Gizelle Anne Canlas

BSBA

For generations, San Miguel has generated strong consumer loyalty through brands that
are among the most formidable in the Philippine food and beverage industry – San Miguel Pale
Pilsen, Ginebra, Monterey, Magnolia, and Purefoods. Flagship product, San Miguel Beer, holds
an over 95% share of the Philippine beer market. In addition to its leadership in the Philippine
food and beverage industry, San Miguel has established a significant presence overseas. The
Company’s operations extend beyond its home base of the Philippines to China (including Hong
Kong), Vietnam, Indonesia, Malaysia, Thailand and Australia.

San Miguel Corporation has a functional structure, meaning it has one boss only. Linking
this with their objective which is to help people enjoy and make progress in their lives through
the many products and services that our company offers. With this structure, San Miguel
Corporation offers : food, beverage, packaging, fuel and oil, power and infrastructure which
would take a lot of responsibility for this structure to do. Since it’s functional, they have a broad
target audience since they have a huge variation of products to offer to the market, the skill set of
each employee inside a department is crucial. There many kinds of products they offer so they
must be careful not to waste anything since their brad had established their name over the past
years already. Linking to their products and services, it is important for them to trust their other
subsidiaries, for example, San Miguel Brewery Inc. produces beer and Ginebra San Miguel Inc.
produces domestic hard liquor.

San Miguel Corporation’s structure is Functional, with that they are already experienced
with having a lot of subsidiaries, their company is responsible for the shares of many
corporations, the corporations are their source of profit also. With many shares, shows that there
are a lot of connections coordinating with them. This results to them having the departments take
care of the other stakeholders, it’s a very smart way of getting profit, profit sharing with other
corporations but they must be fair so that they could get enough sales. A good advantage of this
is that they have perpetual life, unending opportunities for profit and money plus they could get
different owners. Adapting from the business culture will help them have more shares since
some corporations would be attracted to their company, San Miguel Corporation does a great job
of becoming a reliable source of distributing many products and services to many companies.
The functional structure will have a more efficient workforce in the Philippines.

According to the article I’ve read, corporate governance tends to develop into becoming
an institution, with an entire series of complementary elements. Leaders, shareholders,
stakeholders, legal framework, professionalism, organizational culture, internal control and audit,
sustainability, long-term visions, seriousness, responsibility, etc. The good practices of corporate
governance are mere reflections of the theoretical principles in the actions of various entities. On
the other hand, it is important to stay reasonable and admit that any system, regardless of how
good its intentions are, will always have shortcomings. However, these shortcomings should not
be a hindrance rather they should take on the aspect of a force majeure event.

I’ve learned that in the long run, a future society of responsibility and ethical corporate
governance, in which quantity and tight time limits may become obsolete and replaced by a
constant concern with sustainable growth as a safe way to maximize the value of certain entities,
and to achieve the general interest.