anglo american; de beers - business policies

8/3/2019 Anglo American; De Beers - Business Policies

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AACBusiness Policy Review

Ajinkya Naik [124]

Akankssha Gupta[36]

Aniket Sengar [47]

Harish Edara [20]


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Profile


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Business Units


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Timeline


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Major Players


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Market Share

De Beers

Alrosa

Rio Tinto


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Five Forces Analysis

High Capital Costs

Economies ofScale

Protected Cartel

Political Instability

Vertical

Integration

Entry Barriers:High


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Supplier Monopoly

No threat of Forward/Backward

Integration

Low Supplier Concentration

High Replacement Costs

Supplier Bargaining Power:Moderat

e

Five Forces Analysis


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High Price Sensitivity

High Demand

Strong Brand Identity

Five Forces AnalysisBuyer Bargaining Power:

Moderat

e


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Steady Growth

Low Concentration ofplayers

CartelHigh Exit Barriers

Low Product

Differentiation

Five Forces AnalysisDegree of Rivalry:Low


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High Perceived Value

Substantial threat ofSubstitutes

Low Switching Costs

Low Propensity to Substitute

Better Investment Avenues

Five Forces AnalysisThreat of Substitutes:High


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The Value Chain


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Value Added at each stage


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Resource Based ViewValuable Rare Inimitable

Non-Substitutable

Own 65% ofSouth Africas

mines

High entrybarriers, Low

number ofplayers

Path

dependence,high degree of

verticalintegration

BloodDiamonds


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Core CompetenciesOrganizing

Effectively andEfficiently

Operational

excellenceCost reduction

Value DrivenLeadership

Investing

In World classassets and

commodities

Own, operate

and growmining assets

Choose assetswith expansion

potential

Operating

Safely,sustainably

andresponsibly

Strive to

achieve zeroharm

Emphasizeintegrity

Employing

The Bestpeople

Consider

people asprime assets

Believe inpercolation of

vision


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Corporate Strategy


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Restructuring


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Tangible impediments to

Imitation


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Intangible impediments to

ImitationHistorical

CircumstancesSocial

Complexity

PathDependencehas caused

high amount of

dependencybetween thecompany and

the state

DealerrelationsFamily

ManagedSBUs


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First Mover Advantages


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Tetra FrameworkImitation

Hold UpSlack

Substitution

Added Value

AppropriatedValue


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Challenges

Spread of HIV/AIDSSupply ChainInefficiencies

Sustainability of resources

South Africa - Country Policies

SocialResponsibility


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Blood

DiamondsBlood Diamonds arediamonds mined underfactions opposed to

Internationally recognizedGovernments (in inhumanworking conditions, childlabor et cetera), and usedto fuel military action

against such governments


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CommitmentsIn 2009, Xstrata approached AAC for a merger

Currently, $70 Billion worth of projects are in thepipeline (4 major growth projects)

the Los Bronces copper expansion project in Chile

the Barro Alto nickel project in Brazil

and Kolomela iron ore project in South Africa


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Recommendations


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Dhanyavaad

anglo american; de beers - business policies

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