1. ANALYSIS OF SABMILLER'S STRATEGIC POSITION1.1. IntroductionSABMiller is an international company with its main interest in beer production. Understanding SABMiller's strategic position means considering its strengths and weaknesses relative to what is happening in the environment (Robson, 1997, p. 29). Appendix A reflects the prioritization of the basic strategic analysis process.1.2. External Factors Affecting SABMillerAnnex B contains a PEST analysis for SABMiller but since the environmental factors are country specific, it is more effective if performed for all countries of interest.1.2.1. Policy AnalysisGovernments around the world take extreme measures to regulate alcohol because it affects the mind of the consumer. The deal with Miller exposed SABMiller to one of the most regulated industries in the world. Re-establishing consumer loyalty to the Miller brand will be made difficult by factors such as nationalism.1.2.2. Economic AnalysisFigure 1.1 indicates that the Miller acquisition provided a greater balance between a mature, cash-generating market and developing, cash-consuming markets. However, “negative impacts of branding, packaging and geographic mix, rising raw material costs, and rising energy costs make doing business in the United States difficult.” (SABMiller, 2003, p. 8)Figure 1.1(http://www.sabmiller.com)1.2.3. Social AnalysisSABMiller regularly evaluates its alcohol policy to ensure responsible advertising, packaging and promotions and that minors are not targeted. They recognize their social responsibility towards HIV/AIDS and provide support and training focused on disease prevention.1.2.4 . Technology Analysis"Technology development...... middle of the paper...... when suppliers are able to increase prices or reduce the quality of the inputs they supply. SABMiller makes it difficult for any other brewery to establish itself on the South African market thanks to the strong bargaining position it has when purchasing its ingredients. "Thanks to the volumes it purchases, it can ensure that suppliers of ingredients, such as hops, look after SABMiller's interests before supplying them to others. company". (Du Plessis et al, 2001, p. 44)1.5 ConclusionThe combination of emerging market growth potential and hard currency earnings through Miller has made SABMiller one of the most diversified players in the industry, but its lack of experience and loss of focus. could be risky in the long run. SABMiller's strategy of growth through acquisitions has put them in a position where the threat of a hostile takeover is now highly unlikely...