Understanding Communicable and Non-communicable Diseases

This assignment delves into the distinctions between communicable and non-communicable diseases. It requires students to define each type of disease, provide clear examples, and discuss their underlying causes and potential consequences for individuals and communities.

Strategic Analysis
1

TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
EVALUATION OF THE RELEVANT LEVELS OF THE STRATEGY.............................................3
CRITICAL EVALUATION OF THE KEY STAKEHOLDERS .........................................................4
EXTERNAL ANALYSIS.....................................................................................................................6
INDUSTRY ANALYSIS......................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
2

INTRODUCTION
Strategy is regarded as the plan or course of action which assist organization in accomplishing
its major goals along with objectives. Further, it allowed business to carry out operations in the
competitive environment and in turn acts as development tool for the enterprise. At different levels
strategies are developed and its effectiveness allows company to focus on its overall aims along with
objectives. Further, it is well known fact that presence of effective strategies provides support in
grabbing growth opportunities and in turn delivers long term benefits to the business (Megicks, 2007).
Apart from this with the motive to analyze external environment techniques such as PESTLE and
porter are effective with the help of which businesses are able to know what the external factors are
affecting business operations. Considering the present study organizations such as AB Inbev and SAB
Miller have been considered where recently AB Inbev has merged with SAB Miller and both
companies are working together. In the entire report, strategic analysis of activity such as takeover
through which businesses have obtained large number of benefits. Various tasks have been covered in
the study which involves evaluation of relevant levels of strategy, critical evaluation of key
stakeholders etc.
EVALUATION OF THE RELEVANT LEVELS OF THE STRATEGY
Different types of strategies are present which business undertakes with the motive to enhance
overall performance in the market. At present the strategy of merger employed by AB Inbev is quite
effective where business has merged with SAB Miller (About us, 2016). Both the companies are
operating in beverage industry where Inbev is multinational beverage and brewing firm and holds
around 25% of the global market share. Apart from this, SAB Miller is also a beverage firm and is
regarded as the major bottler of Coca Cola. Both the firms are well known in the market for range of
products it offers to its target market. Further, at different levels strategies have been developed which
has been discussed below: Corporate level strategy: At this level of strategy AB Inbev takes different type of decisions
which are directly associated with the growth and development of business in the market.
Further, it directly assists in accomplishment of desired aims and objectives of the enterprise
(Massingham, 2004). Apart from this decisions are taken in relation with the allocation of
resources through which internal strength of the business enhances. Top management of the
company holds responsibility to take various decisions and this has supported in performing
better. The decision regarding merger has been taken by top authorities of Inbev and this has
allowed company to operate efficiently in the market. Business level strategy: It is the next stage which focuses on different businesses of the firm
3

and each one is treated as separate department. Further, main aim is to determine the
independent product along with market segment (Levels of Strategy., 2015). Apart from this,
product range of AB Inbev is diversified due to which company has segregated its business into
different parts and this in turn has enhanced profitability level. For every brand portfolio
business has developed effective strategies and this has positive impact on the brand image of
enterprise in every possible manner.
 Functional level strategy: The strategy developed under this area allows business to carry out
all the functions in effective manner. Further, it is well known fact that all the operations carried
out by AB Inbev requires presence of effective strategies and due to this reason, business
focuses on each and every functional areas so as to gain large number of benefits with the help
of this. AB Inbev has developed effective plans and objectives are set in relation with allocation
of resources etc. So this directly allows business to serve its customers in better manner
(Friedman and Miles, 2006). In short functional level strategy has assisted AB Inbev to merge
with SAB Miller and both the companies jointly are working with each other. So, the overall
effectiveness of strategies at functional level is allowing company to focus on its goals and
objectives.
So, these are some of the strategies being employed by business at different levels which are
most crucial for the business. AB Inbev focuses on each and every level and this is one of the main
reasons behind success of firm in the market. Organization focuses on each level and this has allowed
in gaining competitive advantage. Strategic choice such as merger has allowed business to serve
different type of markets and products are offered to them as per their expectations. Apart from this,
each and every strategy at different level enhances long term strength of the business and in turn it
becomes easy to deal with the challenges faced in the global market which can reduce efficiency of the
company. In short, through the strategies undertaken at different levels business is able to satisfy need
of its parties associated with it.
Bowman’s strategy clock
This model supports in exploring the options for strategic positioning and helps in highlighting
the brand of business in the market. Eight positions present in this model are as follows:
 Differentiation
 Focused differentiation
 Risky high margins
 Monopoly pricing
 Loss of market share
4

 Low price and added value
 Low price
 Hybrid
Considering all the strategic options, the most appropriate one in case of AB Inbev is Hybrid
where this position takes into consideration some elements of low price and attributes of product
differentiation is also present (Ahmed, 2014). This option is appropriate for business as other
companies are also present in the market who is indulged in the activities of manufacturing bottles for
beverage companies. Therefore, in this case, prices of bottles have to be kept low or moderate and this
supports the firm in satisfying the needs of businesses to which such bottles are sold in the market.
CRITICAL EVALUATION OF THE KEY STAKEHOLDERS
Stakeholders play most important role in the organization and they are directly interested in the
affairs carried out by business. Main parties which are associated with AB Inbev are customers,
suppliers, government, financial institution, employees etc. Considering need and requirement of each
and every party is must for business and it allows in gaining competitive advantage. As per view of
Abraham (2013) stakeholders supports business to survive in the competitive market and due to this
reason it is necessary for company to satisfy their need. Presence of effective strategies has allowed AB
Inbev to satisfy its key stakeholders and it is leading to development of company. Customers are
regarded as one of the main stakeholder of business where they expect beverages of high quality from
company at an affordable price (Abraham, 2013). Therefore, to satisfy their need company has
developed its brand portfolio and through this business is able to serve its customers in better manner.
Further, product range is modified timely and this is one of the main reasons behind success of
business in the market. In short it has provided long term benefits to the business and has acted as
development tool for the entire company.
Shareholders are another key stakeholder of AB Inbev as they invest funs in organization by
purchasing shares. Further, they expect some return from business and their needs are efficiently
satisfied by company as profit margin of company is high due to which it becomes possible to provide
them high return. According to Olson (2008) the most effective way to satisfy shareholders of business
is to deliver them high return as per their expectations. So, this has also enhanced performance of AB
Inbev and the merged business SAB Miller in the market. Apart from this, shareholders are interested
in obtaining financial information regarding the company and their need is satisfied by providing them
accurate and up to date information regarding the operations carried out (Olson, 2008). Suppliers of
company are also the most crucial stakeholder where they are indulged in the practices of supplying
different materials which are used in the production of beverages.
5

Further, company provides them payment for the material timely and through this their needs
are satisfied by AB Inbev. Organization considers their requirement very important and same is
satisfied with the help of large number of strategies. However Blokdijk (2015) argued that without
satisfying need of suppliers it is not at all possible for business to operate efficiently and in turn it acts
as hurdle while serving customers in the market. Government is next crucial stakeholder of the
business where different laws and regulations are developed which companies operating in the
beverage industry have to follow (Blokdijk, 2015). Therefore, management of AB Inbev ensures that
its practices comply with the guidelines introduced by government and this has positive impact on the
brand image of organization. As per view of Massingham (2004) every business operating in the
market has to ensure that its operations are in accordance with government guidelines and in case if
management is not able to comply with practices of regulatory authorities then it has adverse impact on
overall performance. Financial institutions are also one of the major stakeholders of business as AB
Inbev carries out all the operations on wider basis due to which financial requirement of the company
is high. Therefore, business has to obtain loan from different financial institutions. Apart from this they
are interested in knowing the liquidity position of the enterprise through which banks can know
repayment capacity of the company (Massingham, 2004). Therefore, AB Inbev satisfies their need in
efficient manner and appropriate information is delivered to banks for operating efficiently in the
market.
Therefore, in this way, these are some of the key stakeholders of AB Inbev and their needs are
satisfied by company by indulging into different practices which are crucial for business. In short, it
has enhanced overall performance of the business in the market and in turn long term survival in the
market has become easy. Apart from this, by satisfying the needs of different parties, company is able
to expand its operations in the different market and as positive impact on the brand image of business
which is one of the main motives of company behind operating in the market.
EXTERNAL ANALYSIS
In order to have effective identification of key trends that are associated with the environmental
aspects of Ab Inbev and its subsidiary firm Sab Miller, the business organization can focus on Pestle
analysis. It covers number of factors that can influence the work culture of the business firm (Ratna,
2011). Classification of factors can be as political, economical, social, technological, environmental
and legal.
6

Political: As per the structured study, it can be stated that the Ab Inbev and Sab Miller operates
its business in international market so it is essential for management to focus on political aspects of
different nations. If business organization is not considering political aspects in appropriate manner
then number of conflict situations can be occurred. Sab Miller management mainly focuses on Asian
countries such as China, India, Nepal, etc. In the support of this, political aspects of Asian nations are
stable and they are looking forward to activities that can attract more and more foreign companies to
operate business within nation (SChristensen, 2015). There are number of policies that need to be
followed by management of Ab Inbev while operating business in different nations. Taxation policies
are also beneficial for Ab Inbev and its subsidiary firm Sab Miller. Asian countries are making easy
policies for corporate world that provides better opportunities to the Ab Inbev. Currently, management
of Ab Inbev is more focused towards European nations to expand its business but with an assistance of
its newly take over firm Sab Miller the company can also search for new opportunities within Asian
nations (Huth, 2013). If political aspects get changed in any form then it will have direct impact on the
operational activities of beverage and brewing company.
Economical: It is also necessary for management of beverage and brewing company to focus
on economical aspects so that business can have impressive level of success. In this respect, the
7
Illustration 1: Pest analysis
(Source: How to make pest diagram, 2015)

management of Ab Inbev and Sab Miller needs to focus on economical aspects of international
beverage and brewing industry. Classification of key economical factors can be as exchange rates,
GDP, income level, etc. If global exchange rates are increasing then it is possible that they may face
economical conflict (Swanepoel, 2010). Moreover, the global economic recovery remains uneven
around consumer disposable income for beer due to continuing high unemployment, rising food prices
and increasing energy costs. For example, the company is looking for business expansion activities
within Asian nations. In this respect, the economical aspects of Nepal, India and China are more
dependent upon agricultural aspects so management needs to consider it as critical element. Ab Inbev
is a beverage and brewing company so the agricultural products are also key sources for the
organization (Freud, 2014). Economical elements within Asian nations are having dramatic progress
that also enhances the opportunities for organization. UK economic system and European economical
aspects are facing crises as compared to other nations which may influence business in negative
manner. Governments of different nations are more focusing on easy design of corporate policies such
as low interest of currency exchange. It allows provides better opportunities to the beverage and
brewing company at global marketplace.
Social: Social needs of different nations also need to be considered as critical aspect so that
business can have better opportunities in global market. If business organization is offering goods and
services without any consideration of social needs and elements then management can face critical
failure issues. It has been spotted that the taste and behaviour of customers is changing rapidly in the
global market so management of Ab Inbev must have focus on social needs identification activities. In
addition to this, it can be said that the increasing ratio of population is also enhancing the opportunities
for the company. For example, the beer consumption in Asian nations is also increasing due to high
acceptance of western culture (Levangie, 2011). It creates better opportunities for the Ab Inbev and Sab
Miller in the Asian market. On the other side, European nation’s citizens are already in favour of beer
consumption so beverage and brewing company is easy attaining better profit in this segment. In other
aspect, it can be stated that the social needs of customers can be differ according to their culture so
management must understand global culture for better opportunities in the market (Whitlock, 2008).
Technological: It has been spotted that the technology plays a key role in success of every
organization. In the support of this, it can be said that the number of technological changes has taken
placed within market. New bottling machines have introduced in the market that creates better
opportunities and cut down cost of operational activities. Management of Ab Inbev is constantly
focusing on technological updates according to needs of business (Porter, 2008). Number of changes
has taken into account in respect to Technology so that business can have impressive level of success.
Other than this, Sab Milleris is also a well known for use of the finest ingredients and best
8

technologies. Company is continuously focusing on improvement in beers and brewing methods
through assistance of technological tools (Delgado, 2009). Organization can also have easy
accessibility of technological equipments within Asian nations that boost its opportunities within Asian
market. Government of India and China is focusing on technological and infrastructure development
that creates better opportunities for beverage and brewing company (Porter, 2008).
Environmental: It is also essential for beverage and brewing company to have improved focus
on environmental aspects. Management must ensure that the business organization is not affecting any
kind of environmental aspect. The Beer consumption must not affect health conditions of people.
Packaging and bottling methods must have proper consideration of environmental standards so that
nature can be preserved from any harm (Whitlock, 2008). Plastic bottles must not be used to protect
environmental aspects.
Legal: There are number if legal aspects that need to be considered as critical aspect because
any kind of illegal activity may influence business in negative manner. Permission for beer production
and sale is essential for ethical work conditions. If business organization is operating business without
license and permission then organization may face critical issues that may lead business to failure
conditions.
INDUSTRY ANALYSIS
Threat of substitute: It is high because there are number of substitute products that attracts
customers and impacts the sales of beer. Developing nations are more focused towards wine and spirits
that may influence business of Ab Inbev and Sab Miller. It clearly indicates that the treat of substitute
products is high for the company (Levangie, 2011).
Threat of entry: It is low because it is a business that demands high investment and
government permissions. It is not easy for new organizations to enter in market because the
government charges number of taxes on production of beer which impacts their business in negative
manner. The increased level of awareness about alcohol use also influence the business of beverage
and brewing company. Less support of government in establishment of these products are creates
barriers for the new entry and boosts the opportunities for Sab Miller (Freud, 2014). Advertisement of
beer and alcohol products is banned in international market that also creates issues for the new
businesses. Gaining better brand image without marketing and advertising is one of key among
beverage and brewing industry.
Bargaining power of suppliers: It has been spotted that there are number of suppliers in the
market that provides high quality of resources at low price. It means the bargaining power of suppliers
is low in the industry (Swanepoel, 2010). If any supplier is not meeting the key needs of organization
9

then, management of beverage and brewing company can contact any other supplier for better
opportunities. Beer is made of fruit juice so fruit suppliers are key aspects for the industry.
Bargaining power of customers: It is high because there are number of competitors are
available in the market. In other aspect, it can be said that the company is facing high ratio of
competition in the market which also creates better opportunities for the customers (Huth, 2013). If Ab
Inbev will not provide products and services as per the social needs then, customers can buy products
and services of its competitors. It may influence the business of Sab Miller and Ab Inbev in negative
manner.
Rivalry: Company is facing high ratio of competition in the international market that impacts
business of Sab Miller and Ab Inbev in a diverse manner. The global pressure of different competitors
within the industry influences the cost and benefits of beverage and brewing company (SChristensen,
2015). It is necessary for management of Ab Inbev to focus on rivalry operational activities in order to
lead business to impressive level of success.
CONCLUSION
As per the above study, it can be concluded that the strategic analysis is significant for every
business organization because it provides information about various factors that can impact the
operational activities. In support of this, it can be said that the environmental analysis and industrial
analysis also facilitates management of Ab Inbev in effective designing of strategies. Company is
facing high ratio of competition in the international market that also influences business opportunities
in great context. Management of Ab Inbev and Sab Miller can focus on different strategies while
operating activities at different levels.
10

REFERENCES
Books and Journals
Abraham, S., 2013. Will business model innovation replace strategic analysis?. Strategy & Leadership.
41(2). pp.31 – 38.
Blokdijk, G., 2015. Stakeholder Analysis - Simple Steps to Win, Insights and Opportunities for Maxing
Out Success. Emereo Publishing.
Christensen, J., 2015. Digital Business: in The Digital Age. BoD–Books on Demand.
Delgado-Ballester, E., 2009. Product innovation in small manufacturers, market orientation and the
industry's five competitive forces. European Journal of Innovation Management. 12(4). pp.470-
491.
Freud, S., 2014. Five lectures on psycho-analysis. Read Books Ltd.
Friedman, L. A. and Miles, S., 2006. Stakeholders: Theory and Practice: Theory and Practice. OUP
Oxford.
Huth, M. N., 2013. Industry and Competitive Analysis of InBev.
Levangie, P. K., 2011. Joint structure and function: a comprehensive analysis. FA Davis.
Massingham, P., 2004. Linking business level strategy with activities and knowledge resources.
Journal of Knowledge Management. 8(6) .pp.50 – 62.
Megicks, P., 2007. Levels of strategy and performance in UK small retail businesses. Management
Decision. 45(3) .pp.484 – 502.
Olson, G., 2008. Creating an enterprise‐level “green” strategy. Journal of Business Strategy. 29(2).
pp.22 – 30.
Porter, M. E., 2008. Competitive strategy: Techniques for analyzing industries and competitors. Simon
and Schuster.
Ratna, R., 2011. Study of Consumer Perception about Business Strategy and Brand of Carlsberg.
International Journal of Management Prudence. 3(2). pp.50-60.
Swanepoel, E., 2010. An empirical analysis of a private company’s corporate social investment in
SMME development in South Africa. Southern African business review. 14(1). pp.20-30.
Whitlock, E.P., 2008. Targeted, updated systematic review for the US Preventive Services Task Force.
Annals of internal medicine. 149(9). pp.638-658.
Online
About us. 2016. [Online]. Accessed through: <http://www.ab-inbev.com/>. [Accessed on 11th March
2016].
Ahmed, G., 2014. Bowman’s strategy clock model and its eight competitive directions for edge.
[Online]. Accessed through: <http://www.studylecturenotes.com/management/bowmans-
11

strategy-clock-model-its-eight-competitive-directions-for-edge>. [Accessed on 6th April 2016].
How To Make A PEST Diagram In PowerPoint. 2015. [Online]. <Available Through: http://www.free-
power-point-templates.com/articles/how-to-make-a-pest-diagram-in-powerpoint/>. [Accessed
on 11th March 2016].
Levels of Strategy. 2015. [Online]. Accessed through: <http://www.marketing91.com/levels-of-
strategy>. [Accessed on 11th March 2016].
12

Page | 13