Ivey Publishing
San Miguel: Succession in the Philippines' Largest Corporation
Product Number:
9B17C036
Publication Date:
09/29/2017
Revised Date:
09/29/2017
Length:
13 pages (6 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey/NUS
In September 2011, San Miguel Corporation (SMC) celebrated its 122nd anniversary. Its chairman had just turned 76. Two years earlier, he had travelled to the United States to receive a cardiac ablation to correct an irregular heart rhythm. Succession-related questions were on his mind. SMC needed a clear plan for the leadership transition. The charismatic chairman spent his life successfully exploiting business opportunities, growing SMC from a small brewery company into a giant business group. By 2011, SMC was the largest corporation in the Philippines in terms of revenue—accounting for about 6 per cent of the country’s gross domestic product and employing about 17,000 people. The group engaged in a wide range of businesses including mining, oil refining and distribution, power, telecommunications, airlines, airports, and infrastructure. How could the company continue to thrive without its remarkable leader? Finding a path towards a smooth leadership succession would be a difficult task.
Learning Objective:
This case is suitable for advanced undergraduate or MBA courses covering the topics of family business issues, family governance, or financial management by a family business. Through this case, students will be able to
  • explore the role of business groups in emerging economies;
  • examine the role of big business and controlling shareholders in a corporation and in the economy;
  • discuss corporate governance of business groups; and
  • explore the role of political influence in the businesses of emerging economies.
    Issues:
    Disciplines:
    Organizational Behaviour/Leadership,  Entrepreneurship,  International
    Industries:
    Manufacturing
    Setting:
    Philippines, Large, 2011
    Intended Audience:
    Undergraduate/MBA
    Price:
    $4.25 CAD / $4.25 USD Printed Copy
    $3.75 CAD / $3.75 USD Permissions
    $3.75 CAD / $3.75 USD Digital Download
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