1.

Give five domestic businesses that lasted 10 years or more in the domestic market before
they expanded their business abroad.

a. Why did each of the cited businesses take too long to venture abroad?

SMC

San Miguel Corporation started from a royal grant from Spain and named from
the local suburbs it was established on, San Miguel, Manila in 1890. Focusing on
large beer production, its early success led it to incorporation in 1893 and in the
1900s it ushered in a new era of prosperity after the Philippine Revolution and
American Occupation. While dominant in the Philippines it faced delays in
expansion due to World War I and the Prohibition in the United States. War
caused raw materials shortage and exportation only resumed after the repeal of
the Prohibition. Next, SMC expanded in various businesses like soft drinks, ice
cream, and overseas investments. However, their large-scale expansion program
was once again delayed by another World War; disrupting global operations and
priorities, but post-war, San Miguel intensified its efforts to diversify and grow
internationally.

b. What did they see before? and why weren't they ready?

Early corporations, such as San Miguel Brewery, concentrated on establishing a

strong local presence in the Philippines, primarily in Manila. The reasons for their
delayed venture into international markets were rooted in their emphasis on
dominating the local market, effective processes of incorporation and
modernization, and the obstacles presented by global events like World War I,
Prohibition in the United States, and World War II. These global disruptions and
uncertainties likely influenced the corporations' cautious approach to international
expansion until after the war period, when they embarked on significant
diversification.

c. What did they see today that made them decide to expand their business abroad?

They saw learning opportunities and adaptive strategic shifts towards

international expansion when they were driven by several factors; mainly
expansion in different industries beyond just brewing, domestic competition by
Asia Brewery, global disruptions by World War I & II and Prohibition by the United
States, legal challenges, ownerships and restructuring, and a billion dollar
internationalization program in 1980.

d. Now that they have already penetrated the international market arena, how did they
cope with the nature of international business concepts, which include:

i. International restrictions
 ii. Benefits to participating countries

iii. Large scale operations

iv. Integration of economies

v. Dominated by developed countries

vi. Market segmentation

vii. Sensitive nature

San Miguel Corporation (SMC) demonstrated adaptability in navigating the

complexities of international business and trade. In addressing international
restrictions, SMC strategically engaged in licensing, exporting, and establishing
overseas production facilities, overcoming barriers to entry in various markets.
The corporation recognized the benefits of participating countries through its
strategic alliances and investments, fostering economic development and job
creation. SMC's larger scale of operations was evident through its global
presence, manufacturing plants in multiple countries, and expansive product
offerings. The integration of economies was achieved by forming partnerships
and acquiring businesses worldwide, contributing to global economic
interdependence. While operating in developing countries, SMC balanced its role
by investing in local industries, exemplifying responsible corporate citizenship.
Market segmentation was managed through brand building and tailored
strategies, ensuring products resonated with diverse consumer preferences.
Recognizing the sensitive nature of international business, SMC proactively
engaged in corporate restructuring, strategic acquisitions, and responsive
management practices to navigate geopolitical and economic uncertainties,
contributing to its sustained success on the global stage.

2. What are your takeaways on their experiences domestically that led them to eventually
venture into international market.

In this deep dive into San Miguel Corporation’s evolution, my key insights are; local market
dominance before venturing into international markets, diversification as a growth approach,
strategic adaptability in all aspects more notable towards management and governance, and
lastly, internationalization through licensing, exporting, and establishing overseas presence. San
Miguel's journey showcased the impact of strategic acquisitions, proactive responses to
economic crises, and responsible corporate citizenship.