Importance of Key Success Factors in businesses and organisations of Essay

Importance of Key Success Factors in businesses and organisations of SAB - Essay Example This report studies critical success factors by studying the case study of the South African Brewery (SAB). Since its inception the management of the company had a vision of future expansion and utilization of the most efficient mechanisms in order to obtain access to the capital and money markets and provide liquidity to the equity and commercial of the company was an early success factor for SAB. In 1892 the company converted into the public company South African United Breweries openly traded in the London Stock Exchange was the event that allowed the company to finance its operation and acquire capital whenever needed take advantage of market opportunities. The company immediately work to work and the creation of the public came simultaneously with the acquisition of a brewery. The smart strategies continued with this company and the exposure gained as an LSE player attracted a key investor which led to the formation of SAB in 1895. Another key historical event in SAB which was a major success factor was the latter acquisition of two other companies in South African beer business whic h enabled the company to control 90% of the alcoholic beverage market share in 1960. A company that controls 90% of a market basically is a company operating in a de-facto monopoly. In reality the company operates in oligopoly. An oligopoly is an industry with very few competitors participating in the marketplace. Since SAB control 90% there are powerful that the power they have over strategic decisions and entire industry provide the company the ability decision such as controlling the pricing, supply and demand of the supply chain in South Africa. That type of power enabled the company to become the player in this industry that serves the need of the customers and creates the trends in product offering that the minority players in the industry follow. A de-facto monopoly allows a company such as SAB to set a price for its product without worrying about the