCESCONCLUSIONINTRODUCTIONA 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.
VISION & MISSION STATEMENTS (Q1)Current Vision & MissionSABMillers 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 SABMillers reason for existing, its 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.New Vision & Mission StatementsVISION: To be admired as the first global beer company by all measures.MISSION: To lead and grow through our products, services and relationships, sustainably.Creating a Vision & Mission StatementsCreating 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.
SWOT ANALYSIS MATRIX (Q2)STRENGTHSStrong Market Share – 2nd place globallyStrong Financial Performance – Group Revenue up 7%, Lager Volumes up 2%Robust Global & Local Network of Breweries & Distribution Infrastructure , Strong Growth ProspectsDiversified in Products & Geographical Distribution – Over 200 beer brands, over 75 countriesWEAKNESSESNarrow Focus – Local Beer Brand FocusDeclining Profitability in some marketsSmall player in terms of global brandsMultiple Currency FluctuationsOPPORTUNITIESGeographic Expansion – Domestic & International (Emerging Markets)Total Beverage Volumes up 3%Potential to diversify into related market segments, Expansion brand portfoliosNew markets offer great potential & growthSO STRATEGIESExpand network & infrastructure in Africa (S3, O1)Meet demand and supply (S1, S2, O2)Diversity brand offering (S4, O3)Enter new markets through mergers/acquisitions, joint venture/partnerships (S3, O4)
Efforts by the leading distributors in global craft beer and the best in local craft beer, will be met by a huge growth and profitability opportunity. With new markets joining the brewing and the distribution model, the Brewers Company is prepared to invest in expanding from its initial focus on small, regional, or local markets to fully-fledged global brewing activities. To do so, we need to ensure that we maintain the highest ROI potential over the long term.To ensure the current position is where it is in the industry and be a strong contender for the leadership of the world’s largest craft brewery and beverage brand, as well as our most successful global and domestic brands, we will have to work and adapt to new markets. A strong brand will, therefore, take time to reflect on any major trends and changes in the markets that it represents. The success of your company must mean the results we offer are better than those in the past and that we have grown a strong position in a new group of global craft breweries, and further investments in new market segments.We will be constantly expanding the craft beer industry with the formation of a team of entrepreneurs who will develop new marketing strategies and business model for the market we are creating. This is the reason we need new opportunities, so that we can innovate, and in turn expand our portfolio of craft offerings to our local community. We need to continue to innovate and invest in more sustainable and profitable things that will deliver a better quality beer, and create new relationships with local businesses and the broader market.Our first goal as a brand is growth. With the growth of our craft beers on tap globally, as well as in international markets, our growth is poised to continue. We have to be able to increase our global share of local beer brands so that all of our local breweries, distributors, and international brands can flourish. For this, we need you.We are going to have to expand our beer in a new way while increasing access to our local market. We will need to learn how to effectively partner with local beer brands with our own distribution network so that our brewing and distribution models can thrive. We need to develop new market segments that will be competitive for our new local brands and, if not, invest in new and better-designed collaborations that will meet demand. In a world of innovation and rapid growth, success is about being able to adapt and grow as an industry. If our brand is to grow, we must focus on building our brand as a global brand and be a strong contender for leadership. For example, we need to use growing breweries to drive our distribution model across the world by growing and growing as a leader in the global distribution of brews, not just the local ones which are growing.This is the challenge of today’s new and growing global brewing system. Despite its strengths as a global brand, as an industry, as a world leader and as a company, we are facing a huge risk that we cannot continue to meet our future growth potential or growth while we grow our business on our own.We need to recognize that our current portfolio of small and regional breweries, based in Germany and around the world is not strong enough for our growth potential, and that our existing and expanding production networks are not sufficient for our growth potential, and that our regional brewers and distributors already have limited business opportunities to grow with those new and growing brands. It is our challenge to grow our company and its growth networks by leveraging a strong brand and strong global distribution model. The more we do over the long term, the less we can rely on new and better-designed collaborations and joint ventures and continue to grow our business as