group 7 san miguel corporation (case study)

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  • 1. Page |1De La Salle College of St. Benilde 2544 Taft Ave., Manila Philippines A Case Study on the OrganizationalCulture ofSAN MIGUEL CORPORATIONGrade: 27+3(early submission) = 30/30 Congratulations Well Done! Section: TAOA1 Group Number 7 Members:Bagual, John Rey E. Cabugao, Frances Jarmine C.Surigao, Anale Vega, Charmine Hazel E.I. Mission and Vision

2. Page |2A. Mission San Miguel Foundation, Inc. is committed to the empowerment of San Miguelhost communities and various stakeholders by harnessing corporate social responsibilityamong the various San Miguel businesses in pursuing mutually beneficial programs thatlead to self-reliance and sustainability.B. VisionSMCs fundamental and historical philosophy Profit with Honor The following are SMCs objectives: To be constantly aware of the aspirations of the people and of the nation, and to ensure that San Miguel continues to make a major contribution towards the achievement of these aspirations. To manufacture, distribute and sell throughout the Philippines food products, beverages, packaging products and animal feeds, being ready at all times to add, modify or discontinue products in accordance with changes in the market. To diversify into fields which will ensure optimum utilization of management resources and a substantial contribution to corporate profits? To seek and develop export markets for new products as well as for those already being produced by the Corporation. To generate a return on funds employed sufficient to ensure an adequate rate of growth for the Corporation, and to provide satisfactory returns to stockholders. To provide an environment which is conducive to the development of the individual and which encourages employees to realize their full capabilities. 3. Page |3 To adopt a flexible and objective attitude towards change and to pursue an activepolicy of innovation.II. Brief HistoryA. Establishment and Nature of the CompanyEstablished in 1890, La Fabrica de Cerveza de San Miguel, Southeast Asias firstbrewery produced and bottled that would eventually become one of the bestselling beersin the region. Within the span of a generation, San Miguel Beer would become an iconamong beer drinkers.By 1914, San Miguel Beer was being exported from its headquarters in Manila toShanghai, Hong Kong and Guam. A pioneer in Asia, San Miguel established a brewery inHong Kong in 1948, the first local brewer in the crown colony.Today, San Miguel Beerthe Companys flagship productis one of the largestselling beers and among the top 10 beer brands in the world. While brewing beer is thecompanys heritage, San Miguel subsequently branched out into the food and packagingbusinesses.From the original cerveza that first rolled off the bottling line, San MiguelCorporation has since diversified to produce a wide range of popular beverage, food andpackaging products which havefor over a centurycatered to generations of consumersever changing tastes.The Companys manufacturing operations extend beyond the Philippines to HongKong, China, Indonesia, Vietnam, Thailand and Malaysia. Its products are exported tomajor markets around the world. Continuing a tradition of product quality, San Miguel iscapitalizing on its unique strengths in brands and distribution to weave its products moredeeply into the fabric of everyday life. Not just in the Philippines but in the Asia-Pacificregion. 4. Page |4B. Board of DirectorsEduardo M. Cojuangco, Jr. Ramon S. Ang-Chairman and CEO -President and COO-Chairman -Member -Executive Committee -Executive Committee-Nomination & HearingCommitteeEstelito P. MendozaIigo Zobel-Chairman-Nomination & Hearing Committee-Member-Executive Committee-Audit Committee 5. Page |5C. Nature of the company 6. Page |6 D. Heroes According to Mr. Brizuela, their heroes are those men on the top management because they were the ones who serve as leaders of the company. Without them, the company will not operate well. Those men on the top management are said to be the brainiacs because oftheir exceptional abilities and skills on handling the company. Those men who wereconsidered as heroes of the company are: Mr. Eduardo M. Cojuangco, chairman, Mr.Ramon S. Ang, president and Mr. Mendoza. These men exemplify because of theirdedication to work. Employees admire and respect them so much. Also, whatever SanMiguel is now is all because of them. They were able to reach the success of the companyand now, it is one of the largest companies in Asia.C. Rites and Rituals: San Miguel Corporation has rites and rituals conducted then and now. In everycompany, it is very important to have these because it helps maintain the practices thatthe company had. San Miguel wants its employees to be felt belong in it. The company isvery generous to its employees. Some of the rites and rituals they practiced are:Christmas parties, summer outings choral contest, dance contest and other activitiesrelated to their company. It also gives seminars, trainings, orientations, and team buildingto improve their skills and widen the knowledge of the employees.E. Logo/Symbol of the CompanyThe escudo is the corporate logo of San MiguelCorporation and this escudo graced the documentconferring on the original San Miguel Brewery theSpanish Royal Grant of Authority to brew beer. 7. Page |7Don Enrique Ma. Barreto is the San Miguels founder was seen the historic significance of theseal and they decided to use this trademark for San Miguel beer.The escudo was adopted as the new companys symbol and the trademark of the Philippines firstbeer thus became the symbol of the corporation itself. After being used exclusively as the logo ofSan Miguels flagship product and beer business for 24 years, the escudo was adapted anew asthe corporate logo.The escudo and the accompanying modern typeface that comprise the new corporate identity callto mind the Companys traditional strength of quality and reliability as well as the dynamism andresults-oriented strategy of San Miguels current leadership. The escudos application on all SMCproducts, stationery, identification cards and other paraphernalia will be implemented in phases inthe following months.2012JuneSan Miguel targets new investments, P1 trillion revenue in near-termMaySMC Q1 income up 19% to P8.5 billionAprilSan Miguel, Lucio Tan Group sign investment agreementsMarchSMPFC revenues hit all-time high in 2011JanuarySMC to donate P500M to build homes, provide livelihood for Sendong victimsThis logo became popular not only here in the country but also to the other countrybecause it is one of the successful companies in the Philippines and it is symbolizing thestrong relationship between Boss and Employees. All people know this logo and who thecompany owner is this and even if the children know it. 8. Page |8F. Analysis Chosen Department: Media Affairs Group Corporate Affairs Office Department Manager: Mr. Jayson B. Brizuela Photo Caption: The two pictures above show Mr. Brizuela with the 4 members of the group. A typical working day at the office starts at 7 oclock in the morning. Employeesare divided into different teams. As the Media Affairs Group, there is a team thatmonitors all publications like articles on newspapers about San Miguel Corporationitself. They monitor and compile articles in order to know some feedbacks from thepeople outside the corporation such as reactions of different business, journalists andeven customers. It is also a way to reach peoples concerns and act upon it. The groupalso provides Consultancy Services to businesses that are in needs. The group conductsdifferent projects outside the office like seminars for those who aim to be futurebusiness owners or managers and many other types that would also help people,especially students, to widen their knowledge when in comes to communication andimage building. Aside from this group, there is also another one, which is responsible forwriting and editing articles about the corporation. 9. Page |9 When it comes to rewarding their employees, Mr. Brizuela said that they havedifferent kinds of rewards that are being offered. Some are material rewards like bonusesand gifts. According to him Every year depending on your (employees)performance, theres a financial reward. There are also non-material rewards likeshowing appreciation of the employees works by giving compliments, but one of themost important non-material rewards is the knowledge in the field. When I came toSan Miguel, I was just.. what did I know? I was a writer. I couldnt even say a verygood writer. You know? I know how to write. I know a little bit of online media.NOW, I can say I learned a lot. I dont know everything about it, but I know a lot.- said Mr. Brizuela. For him, experiences on working with many different people andmany experts are great factors of someones improvement and maturity. To encourage productivity, benefits serve as great factors that motivate employeesto do their best in whatever task they are assigned to do. According to him (Mr.Brizuela), As a boss, you have to know how to motivate your employees properly. Iwouldnt say theres a formula, but I could say its case-to-case basis of managementstyle. I personally let my employees or let my staffs learn for themselves and decidefrom themselves what is best. Asking opinions helps in empowering employees tothink and decide for themselves and defend whatever t is that they propose. It makes theemployees realize that how valuable they are by allowing them to have a say of whatsgoing on in their department. It is giving the employees the chance to learn and discovertheir abilities. For him it is a better way of managing than giving them a set of what-to-dotask to be done mechanically one-by-one; although, in some areas, it is also effective. Diversity is also given importance. Whether youre a foreign employee or not,and whether youre a female or male. According again to the departments manager,Anywhere in the company, its really your expertise that we look at, not yourgender or preferences or nationality. Your skill is the big priority. When you saySan Miguel, parang its a macho company, diba? San Miguel Beer, Ginebra SanMiguel.. napaka macho ng tingin, but when you actually consider looking at the 10. P a g e | 10people in San Miguel, a lot of them are women.. He even said that Marami ngangjoke dito. Ang powerful daw dito mga babae. These things promote good relationship between employees. According to Mr.Brizuela, Its how managers and employees align. He said that management stylesdiffer within different department, which makes each department have its own culture.He also said that, I wouldnt say theres a specific way. Its just you know, maybe,its how we are as people. So f the boss is very outgoing, very friendly person, veryopen and knows how to listen well, then all the people down the line will tend toadapt the style.. In their department, they seem to be very close with each other. Theytreat each other as friends. Sometimes, when someones celebrating his or her birthday,they would decorate their cubicle as a surprise in order to let each other feel theirimportance. Sometimes, they would also gather in a certain time to give a gift or cake tothe celebrant and celebrate together. He said that it is already part of their departmentsculture. And when theres extra time, they would eat together like a big family. Formal relationships with other employees, even those who belong in otherdepartments is still important, but for the manager of this department, informalrelationship is more important at times so that when time comes that youll be needingtheir help, it would be easier for you to communicate with them and ask help in order toaccomplishyour task. Interpersonalrelationships are important in bigorganizations. For him its so hard if you dont know anybody. Interpersonalrelationships should be developed in order to accomplish your job easier and faster,which would be benefited by the whole corporation itself. Whenever there is a problem The first thing to do, of course, is to geteverybody inside one room and you talk about the problem; and you talk about howeach department, how each group can help in the agenda. and For thiscommunication office, COMMUNICATION is still the bottom line for everything.said Mr. Brizuela. And in order to create a great network of communication, effectivechannels should be used. There are many channels that are being used by the company, 11. P a g e | 11but the primary one is the Company Publication, which is such of a magazine. However,there is also some other channels like corporate internet and smart phones. The corporate internet is like a social media network wherein the employees maypost and/or pictures and information related to company issues within the visibility ofother employees. They may also like or share stuffs in the corporate internet. It alsohas its business side, wherein different forms like Request Products Forms, LoanForms, copes of HR functions, etc. can be located. It has a good balance of its usabilityand functionality. Electronic mail is also used by the employees. One of the purposes of having theirsmart phones is to be easily reached by other employees and vice versa. Their smartphones are integrated with e-mail system. Aside from the said channels, they are also using what the call San MiguelDigital Signage. These are somewhat like television screens that can be seen along thehallways and elevators in their building. These televisions flashes different news aboutthe company itself like recent and/or upcoming projects in order let employees toknow and to be updated on what is going on within the company. Products are also beingflashed, especially those that are recently added in the corporations offered products. As years pass, the San Miguel grows bigger and bigger. They are now out of theircomfort zone. Today, they are not just offering food and beverage products, but they alsostarted investing in infrastructures like Philippine Airlines. Thats why Mr. Brizuelaeven said that, It is a great time to be in San Miguel.F. Additional Pictures The following pictures show the members of the group while conducting theinterview with Mr. Brizuela. 12. P a g e | 12Photo Caption: These two photos showJohn Rey Bagual while recoding the video of theinterview. Photo Caption: The two pictures below show Frances Jarmine Cabugao while taking down notes and pictures during the interview. 13. P a g e | 13 Photo Caption: The following pictures show Anale Surigao and Hazel Charmine Vegawhile interviewing Mr. Brizuela.G. ReferencesSan Miguel Corporation (2011). The San Miguel Escudo. Retrieved on August 3, 14. P a g e | 14 2012 from http://www.sanmiguel.com.ph/corporate/escudo/San Miguel Corporation (2011). The San Miguel Escudo. Retrieved on August 3, 2012 from http://www.sanmiguel.com.ph/1999/06/escudo-now-smc-corporate- logo/San Miguel Corporation (2011). The San Miguel Escudo. Retrieved on August 3, 2012 from http://www.sanmiguel.com.ph/corporate/structure/San Miguel Corporation (2011). The San Miguel Escudo. Retrieved on August 3, 2012 from http://www.fundinguniverse.com/company-histories/san-miguel- corporation-history/H. Personal InterviewInterview with Mr. Jayson B. Brizuela Manager Media Relations Media Affairs Group Corporate Affairs OfficeHazel: Sir, what is the mission-vision of the company?Mr. Brizuela: Our mission-vision is that San Miguel always highlight the core values tomake everyday life a celebration. Why is that? Because, 3 years ago, San Miguel was alargely aaa... consumer product of the company such as food and beverages. So at thattime, we thought that .. ahhmm .. well , our products are such a part of everydaylife.Apparently, in the morning, tha hotdogs that you eat, the milk that you drink. Even theMagnolia ice cream, beer , everything. Its a part of the Filipino culture. Thats why wehave corporate culture as part of everyday life. Right now , ahhhmm.. San Miguel is inthe midst of a diversification. When you say diversification, means that aaahhh .. tomake it more simple .. we are going out with our comfort zone which is food beverageand packaging. And going into new businesses, that are not traditionally identified by 15. P a g e | 15the San Miguel including power generation, infrastructure such as airports, toll gates,highways, and aaaa .. transport system like trains. So we are also , aahhhmm .. werenow into Philippine Airlines.Ana: When did you started putting up the business with the Philippine Airlines?Mr. Brizuela: Ah well, all these things happened in the past 2 or 3 years. PhilippineAirlines was the latest field.Ana: When was your company established?Mr. Brizuela: I think its in 1890. Well , somebody, somebody .. Aaahhhmmm ... Mayanecdote kasi ang San Miguel. So why is it called San Miguel Brewery? This is reallyestablished along San Miguel St. in Manila near Malacaang.Hazel: Eh panu naman po nalipat dito sa Mandaluyong?Mr. Brizuela: Ah well , of course, well hindi na natin inabutan lahat yan. I think nungnasa Spanish times nga noon, nagkaroon ng wars kaya nalipat ang San Miguel Breweryin different places. So, I think this building, ahhmm.. San Miguel Corporation moved inearly 1980s.Ana: Who is the founder of the company?Mr. Brizuela: Aaammm .. Di ko memorize yung name niya eh . Well as I wasmentioning, you can find some information in our website.Hazel: Okay sir, what is the company all about ? Is it product or service in nature ?Mr. Brizuela: Oh yeah. It is definitely product in nature, but as of now it is also servicein nature. 16. P a g e | 16Ana: What other products are you manufacturing aside from San Miguel beer?Mr. Brizuela: Naku marami yan. Do you know Magnolia Ice Cream?Frances: Yes of course.Mr. Brizuela: Aaahhmm .. Magnolia milk Monterey meat, Purefoods product,Agricultural goods such as Animal feeds; BMEG, ahhmm madami yan sobra eh. Hahah.Star Margarine, Jelly Ace.Hazel: Sir, who are your heroes in the company?Mr. Brizuela: Well, okay. Siguro I would actually to ano ahhhmm. Okay let it say heroesbut really when you look at it especially to our leaders. Of course when look up to ourtop management.. Ahhhmm .. Our president, Mr. Ramon. Hes ahhh .. engineer. Hedirect us to the right directions and managed San Miguel very well. W look up to him asa leader. And of course we look up to all the members of the management team and ahhh.. members of the board. Mr. Cojuangco, Im sure youre familiar with him. Mr.Cojuangco is our chairman. Ahhhh.. although he is ahhh.. really ahh .. hes not as apeople president today. Also, we look up with Mr. Ang.. Ahhh .. He is also a leader ofthis company that people really admire.Ana: What do they mainly contribute to the company?Mr. Brizuela: Well, they , I would say that whatever San Miguel is now is because ofthem. Because, you know they were able to reach ahhhmm.. as being one of the largestcompany here in the Philippines.Hazel: Do you have rites and rituals? 17. P a g e | 17Mr. Brizuela: Of course! In any company, you know ahhh .. San Miguel makes it a pointto make sure that the employees ahhh .. feel they belong, they are engaged. These are thestandard credibilities, ahhh .. you know San Miguel has been very ahhh .. generousabout such as: Christmas party, summer outings, ahhh .. so we have seminars to improveour skills, or ahhh widen our knowledge. These are all things that the San Miguel gave tothe employees. We even have, ahhh ano lang fun activities, choral contest, dance etc.John: What is the logo of the company and what does it symbolizes?Mr. Brizuela: The logo San Miguel ahhh .. ayan (points the picture at the wall). Ahhh ,we call that San Miguel Escudo. That is the seal of the City of Manila, and simply wereput up in the City of Manila, we adapted the logo. You know as affinity of the City ofManila.Hazel: What those colors signify?Mr. Brizuela: I dont think theres a rationalization for the colors.Ana: Could you describe a typical working day in your department/meeting?Mr. Brizuela: Okay I.. ahh .. I am the manager for the media affairs. When you saymedia affairs, basically interact and communicate with ahhh to the press whether it islocal or international. A typical day would be aahhh .. would start around, for the rule, itstarts early at 7 oclock in the morning because theres a team that monitors theattendance. Usually, in the morning I chat with them on whats happening such as , whatare the new product coming out, when we campaign, and as a job of the day, we areediting articles and companys paper..Hazel: How does the company reward the employees?Mr. Brizuela: Ah of course sumusuweldo sila di ba ? Well you know when youreworking with a big company, theres lot of ways on rewarding the employees such asmaterial and non-material ways. Materials such as bonuses, gift certificates, certicates 18. P a g e | 18etc. As of non-material, we gave promotions to those employees who deserve to bepromoted.Ana: How do you encourage productivity in the workplace?Mr. Brizuela: Ahhh , well kasama na rin diyan yung mga benefits na sinabi ko kanina.That serves a motivation. You know , ahhh you have a good job, you have a lot of areaswhere you can go so that motivation will be more emphasized. And then of course, as aboss, you have to know how to motivate your employees in the company. I wouldnt takeit as a formula but it should be depended on the management style. I personally let mystaff learn for themselves and decide for themselves what is good.Hazel: How do you handle problems within your department?Mr. Brizuela: Well, we are communication office so, really everything is under that. Iftheres a problem whether it is within the team or problem outside the company that wehave to deal with , aahhh .. so the first thing we do is of course we gather the team andtalk about the problem and find a solution on it.Ana: What channel of communication you mostly used?Mr. Brizuela: ahh .. We mostly used the telephone communication because it is veryconvenient for us to communicate with the person in different offices. We also used e-mails to send immediately business letters and we have publications to serve as basis ofwhats happening about the company. But of course, we still use the face-to-faceconversation if the situation is really urgent.Hazel: Does your company encourage diversity?Mr. Brizuela: Of course! We really encourage diversity. Pero dito naman sa companynaming wala masyadong foreigners because we are almost Filipinos working here.Siguro, ang foreigners lang is yung mga stockholders ng company. 19. P a g e | 19Ana: How do you maintain good relations inside/outside of your department?Mr. Brizuela: It really depends on each other. My team maintains good relations byknowing each others concern and problems. We all respect each others abilities andskills. As for the relations outside the company, we still do the same. Though we havedifferent offices, we still manage to know and care for each other.Hazel: Thank you so much sir for your time. More power to your company.Mr. Brizuela: Youre all welcome and I hope we will see each other soon.