I.

Nature of the Company

- San Miguel Corporation

II. Nature of Business or Products/Service offered

- San Miguel Corporation (SMC) is one of the Philippines’ largest and most
diversified conglomerates, with revenues equivalent to about 4% of the country’s
GDP in 2020. Originally founded in 1890 as a single product brewery in the
Philippines, SMC today has highly integrated operations with ownership in
market leading businesses and investments in various sectors, such as
beverages, food, packaging, energy, fuel and oil, infrastructure, property
development and leasing, cement, car distributorship and banking services. SMC
has a portfolio of companies that is interwoven into the economic fabric of the
Philippines, benefiting from, as well as contributing to the development and
economic progress of the nation.

III. Owners/majority shareholders

- Ramon S. Ang
President and Chief Operating Officer

IV. Vision Statement

San Miguel Corporation’s Vision :
- We are San Miguel. Guided by a strong sense of social, environmental and
economic responsibility, our businesses will lead efforts to deliver on national
goods, setting the pace of progress in the Philippines.

V. Mission Statement
San Miguel Corporation’s Mission:
- To provide goods and vital services within the reach of every Filipino, making
everyday life a celebration.

VI. Mission Statement Analysis

 Component Specific phrase or statement Recommendation

The Mission statement of

San Miguel Corporation give
every single Filipino the best
that they can offer to make
everyday life a celebration.
They are passionate about
1. Customers “every Filipino” their brands, products and
services. They are also a
positive force in
communities.

San Miguel offers a

products that are good for
“help people enjoy and consumers, good for the
make progress in their lives people that produce them,
through the many products and good for the planet.
2. Products or services and services that our they make sure that the
company offers “ source our their products
are responsibly.

San Miguel are known for

3. Markets The mission statement does not
the largest and diversified
mention any of the markets.
conglomerates they protect
 the market on which they
rely on. They are driven to
create food and beverage
products that encourages
consumers to make
healthier choices.
And also advance circular
economy solutions in their
production processes.

San Miguel works on the

innovation that lends agility
and it is driven by in their
understanding of what their
customers and stakeholders
need. They invest in digital
solutions to improve
The mission statement does not
4. Technology traceability, understanding
mention any about technology.
that digital disruption can
contribute greatly to
projected revenue and profit
growth.

“provide goods and vital “Reach every Filipino,

5. Concern for survival, growth
services within the reach of making everyday life a
and profitability
every Filipino, making celebration, they conduct
everyday life a celebration.” thorough social and
environmental assessments
 when planning our projects
to allow us to identify
impacts that might arise
from our activities.
They also identify actions
and mitigation measures
that address the impacts to
communities and the
environment, and implement
these in project design and
construction.

The company believes that

doing what we’ll say we’ll do
“ the reach of every Filipino,
and acting with honesty,
making everyday life a
fairness and integrity. They
6. Philosophy celebration”.
will give every single person
the best that they can offer.

Making everyday life is one

7. Self-Concept “making everyday life”
of the core of the mission of
San Miguel because
they support projects that
matter to the local
communities where they
operate and they set
improvement targets for
their operations that will
 reduce greenhouse gas
emissions significantly over
the next two decades.

As a company, San Miguel

Corporation invests in social
projects not only because it
makes good business
“every Filipino, making
sense, but because they
everyday life a celebration”.
believe the private sector
8. Concern for public image
needs to do its part. If the
cities and communities they
will serve are thriving, San
Miguel will thrive too.

They concern for employees

because they provide
everyone who produces
The mission statement does not
their products fair wages
9. Concern for employees mention any concern for
and proper working
employees.
conditions.

Opportunities Threats
1. New ventures for the 1. Effectiveness of
company. diversion plans.
2. The company can 2. Large loss of money
merge into non-allied due to large market
businesses. share.
3. The company can 3. Losing of other
engage into more contracts due to credit
profit oriented rating downfall.
 businesses. 4. Wrong evaluation of
4. Successful diversion plans.
plans. 5. Other competitors
5. Their product and
services was
expanded.
Strengths S-O Strategies S-T Strategies
1. It is already globally 1. Using San Miguel 1. San Miguel can use
and internationally Corporation strengths two approaches
known. to consolidate and building on present
2. It is a large group of expand the market strengths, or analyze
company. position. (S5, O5) the trend and build
3. The company is 2. Aim to achieve processes to two
diverse into non-allied economies of scale pronged market
businesses. and implement penetration approach.
4. The market share returnable bottle (S4, T1)
leadership. system. (S3, O4) 2. Changes in
5. They have the strong 3. Entry of new and consumers
financial position. existing domestic and preferences or
local producers of purchasing power (S2,
other alcoholic T5)
beverages which are 3. Maintains strong cost
close to beer. (S1,O1) of leadership and
ability of the largest
shareholders to
influence corporate
actions. ( S2, T3)
Weaknesses W-O Strategies W-T Strategies
1. The company has a 1. Building strategies 1. San Miguel should
large market share. based on consumer just get out of these
2. The company suffered oriented product business areas and
from a credit rating development and focus on strength and
downfall. marketing approach. threats box, or on
3. Dynamic market (W1, O1) weakness and
environment. 2. Increase Product opportunities box.
4. Losing its international visibility through (W3,T3)
assets. promotions and 2. Expand to countries
5. They have no online persuasive selling and with lower excise of
presence. trade incentives. (W2, taxes. (W1,T2)
O3)

The table above shows the TOWS Matrix for San Miguel Corporation. San Miguel
Corporation is one of the oldest and largest companies in the Philippines. Strengths are
San Miguel capabilities and resources that it can leverage to build sustainable
competitive advantage in the market place. The product quality can help to further
increase its market share as the current customer are extremely loyal to it. While on the
Weaknesses it is the areas, capabilities or skills on which San Miguel lacks.
Opportunities of San Miguel can leverage this trend to reduce the number of offerings in
the market and focus on the marketing efforts on only successful products. Lastly,
threats of San Miguel hedge the risk against the industry where there is a culture of
sticky prices.

Opportunities Threats
6. New ventures for 6. Effectiveness of diversion
the company. plans.
7. The company can 7. Large loss of money due to
merge into non- large market share.
allied businesses. 8. Losing of other contracts due
8. The company can to credit rating downfall.
engage into more 9. Wrong evaluation of plans.
profit oriented 10. Other competitors
businesses. 11. Risks of inability to meet
9. Successful surges in demand and
diversion plans. shortages.
10. Their product and 12. Entry of new and existing
services was domestic and local producers of
expanded. other alcoholic beverages which
11. Increasing social are close substitutes to beer.
media and internet
penetration of
Filipinos.
12. Filipino’s Drinking
Culture

Strengths S-O Strategies S-T Strategies

6. It is already globally and 4. Using San Miguel 4. San Miguel can use two
internationally known. Corporation approaches building on
7. It is a large group of strengths to present strengths, or analyze
company. consolidate and the trend and build processes
8. The company is diverse expand the to two pronged market
into non-allied market position. penetration approach. (S4,
businesses. (S5, O5) T1)
9. The market share 5. Aim to achieve 5. Changes in consumers
leadership. economies of preferences or purchasing
10. They have the strong scale and power (S2, T5)
 implement 6. Maintains strong cost of
returnable bottle leadership and ability of the
system. (S3, O4) largest shareholders to
influence corporate actions.
3. Entry of new and ( S2, T3)
existing domestic 7. Aim to achieve economies scale
and local and implement returnable bottle
financial position. producers of other system ( S4, T2)
11. Strong and popular brand alcoholic 8. Establish an Extensive and
portfolio supported by beverages which Efficient Distribution System
high quality products are close to beer. Coverage ( S3, T4)
12. Maintains a strong cost (S1,O1)
leadership position and 4. Capture a large
expansion of coverage position of the
area. industry growth.
(S1, O2)
5. Market
Development
expand areas
currently
undeserved (S1, S2,
O2)

Weaknesses W-O Strategies W-T Strategies

6. The company has a 3. Building strategies 3. San Miguel should
large market share. based on consumer just get out of these
7. The company suffered oriented product business areas and
from a credit rating development and focus on strength and
downfall. marketing approach. threats box, or on
8. Dynamic market (W1, O1) weakness and
environment. 4. Increase Product opportunities box.
9. Losing its international visibility through (W3,T3)
assets. promotions and 4. Expand to countries
10. They have no online persuasive selling and with lower excise of
presence. trade incentives. (W2, taxes. (W1,T2)
11. The sales are price O3) 5. Vertical Integration-
elastic. 5. Use of segmented Backward Integration (
12. Dependence on pricing strategy ( W3, W7, T2)
trademarks and O2) 6. Horizontal Integration
proprietary rights 6. Maximize growth (W6, T5)
opportunities by 7. Tarnished Reputation
expanding (W4, T5)
international and offer
more diversified
 products that match
the culture and taste
of perspective foreign
markets. ( W7, O6)
7. Increase product
visibility through
promotions and
persuasive selling and
trade incentives ( W4,
O3)

The table above shows the TOWS Matrix for San Miguel Corporation. San Miguel
Corporation is one of the oldest and largest companies in the Philippines. Strengths are
San Miguel capabilities and resources that it can leverage to build sustainable
competitive advantage in the market place. The product quality can help to further
increase its market share as the current customer are extremely loyal to it. While on the
Weaknesses it is the areas, capabilities or skills on which San Miguel lacks.
Opportunities of San Miguel can leverage this trend to reduce the number of offerings in
the market and focus on the marketing efforts on only successful products. Lastly,
threats of San Miguel hedge the risk against the industry where there is a culture of
sticky prices.

For Strengths- Opportunities it is the development of the products.

For Strengths- Threats, there’s a need to improve the products.

For Weaknesses- Opportunities, it is for the competitors.

For Weaknesses- Threats, is having a new plan and promoting the product.

2. From the TOWS Matrix, sort the strategies:

a. according to levels: Identify whether these are corporate, business or

operational
Levels of
Strategies from TOWS Matrix Explanation
Strategy
  Capture a large position of the industry
growth. (S1, O2)
 Using San Miguel Corporation the company’s competitive
strengths to consolidate and expand advantage and strong large
Corporate
the market position. (S5, O5) position in the industry to devise a
Strategy
 Expand to countries with lower excise strategic plan to create
of taxes. (W1,T2) opportunities for growth.

 San Miguel should just get out of San

Miguel can use two approaches
building on present strengths, or
analyze the trend and build processes
The company will improve and
Business to two pronged market penetration
open an opportunities to satisfy
Strategy approach. (S4, T1) the needs of the business.
 Changes in consumers preferences or
purchasing power (S2, T5)

 Maintains strong cost of leadership

and ability of the largest shareholders
to influence corporate actions. ( S2,
T3)
 Aim to achieve economies scale and A new strategy where been
Functional implement returnable bottle system ( S4, implemented. As to achieve and
Strategy T2) implement a strong corporate
 Increase Product visibility through actions.
promotions and persuasive selling and
trade incentives. (W2, O3)

b. according to type: refer to the types in your modules.

Type of
Strategy Explanation
Strategy
 Establish an Extensive
and Efficient
Distribution System
Coverage ( S3, T4)
Integration The integration strategies it integrates activities that
 Market Development
Strategy maximize profit and reduce cost.
expand areas currently
undeserved (S1, S2,
O2)

Intensive 8. ● Vertical San Miguel Corporation is one of the oldest

Strategy Integration- and largest companies in the Philippines. San
 Backward
Integration ( W7, T2) Miguel capabilities and resources that it can
9. Horizontal leverage to build sustainable competitive
Integration (W6, T5) advantage in the market place. The product
quality can help to further increase its market
 Tarnished share as the current customer are extremely
Reputation (W4, T5) loyal to it.

 Maximize growth
San Miguel can leverage this trend
opportunities by expanding
to reduce the number of offerings in
international and offer more
the market and focus on the
diversified products that
marketing efforts on only
match the culture and taste
Diversification successful products. Lastly, San
of perspective foreign
Strategy Miguel hedge the risk against the
markets. ( W7, O6)
industry where there is a culture of
 Increase product visibility
sticky prices.
through promotions and
persuasive selling and trade
incentives ( W4, O3)
Defensive There were no strategy relevant to There were no strategy relevant to
Strategy Defensive Strategy Defensive Strategy

San Miguel’s Vision Statement: We are San Miguel. Guided by a strong sense of social,
environmental and economic responsibility, our businesses will lead efforts to deliver on
national goods, setting the pace of progress in the Philippines.

San Miguel’s Mission Statement: “To provide goods and vital services within the reach of
every Filipino, making everyday life a celebration.

The San Miguel Corporation give every single Filipino the best that they can offer to
make everyday life a celebration. They are passionate about their brands, products and
services. They are also a positive force in communities. It offers a products that are
good for consumers, good for the people that produce them, and good for the planet.
they make sure that the source our their products are responsibly.
San Miguel are known for the largest and diversified conglomerates they protect the
market on which they rely on. They are driven to create food and beverage products
that encourages consumers to make healthier choices. And also advance circular
economy it works on the innovation that lends agility and it is driven by in their
understanding of what their customers and stakeholders need. They invest in digital
solutions to improve traceability, understanding that digital disruption can contribute
greatly to projected revenue and profit growth. The company believes that doing what
we’ll say we’ll do and acting with honesty, fairness and integrity. They will give every
single person the best that they can offer. Making everyday life is one of the core of the
mission of San Miguel because they support projects that matter to the local
communities where they operate and they set improvement targets for their operations
that will reduce greenhouse gas emissions significantly over the next two decades.