Answer letter b

a$.$ Highlight a situation illustrating the strategic problem$/$issues confronting management.

San Miguel Corporation, a diversified conglomerate operating in various sectors such as

food and beverage, fuel and energy, packaging, cement, and properties, faces numerous

strategic challenges across its businesses due to external factors and changing market

dynamics.

One overarching issue is the competitive landscape across multiple industries. San Miguel

contends with fierce competition from both local and international players, impacting market

share and profitability in sectors like food and beverage, fuel and energy, and packaging.

Another significant challenge is the volatility and uncertainty in demand, driven by economic

conditions, government policies, and global events such as wars and pandemics. This

fluctuation in demand affects revenue streams and requires agile strategies to adapt to

changing market conditions. Operational efficiency and cost management are also critical

concerns. Rising energy costs, raw materials, and regulatory compliance requirements add

pressure to control production expenses and maintain profitability across all business segments.

They also face industry$-$specific challenges. In the cement sector, for instance, they face

demand fluctuations and the need to enhance operational efficiency to remain competitive and

profitable.

In summary, San Miguel Corporation grapples with competitive pressures, demand volatility,

cost management, and industry$-$specific challenges across its diversified portfolio. These issues

require strategic foresight, agility, and proactive measures from management to navigate

successfully in dynamic and challenging business environments.

b$.$ Draw out suggestions$/$hints