Description
San Miguel Corporation is one of the oldest and largest companies in the Philippines. In its 100 year history, it has established a clear leadership position in the Philippine beer industry, as well as having made successful forays into other related and unrelated product areas. In the late 2000s, Eduardo Cojuangco, the CEO of San Miguel Corporation, which was South Asia's largest food and beverage company, found himself in a quandary. Cojuanco wanted to move San Miguel into industries that had scale and good future growth possibilities, to build leadership positions in key industries that would drive growth not just for San Miguel but also for the Philippines. At the same time, San Miguel Corporation would reverse its international expansion plans. The case involves discussion of this strategy, tracing issues of internationalization versus a domestic product focused growth in non-allied businesses in the Philippines, such as energy, mining, infrastructure and other utilities.The case is part of the Beer Cases series: Anheuser-Busch InBev (9B11M124), Groupo Modelo (9B11M125), Tsingtao Brewery (9B11M126), San Miguel and Thai Bev (9B13M065).