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Case Study

San Miguel Corporation (SMC) was established in 1890 as Southeast Asia's first brewery. By the 1920s, SMC's San Miguel Beer had become an iconic brand across the region. Since then, SMC has expanded its portfolio of beverage, food, and packaging products. It has also diversified into industries like power, mining, tollways, and airports. The case study aims to identify opportunities for SMC's expansion, criteria for acquiring new business units, and reasons for its subsidiary organizational structure.

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pao nisan
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394 views8 pages

Case Study

San Miguel Corporation (SMC) was established in 1890 as Southeast Asia's first brewery. By the 1920s, SMC's San Miguel Beer had become an iconic brand across the region. Since then, SMC has expanded its portfolio of beverage, food, and packaging products. It has also diversified into industries like power, mining, tollways, and airports. The case study aims to identify opportunities for SMC's expansion, criteria for acquiring new business units, and reasons for its subsidiary organizational structure.

Uploaded by

pao nisan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Background of the Case Study

Established in 1890, La Fabrica de Cerveza de


San Miguel, Southeast Asia’s first brewery produced
and bottled what would eventually become one of
the bestselling beers in the region. Within the span
of a generation, San Miguel Beer would become an
icon among beer drinkers.
By 1914, San Miguel Beer was being exported
from its headquarters in Manila to Shanghai, Hong
Kong and Guam. A pioneer in Asia, San Miguel
established a brewery in Hong Kong in 1948, the
first local brewer in the crown colony.
Statement of the Problem

The main goal of the study is to specifically answer


the following questions which are the focal
problems of the study:
1. What are the “possible opportunities” that the
company can venture?
2. What criteria should be used by SMC in
acquiring new business unit?
3. Why was a subsidiary within a subsidiary set up?
As was the case with Philippine Beverage, rather
than a direct SMC subsidiary? Why not
transform SMC into a holding company instead?
Objectives of the Case Study
As such this case study aims to accomplish the
following objectives:
1. Give the corporate identity of the SMC as well as
the nature of its core businesses, and the
“possible opportunities” that the company can
venture;
2. Identify criteria should be used by SMC in
acquiring new business unit;
3. Assess the reorganized structure of SMC as
outlined for instance; based on a “subsidiary
within a subsidiary” set up.
Facts of the Case

1. Given the corporate identity of SMC as well as the


nature of its core businesses, what are the “possible
opportunities” that the company can venture?
San Miguel Corporation has since expanded its
portfolio to produce a wide range of popular beverage,
food and packaging products which have–for over a
century–catered to generations of consumers’ ever
changing tastes. It has also diversified into heavy
industries including power and other utilities, mining,
energy, tollways and airports.
Facts of the Case
2. What criteria should be used by SMC in acquiring
new business unit?
The following are the general criteria that the SMC
needs to consider in the operation of their new
business unit:
1. Value
2. Diversify
3. Synergies
Facts of the Case
3. Assess the reorganized structure of SMC as outlined
for instance; why was a subsidiary within a subsidiary set
up? As was the case with Philippine Beverage, rather than
a direct SMC subsidiary? Why not transform SMC into a
holding company instead.
The SMC was a ‘subsidiary within a subsidiary’ set
up because it is a parent company that has several other
subsidiaries. The subsidiary businesses of SMC are
separate legal businesses and they can be publicly traded
company. The SMC is the parent company that exercises
over the subsidiaries that depends on the management
style of the SMC’s executive and the share ownership
structure.
SWOT Analysis

The SWOT analysis provides with an opportunity to


examine the internal strengths and weaknesses the
new business opportunities for SMC that must be
addressed. It also aims to examine the
opportunities presented to SMC as well as potential
threats.
1. Strength
2. Weaknesses
3. Opportunities
4. Threat

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