Quezon City Polythecnic University
673 Quirino Highway, San Bartolome
Novaliches, Quezon City

INDUSTRIAL ENGINEERING DEPARTMENT

In partial fulfillment of the requirements for
Electives 1: Strategic Management

Submitted by :

Submitted to
Engr. Aura Marie B. Novesteras
Date:

Table of Contents

I- Introduction
A. Company Profile
a. History
b. Vision/ Mission statement
c. Important events, issues & activities
d. Organizational chart
B. Competitors Profile
II- Industry Analysis
A. External Factors
B. Internal Factors
III- Competitive Analysis : Porteu’s Five Model
IV- Strategy Formulation
A. Present
B. Proposed
C. Strategy Formulation Matrix
V- Strategy Implementation
A. Objectives
B. Recommendation

I- INTRODUCTION
A. Company Profile

HISTORY
San Miguel Brewery Inc. (SMB) is the largest producer of beer in the Philippines, with nine out of ten beer drinkers preferring its brands. San Miguel Beer was first produced by La Fabrica de Cerveza de San Miguel, an upstart brewery in the heart of Manila that began its operations in 1890. It received the Royal Grant from the Spanish king to brew beer in the Philippines, then a colony of Spain. In 1963, the brewery was renamed San Miguel Corp. (SMC) to reflect its growing ventures into food and packaging. As the beer business grew at a steady pace, it provided the foundation from which SMC expanded its interests from food, beverage and packaging, to power, oil, airline and infrastructure. Today, SMC is the country's biggest diversified conglomerate.
All SMB's beer operations were then under the San Miguel Beer Division, a business unit of SMC. SMB was incorporated on July 26, 2007, and the domestic beer business was spun off from SMC to SMB on October 1, 2007. The spin-off of SMC's domestic beer business into SMB was intended to realize the value of SMC's flagship business. In 2010, the acquisition of San Miguel Brewing International Limited (SMBIL) enabled SMB to achieve full integration of its domestic and international beer business. SMB is now at a greater advantage to champion the iconic San Miguel brand across the Asia-Pacific region.
From a single product produced in a single brewery in 1890, SMB has developed an array of popular beer products over the past century, catering to the distinct tastes and preferences of beer drinkers across all segments and markets in the Philippines. Today, it carries a portfolio of ten strong and popular beer brands: San Mig Light, Red Horse Beer, Cerveza Negra, Gold Eagle Beer, San Miguel Strong Ice, San Miguel Super Dry, San Miguel Premium All-Malt Beer, San Miguel Flavored Beer, San Mig Zero, and its flagship brand,
San Miguel Pale Pilsen. These products carry distinct attributes that cater to all segments of the Philippine beer market and have earned international recognition for quality, winning in the prestigious Monde International Selection almost on an annual basis, among other awards and citations.
The Company has six production facilities strategically located across the Philippines to ensure product availability and freshness,and a highly developed distribution system serving approximately 471,000 retail outlets. San Miguel Beer products have consistently dominated the market for beer in the Philippines, the country's largest alcoholic beverage segment. Despite its dominant market position, SMB continues to find new ways to grow further its volumes and its market share in the Philippine beverage industry.
In 2014, as part of SMB's growth strategy, the Company embarked on another beverage segment which has seen promise in the last five years. As an initial endeavor, the Company acquired the non-alcoholic beverage assets of Ginebra San Miguel Inc. in April 2015 after SMB amended its primary purpose in its articles of incorporation, to include the non-alcoholic beverage business. The Company's entry into this new business category is aimed at strengthening SMB's growth performance and competitiveness. This latest venture is also expected to help the Company in expanding its reach in the Philippine market and tap new brands and planned product offerings.
As in the case of its world-class beers, SMB's non-alcoholic products will continue to carry the San Miguel trademark of quality and excellence.
VISION
Our Core Purpose
DRINK TO LIFE
We will lead the growth of the beverage industry, equipped with our more than a century tradition of brewing excellence.
We will be the brand, business partner and employer of choice, delivering superior long-term value to our stakeholders.
We will make accessible in existing and new markets our world-class portfolio of products and services to continuously delight the tastes and preferences of our consumers.
Through our products, every occasion will be a drink to life
. . . a celebration like no other. CHEERS!
MISSION
Our Core Values
SOCIAL RESPONSIBILITY
Inspired by our mother company, San Miguel Corporation, we continue to help the communities where we operate by caring for our environment and contributing to countryside development.
With our collective efforts, we aim to make a difference by helping our countrymen to live a better life.

PEOPLE ORIENTATION
At San Miguel Brewery Inc., every person counts. We empower our people -- our most important asset -- with trust, respect and sense of belongingness.
Our company strength is drawn from our unparalleled teamwork. We are a team like no other because we are one in bringing out the best from each other.
INTEGRITY
As a good corporate citizen, we act according to the rule of law, expand our partnerships with propriety, and grow our business without compromising our values.
As the market leader, we inspire others with our best business practices and strong commitment to ethics.
As part of the San Miguel Brewery Inc. family, we take pride in and patronize our very own products to manifest our loyalty to the company which we call our second home.
We choose to do what is right because we carry the name San Miguel, a name that we pledge to protect all the time.
CUSTOMER DELIGHT
Behind every San Miguel Beer expertly brewed is a valued customer in mind.
We owe our existence to our customers, to whom we commit to serve with topmost priority, consistency and genuine concern thereby earning their seal of confidence.
We remain resolute in our desire to delight them with unique, memorable and toast-worthy experiences.
Our company knows, understands and satisfies the customers better. And nothing rewards us more than keeping their trust and loyalty - generation after generation.
EXELLENCE
We are the best that we can be because we strive to get better each day.
Our dynamism and creativity propel us to take each challenge as an opportunity to bolster our competitive edge.
Together, we are driven to sustain our leadership by enhancing our strengths and creating superior value in everything that we do.
IMPORTANT EVENTS, ISSUES, & ACTIVITY
• SMB BEER DRINKING FINALS WINNER (January 13, 1015)
• Beermen's PBA title kicks off year-long festivities for SMC,
• Bela Padilla is new San Mig Light endorser (April 5, 1015)
• San miguel OKTOBERFEST 2015 (October 21 – November 18 , 2015)
• SMB Wins Anew for Energy Efficiency (2012)
• SMB president bestowed CEO EXCEL Award (September 4, 2014)
ORGANIZATIONAL CHART B. Competitors Profile
a. Asia Brewery Inc. / Lucio Tan