SAN MIGUEL CORPORATION

YOUR WORLD MADE BETTER

SWOT Analysis
STRENGTH

1. Strong Brand Equity and Brand Awareness

San Miguel operates in a domestic as well as international market with some of the
most well – known brands.

San Miguel Corporation (SMC), which began as a brewery in 1890, is a Southeast

Asia’s largest publicly traded food, beverage, and packaging company, employing
over 18,000 people in over 100 major facilities across Asia-Pacific. SMC is also one
of the fastest growing conglomerates, with significant investments and new business
projects in oil and fuel, aviation, infrastructure, mining, properties and banking.

Over the years, San Miguel has already build their

strong brand to the Filipino community with their
original product which is the San Miguel Pale Pilsen
Beer that mostly Filipino people trusted and prefer to
drink. Since then, San Miguel continuously enhances
their reputation by innovating new product while
maintaining their originality.

The company’s brands garnered numerous “Monde

Selection Awards”, a prestigious international award-giving body for food and
beverage products, including the highly prestigious “International High Quality
Trophy”, various medals and other special citations.

Recently, San Miguel Corporation

(SMC) has been given the prestigious
“Global Excellence Award” by the
world business organization
International Chamber of Commerce’s
national committee in the Philippines,
with the impacts of the COVID -19
pandemic suffered by many
businesses, the company was able to
 cope up and put efforts to keep the economy of Philippines going by sustaining and
generate more livelihood.

2. Diverse Product Portfolio

San Miguel's product and brand range enables the company to simultaneously target
various segments of the domestic market. San Miguel has been able to diversify its
revenue sources and benefit composition as a result of this.

SMC has a lot of subsidiaries and various business that enables their consumer to
have many options which also made the company gain more profit.

Beer, spirits, non-alcoholic drinks, poultry, animal feeds, flour, fresh and processed
foods, dairy goods, coffee, assorted packaging products, and a variety of refined
petroleum products are all part of the company's product portfolio.

Upon visiting the website of San Miguel Corporation, here are some of the products
offered by the company:

San Miguel Foods division offers a wide

range of quality food products. Home to
many of the Philippines' largest food brands,
some of which are the most formidable
brands in the domestic food industry.

San Miguel Brewery Inc. is the oldest

brewery in Southeast Asia and the
largest producer of beer in the
Philippines.

Ginebra San Miguel Inc. is the world's largest gin producer by volume, the market
leader in Philippines' hard liquor market.
3. Successful Go to Market Track Record

San Miguel has a track record of launching new products in the domestic market and
appealing to a range of markets based on consumer feedback.

The company is perhaps best known for San Miguel Beer, its flagship product, which
is among the top ten beer brands in the world. While brewing is in its heritage, San
Miguel’s successful brand development has allowed it to diversify to produce a wide
range of popular beverage and food products which have catered to customers for
over a century.

Philippines is a tropical country which means ice cream is one of the staple food to
relieve from hot weather. Ice cream is a profit generating product especially in
summer season and SMC decided to reenter the original ice cream from the strong
brand of Magnolia.

According to WIPO, Reentering the ice cream

market in the Philippines would have been
prohibitively expensive and difficult if it were not
for the strong brand recognition of Magnolia
products, which was fostered by San Miguel’s
emphasis on creating strong brands. Magnolia was
the leading ice cream for decades in the
Philippines and a part of most parents’ childhood
memories. 

4. Superior Product and Services Quality

San Miguel Corporation is one of the Philippines' largest and most diversified
conglomerates, with highly integrated operations in beverages, food, packaging, fuel
and energy, gas, and infrastructure generating around5.9%* of the country's gross
domestic product (as of 2018).

In its 125 years of brewing excellence, San Miguel Pale Pilsen is the Philippines’ and
Southeast Asia’s oldest beer brand, the flagship brand is likewise among the biggest
selling beer brands in the world. 
San Miguel carries a strong brand portfolio including San Miguel variants San Mig
Light, San Miguel Strong Ice, San Miguel Super Dry and San Miguel Premium All-
Malt as well as other brands such as Red Horse Beer, CervezaNegra, Gold Eagle
Beer, Dragon, Blue Star and Anker Bir, among others. 
Aside from its flagship brand, San Miguel has also built a vertically integrated power
company with a full spectrum of power businesses comprising of IPPA contracts
through holding company SMC Global Power Holdings. Being a vertically integrated
power company gives SMC the opportunity to compete and maximize value in key
segments of the value chain by driving and capitalizing on synergies among fuel
sourcing, power generation and power distribution.

The Sual Power Plant is the largest coal-

fired power plant in the Philippines.
 The Ilijan Power Plant consist of two
blocks with a rated capacity of 600 MW
each. The power plant can also run on
diesel oil stored on site.

The San Roque Power Plant utilizes

the Agno River for power generation
and irrigation and contributes to flood
control and water quality
improvement for the surrounding
region and comprises three power
generation units of 115 MW each.

5. Managing Regulations and Business Environment

San Miguel Corporation is committed to environmental protection and preservation as

a requisite for sustainable development and for long-term socioeconomic benefits to
present and future generations. Thus, SMC actively contributes towards a clean and
thriving environment for the well-being of its communities, employees, consumers
and the nation. Total
Environmental Quality is a
key philosophy which
reflects how SMC sources its
raw materials and
manufactures, packages,
distributes and markets its
wide range of products.

In recent years, along with its

ongoing expansion, San
Miguel has been ramping up
efforts to address major sustainability challenges. In early 2017, it initiated an
ambitious water sustainability program that aims to cut the use of water across all its
businesses by 50% by 2025.
Also in the same year, it discontinued its plastic bottled water to help minimize solid
waste pollution in oceans and other bodies of water.

In 2019, the company announced an initiative to set up a zero-waste

community that will function as a model and an incubator for livelihood
programs.

It also committed to develop a materials recovery and recycling center

 for plastic wastes. The company said it hopes to replicate the facility in many areas in
the Philippines to make small-scale plastic recycling accessible to communities.

SMC even established a weekly Environment Watch in ensuring for the compliance to
the regulations imposed by the authorities in protecting the environment.

6. Strong relationship with existing suppliers

As an incumbent in the industry, Miguel San has strong relationship with its suppliers
and other members of the supply chain. SMC has strategic partnerships with
international companies, among them are Kirin Holdings Company, Limited for beer;
Hormel Foods International Corporation for processed meats; Nihon Yamamura Glass
Company, Ltd., Fuso Machine & Mold Mfg. Co. Ltd. and Can-Pack S.A. for
packaging products; and Korea Water Resources Corporation for its power business.

San Miguel continues to maintain the

strong relationship of their supplier
and now target the local farmers in
the Philippines. San Miguel
Corporation has offered to buy more
produce from local farmers to sustain
income and ensure food production
during the enhanced community
quarantine due to COVID-19. The
company is looking to trade with
more farmers in the country to supply
raw materials for its food products,
help sustain farm incomes in the
countryside, and secure food supply.

Recently, SMC are proud to be collaborating with the Philippine Carabao Center
(PCC) and its farmer cooperatives in making a product that will positively impact the
lives of our local dairy farmers and Filipino youth. Through meaningful partnerships
and innovative programs like this, we believe we can empower our countrymen to
overcome the impacts of the pandemic and create more opportunities to grow in the
future.

7. High Margins

San Miguel Corporation charges a premium compare to its competitors.

 San Miguel Corporation is currently one of the largest companies in the entire world
and the main competitive advantage is the brand San Miguel.

Competitors can build a beer factory exactly like the San Miguel beer factory or offers
higher salary the employees whose currently working for the San Miguel beer factory
but the loyalty of customer who have been buying San Miguel beer since they were
born can imitate by the competitors. San Miguel is the biggest supply chain of well-
known San Miguel Pale Pilsen, which is the most famous and best selling beer in the
Philippines.

8. First Mover Advantage

San Miguel Corporation with their original Pale Pilsen Beer for over 125 years
enables the company to established a strong brand recognition and gained trust and
loyalty from their products or services. This made them to put on edge over their
competitors as they already gathered loyalty.

San Miguel has comparatively few rivals as the world's most valuable Filipino
brand. San Miguel Corporation produces one of the top three beer brands in Asia, as
well as the world's single biggest-selling gin by volume.

Over the next few years, parent company San Miguel Corporation moved
aggressively into areas. Oil refiner and retailer Petron is now the group's single
biggest business and it has interests in infrastructure, public utilities and packaging.
As a result, alcohol contributes only a comparatively small share of group revenues
but the brewery business wholly dominates the Filippino market with over 90% share
through San Miguel itself, Red Horse and Cerveza Negra.
Sister company Ginebra San Miguel is the leader in the Philippine distilled spirits
market. Its namesake brand is the world's biggest selling gin by both volumes - 28m
cases in 2019 - and retail value. 

San Miguel Foods is one of the country's biggest food producers, with brands
including Purefoods hotdogs, Magnolia chicken or Monterey ready-to-eat meat
dishes.

These well-known products made San Miguel Corporation have a competitive

advantage against their competitors. The lists of product they release caters the need
of their target market.
9. Robust Domestic Market that San Miguel Operates in the domestic
market

In which San Miguel operates is both a source of strength and a stumbling block to
the company's growth and innovation.

Currently, the Philippine economy suffered

and slow down in 2020 due to the impact of
the COVID – 19 pandemic. A lot of business
had no choice but to stop their operation and
lay-off their employees.

San Miguel Corporation (SMC) led private

sector efforts to help Filipinos, especially
vulnerable communities, medical front line
workers, and the agricultural sector, alleviate
the impact of the pandemic.

As of June 15, SMC’s COVID-19 response

efforts had totaled P13.112 billion.

In the early months of the quarantine phase, the corporation also paid the government
P8.77 billion in advance taxes, concessions, and contractual payments to help ensure
that funds will be sufficient for the government's crucial response to the pandemic.

With the ongoing pandemic, SMC still able to showcase their purpose by being
responsive to the concerns and well-being of their stakeholders.

10. Strong Balance Sheet and Financial Statement

San Miguel Corporation has the opportunity to invest in new and diverse ventures that
will diversify the revenue stream while also increasing Return on Sales (RoS) and
other metrics.

SMC discloses its Financial Position in an

quarterly and annual basis which enable its
stakeholders to monitor the performance of
the company. This will also attract future
investor to engage in SMC by understanding
and overlooking all the relevant and necessary
information. With SMC great amount of
revenue from their various business operation
can invest for new projects to generate profit as well as to provide livelihood to the
community. SMC can also negotiate from other companies or government in handling
a project due to their profound financial standing.

SMC Infrastructure has begun investing in the New

Manila International Airport’s building. The $15
billion airport complex will be constructed on a
2,400-hectare site in Bulakan, Bulacan, just north of
Metro Manila, and will feature four runways, eight
taxiways, and three passenger terminals. It also has
plans to expand to six runways and handle 200
million passenger a year in the future.

By 2025, it is projected to help boost tourism to 30

million visitors per year, create over a million direct
and indirect jobs, and contribute roughly P900 billion
to Philippine GDP.

WEAKNESSES

1. Little experience of international market.

Even though it is a major player in local market, San Miguel has little experience in
international market. According to Roberto Galang, Andrew Delios , Miguel San
needs international talent to penetrate into developing markets. San Miguel
Corporation focuses on domestic part of it.
2. Not unique Products
San Miguel business model can be easily replicated even with the number of
patents and copyrights the company possess. The intellectual property rights are
very difficult to implement in the industry that San Miguel operates in. According
to Roberto Galang, Andrew Delios , Intellectual Property Rights are effective in
thwarting same size competition but it is difficult to stop start-ups disrupting
markets at various other levels.

3. Customer Dissatisfaction
Even though the demand for the products has not gone down but there is a
simmering sense of dissatisfaction among the customers of San Miguel. It is
reflected on the reviews on various online platforms. San Miguel should focus on
areas where it can improve the customer purchase and post purchase experience.

4. Lack of Work force diversity

I believe that San Miguel is not diverse enough given that most of its growth so
far is in its domestic market. According to Roberto Galang, Andrew Delios , this
can reduce the potential of success of Miguel San in the international market.
 5.

Lack of critical talent

I believe that San Miguel is suffering from lack of critical talent especially in the
field of technology; digital transformation. Miguel San is struggling to restructure
processes in light of developments in the field of Artificial Intelligence (AI) and
machine learning.

6. Implementation of Technology in Processes

Even though San Miguel has integrated technology in the backend processes it has
still not able to harness the power of technology in the front end processes. Also,
because we are lacking of higher technology. As an assumption in technology
advancement, it will affect the prices of the product because of the higher cost of
production due to using more improve technology to produce them.
7. Uncompetitive compare to their International Rivalry

Competition was very tough outside, especially from Japan and Taiwan. Most
businesses; weakness was all their competitors especially if you want to become
known internationally. If the company is not competitive they may left behind by
their competitors. The company unable to match the services and products that the
other company can offer in the market and to the consumers known
internationally.
8. The company is not prepared to increase international operations.

Maybe, because of the lack of technology improvements and also because they are
focused on domestic. As we all know, we are still in developing country, it hard to say
that we have limited source when it comes to technology and this was a reason why most
businesses here are not competitive to explore internationally. We are still independent to
other countries on some of the material needed in production.

9.
Large Market Shares
Gains or losses in market share can have significant impacts on a company's stock
performance, depending on industry conditions. Market share is essentially the percentage
of an industry's total sales that the company earns. Changes in market share have a larger
impact on the performance of companies in cyclical industries where there is low growth.
The calculation of market share takes into consideration a company’s total sales over a
 particular time period and the total sales of the industry in which the company operates
over that period.

10. Legal Issues

One of the reasons is because of Legal issues that they are involved in. San
Miguel shares are also involved in the controversial Coco Levy Case
(Sandiganbayan Civil Case No. 33), which is actually subdivided into a total of
eight cases involving different parties and properties. Arguably the most important
case is Case No. 33-F, which involves 51% of the shares of San Miguel. This
majority stake at San Miguel has been further subdivided into three separate
litigations, each of which reaching the Supreme Court in highly contentious
proceedings. The first case involved 4% of San Miguel shares, which, in the case
of San Miguel Corporation vs. Sandiganbayan, was awarded by the Supreme
Court to the government. The second case, Republic of the Philippines vs.
Sandiganbayan and Eduardo Cojuangco Jr., involved a 20% block that the
Supreme Court, voting 7-4, awarded to Eduardo "Danding" Cojuangco. The most
recent High Court pronouncement came early this year, Philippine Coconut
Producers Federation, Inc. (COCOFED) vs. Republic of the Philippines, where the
Court, voting 11-0, declared that the remaining 27% of San Miguel is owned by
the government. (Note: The 27% had been diluted to 24% due the government's
failure to subscribe to the increased authorized capital stock of San Miguel).
 OPPORTUNITIES
1. Emerging international markets.
By emerging international markets San Miguel Corporation has a potential to have a
high growth. The demand for its product will increase because its ability to sell its
product is expanding. It will also acquire a significant market position in other
countries especially when it is the first one who introduced new products in the
consumers.
https://smallbusiness.chron.com/advantages-doing-business-emerging-market-22717.html

2. Technological advancements

Whatever the nature of company is, technology is a big transformer for companies.
Injecting technology to the operation of San Miguel Corporation can saves time in
retrieving and disseminating different information. Another based on what we have
studied in our subject Accounting Information System technology can improve the
products and delivery services of one company. Our professor also share that using a
system generated that automatically trace and counts inventories will improve the
efficiency and effectiveness of the company’s supply chain because their suppliers
has also access to that system. In that case the company doesn’t have to call its
suppliers directly to order inventories. By having technological advancements the
company will increase its productivity with a high quality but in a low cost and can
maintain its comparative advantage.
https://sanmiguelglobal.com/en/new/san-miguel-recognized-technological-innovation
3. Innovation
 By innovating products San Miguel Corporation can surpass its competitors. They
will have a competitive advantage against the other companies. By introducing
something new they will catch the attention and tastes of the market that eventually
lead them to have a large share in a market. Also, Porter’s National Competitive
Advantage Theory says that competitiveness business segment depends on innovative
items, processes etc. https://www.scielo.br/scielo.php?pid=S0104-
530X2016000200397&script=sci_arttext&tlng=en

https://www.fogatagroup.com/news/how-companies-use-innovation-to-create-a-
competitive-advantage/

4. Brand Expansion
Brand expansion will give an opportunity to business not only to attract customers
internationally and gain higher returns or profitability but also to establish a greater
brand recognition to other countries.
5. Social Media Websites
Social media growth can help San Miguel Corporation to reduce its cost to advertise
its products while reaching large viewers. It also quickly spread the news about the
upcoming events and to dispel rumors about the company.
https://embapro.com/frontpage/swotcase/3472-miguel-san

6. Alliance with the other firms

Having a business alliance allows San Miguel Corporation to penetrate new market.
By allying to a well- established company that already captured the target market of
San Miguel, SMC can quickly enter that market without using a lot of its resources
because another advantage of having an alliance allows to access and share the
expertise and knowledge of each other to a specific situation.
https://smallbusiness.chron.com/advantages-business-alliances-22151.html

7. Covid-19 Pandemic
San Miguel Corporation offers new product in the amidst of Covid 19 pandemic and
this is the alcohol disinfectant that is essential to everyone. In fact, San Miguel
Corporation increased its production of ethyl alcohol to 100, 000 liters per day to
further serve the needs of front liners cities and provinces nationwide in the fight
against the virus. In addition, one of its subsidiaries namely San Miguel Yamamura
 Packaging Corporation manufactures and sells metal cans that are also needed in
producing can goods products which is one of the basic needs of the people and is
usually distributed by the local governments and those who has a good heart to them
in the middle of the pandemic
https://www.sanmiguel.com.ph/article/smc-ups-alcohol-production-to-100000-liters-
daily-for-covid-19-front-liners

8. Lack of Competitors
Based on our research San Miguel Corporation has a few competitors especially in the
Philippines. Despite the adverse effects of the lack of competition in the market it
could still be an opportunity for them to improve their services and products even
more. If they don’t have too many competitors the market will have a bigger space for
them to have a valuable market position. Also if there are no new entrants in the field
of their business it only proves that it is difficult to match their standing in the market
and they are not that strong to gradually gain a position in the market.
9. Increasing Standardization

San Miguel Corporation can exploit this trend to reduce the number of offerings in the
market and focus the marketing efforts on only the most successful products.
Standardization also helps the corporation to ensure safety, interoperability, and
compatibility of goods produced and ensures that the end product has consistent
quality and that any conclusions made are comparable with all other equivalent items
in the same class. Its goal is to ensure uniformity to certain practices within the
industry. If SMC will use it well the first and most obvious benefit that they can gain
is that it decreases the potential for ambiguity and guesswork. With a clear set of
instructions to work from in order to complete a task, employees will spend less time
trying to figure it out and more time actually doing it. It can also guarantee quality
because work is done in a pre-defined and optimize way, boost productivity because
the employees won’t need to ask around or comb documentation to get answers,
increase employee morale because employee scan take pride in having mastered the
process and refined their skills, improves clarity because a standard process will
eliminate the need for guesswork or extra searching and leads to have perfects
customer service because every ticket is handled in the best possible way.
Standardization among manufacturing businesses ensures that customers get similar
products regardless of the manufacturer or geographical location of the store where
customers buy from.
10. Increasing population

The exponential growth in the population particularly in the existing or potential

customer segments is a great growth opportunity for the business organizations
because changes in population size will impact the consumer market potential. If the
population grows there is a greater demand especially most of the products offered by
San Miguel Corporation are included in the basic needs of human in daily life. Also
SMC will have an opportunity to market it products in a bigger variety of consumers.
According to Professor Ng Yew Kwang of Nanyang Technological University a
larger population will provide better business opportunities, a bigger market and more
talent.

https://www.straitstimes.com/business/economy/population-more-people-bigger-
market-more-options
 THREATS
1. Competitors

Beer in the Philippines is mainly produced by the two large breweries: San Miguel

Corporation, which produces San Miguel Pale Pilsen, and Asia Brewery, the second-
largest brewery in the country. Asia Brewery, San Miguel Corporation's main rival,
markets well-known foreign brands such as Colt 45 under license, as well as
Heineken, Tiger beer, and Asahi Super Dry for distribution.
Knowing who your rivals are and what they have to offer will help you stand out with
your own goods, services, and marketing. It will allow you to set competitive prices
and respond to competitor marketing strategies with your own initiatives. You can use
this information to develop marketing campaigns that capitalize on your competitors'
weaknesses while also improving your own company's efficiency.

2. Economic and Political Relation between countries

San Miguel Corporation have more than 100 major facilities in the Philippines,
Southeast Asia, China, Australia, and New
Zealand. San Miguel Brewery a subsidiary
of the corporation completely dominates its
domestic market in the Philippines, with a
market share of around 91%.The company
has four breweries in China, including
Hong Kong, where it also the leading
brewer. 

(San Miguel Baoding Brewery, China)

At this time, we know that the Philippines and China

are at odds over their respective claims to the
Scarborough shoal. Diplomatic tensions between
countries may result in the termination of trade
agreements and the enforcement of trade embargoes, putting your exports on hold or
subjecting them to high tariffs.

3. Purchasing Power of Customers

A business needs to understand the buying power of consumers in its target market
groups. When you first go after a market, you want to ensure that customers can pay for
your goods and services at price points that earn you a profit. But fortuitous events such
as the pandemic could affect the ability of a person in consuming goods.
According to the statistical report of the Philippine Statistics Authority in the
unemployment rate in the Philippines. There is a strike of increase in the number of
Unemployed people due to the pandemic. Unemployment leads to a lack of source of
income that would affect their purchasing power which will be unfavorable for the other
business. People need to budget their income and cut off procurement of unnecessary
goods such as alcoholic beverages. This changes in consumer buying behaviour leads to
loss of the business.

4. Economic Slowdown
 Based on the statistical report of PSA, The Philippines' economy entered its worst
postwar recession in 2020, owing to the COVID-19 pandemic, which was intensified
by a series of natural disasters, including the eruption of Taal Volcano and a string of
powerful typhoons, which caused problems on both lives and livelihoods.

A lot of business was forced to temporarily decrease their number production as there
is low demand in the market, and some also stop their operation due to decrease in the
number of their customers that leads to lower revenue.

Economic decline characterized by rising unemployment and decreased spending and

economic output that affects business cashflows. Firms will see a fall in demand and
lower profits. Some firms may start to make a loss and go bankrupt. With reduced
cash flow and decreased demand often comes the need for changes with your
business and do things differently in the operation of the business.

5. Changes in Government Regulations

Amendment in government policies could also be a threat in all type of business.
Government can control these for profit organization through imposing taxes.

In January 1, 2020, the Republic Act No. 11467 increased the excise tax was imposed
on alcohol products. Excise taxes generally result in higher prices for consumers,
reducing demand for taxed products. This was imposed by the government to reduce
the consumption of Reduce Tobacco, Alcohol, and Sugary Beverage Consumption to
improve the health of people.
 6. Uncontrollable Events such as natural Disaster
Disasters can have serious negative effects for many businesses, it can be
man-made or natural catastrophe. Natural disasters include wildfires,
floods, earthquakes, hurricanes, and other similar events. With this
unexpected occurrence, supply chains may be disrupted, workers will be
unable to report to work, and critical facilities or equipment will be
destroyed. That is why, for companies, preparing for natural disasters
should be just as important as developing a proactive growth strategy for
the future.

(San Miguel Yamamura Packaging Incident)

An example of this one is when the San Miguel Yamamura Packaging

Corporation warehouse was razed by fire in February 2020, where they've
reported an estimated loss of ₱ 1.2 billion. Further have revealed that the fire
was caused by metal grinding and welding works of their operation.

7. Product Substitution

Items that can satisfy the same consumer needs are referred to as product
substitutions. If you're thirsty, for
example, you can drink water, soft
drinks, tea, or coffee to quench
your thirst. If a product's price
increases, the substitution effect
occurs, resulting in a drop in
revenue due to buyers moving to
cheaper alternatives.
 A product's market share may be lost for a variety of reasons, but the
substitution effect is simply due to thriftiness. Some customers would
choose a cheaper option if a company increases its price.

8. Threat of new entrants

When a new company enters your market, the variables that affect your
company's success change, and you must respond in order to keep your
position. How the new company overcomes internal entry obstacles will
help you formulate a strategic response to the new situation. As the
market changes, you have to take into account the strengths of the new
entrant when forming a strategy to keep your customers.

The entry of a new competitor in a market tends to reduce the market

prices. When there are more companies competing for the same market
share, customers choose those with lower pricing, and the general price
level goes down.
 9. Changes in consumer’s taste and preferences

Consumer behavior changes all the time, depending on

the economy, disposable income, emotions, and
seasonality. Businesses also create advertising
campaigns based on well-known factors and then use
the data to create their revenue-generating campaigns.

For me, great advertisement of imported products is

one of the reasons why people keep changing their
purchasing behavior. An example of this one is the
domination of Korean culture, a lot of people all over
the world are fond of Korean idols and Korean dramas
which boost their entertainment industry. This also
gives way to introduce their products to people around
the world. Now, Korean stores could be seen
anywhere in our country which sells popular Korean
products like ( Bae Suzy , Kpop Idol)
the alcoholic beverage Soju.

10. Raw materials / Supply Shortage

There are a variety of products and businesses
that the San Miguel Corporation has,
specifically, the beverage, food, packaging,
fuel, and oil, and energy businesses,
depending on the availability of raw
materials. Most of these raw materials are
procured from third parties here and abroad.
These raw materials are subject to price
volatility caused by several factors, including
changes in global supply and demand, foreign exchange rate fluctuations, weather conditions,
and governmental controls. Movements in the supply of global crops may affect the prices of
raw materials, such as wheat, malted barley, adjuncts, and molasses for the beverage and food
businesses. Insufficient and delayed supply of materials has significant impact on their
production.