San Miguel Corporation

Case Study

of

San Miguel Corporation

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Leo Marlon Morala

1. NAME OF THE COMPANY

San Miguel Corporation

1. CURRENT PERFORMANCE

1. Case Profile

1. Don Enrique Ma Barretto y de Ycaza establishes a brewery in Manila called La Fabrica de Cerveza de San Miguel

1. The brewery is incorporated

1. Andres Soriano y Roxas joins San Miguel, beginning the long-term, multigenerational involvement of the Soriano family

1. Company expands into nonalcoholic beverages with opening of the Royal Soft Drinks Plant

1. Production of ice cream begins at the Magnolia Ice Cream Plant

1.  Miguel becomes the first non-U.S. national Coca-Cola bottler and distributor

1. Company shortens its name to San Miguel Corporation

1. Soriano family proxy fight leads to the purchase of a 19.5% stake in San Miguel by Eduardo Cojuangco, Jr., a close associate of Philippine dictator Ferdinand Marcos
2. Cojuangco assumes the chairmanship of San Miguel

1. “People Power” revolution forces Marcos to flee the country; Cojuangco is among those joining him in exile; the new Philippine government sequesters 51.4% of the company shares; Andres Soriano III resumes the company chairmanship
2. San Miguel purchases majority control of La Tondeña Distillers, Inc., the leading producer of hard liquor in the Philippines

1. San Miguel exchanges its 70% stake in Coca-Cola Amatil Limited (CCA)
2. Cojuangco returns to the chairmanship following the election of Joseph Estrada to the Philippine presidency

1. Pure Foods Corporation, producer of processed meats and flour, is acquired; San Miguel joins forces with the Coca-Cola Company to reacquire Coca-Cola Bottlers Philippines, relinquishing its stake in CCA as part of the deal
2. The company acquires Cosmos Bottling Corporation; Kirin Brewery Company, Limited acquires a 15% stake in San Miguel
3. Litigation continues over the 47% of the company shares still sequestered by the government

1. Problems

• The battles for corporate control arises
• “family feud” arises to the stakeholders of San Miguel Corporation
• Environment-concerned Groups wants to stop the  coal-mining operation in Cotabato

1. Plans

• Joint venture to different companies
• To invest in different companies which can help uplift the corporation

1. STRATEGIC POSTURE

1. Mission/ Vision

• Passion for Success

• Constantly strive for excellence.
• To be the best they can be and create value in everything they do.
• To be proactive and entrepreneurial, propelled by a sense of urge, competitiveness, and total dedication to results.

• Teamwork

• Trust and respect for each other and with unity in purpose, they will look toward our shared aspirations, transcending boundaries along functional and organizational lines.

• Respect for our people

• Recognizes the employees as individuals and are committed to nurturing each individual capability.
• Uplift the dignity of labor by encouraging their people to be at their best in their fields.
• Committed in creating a work environment that encourages open communication, camaraderie and professional growth.

• Customer focus

• Customers’ preferred choice and choose their products and services above others

• Innovativeness

• Encourage creativity and ingenuity in the processes and systems, products and services.
• Forever looking for ways to outdo themselves, always striving to be first to anticipate consumer needs, and deliver something better.

• Integrity

• Guided by what is ethical, fair, and right.
• Believes in profit with honor and are committed to good governance and the highest moral standards.

2. Objectives

• Expansion of the company to different countries
• To head off encroaching competition from the biggest breweries
• To define the aspirations through the hopes and goals
• To have different branches around the world
• To be the No.1 manufacturer of goods in the Philippines

        3. Strategies

• Joint venture to different companies
• Qualify prospective partners and suppliers
• Keep fully up to date on your competitors business structure, strategy and prospects
• Promoting the “OKTOBERFEST”

        4. Policies

• Securities Regulation Code
• Exercise independent judgment
• Act judiciously
• Observe confidentiality
• Comply with the principles of good corporate governance

1. STRATEGIC MANAGERS

1. BOARD OF DIRECTORS

Eduardo M. Cojuangco        Chairman of the Board

                                Chief Executive Officer

Ramon S Ang                        Vice Chairman of the Board

                                President

                                Chief Operating Officer

Ferdinand K. Constantino        Chief Financial Officer

                                Senior Vice President

                                Treasurer

Francisco S. Alejo                President of San Miguel Pure Foods

                                Company

                                Director

Carlos Berba                        President of the San Miguel Beer Division

Roberto N. Huang                President of San Miguel Beverages, Inc.

Gerardo C. Payumo                President of Ginebra San Miguel, Inc.

Ferdinand A. Tumpalan        Chairman and President of San Miguel

                                Packaging Specialists, Inc.