De beers case analysis and pest analysis
This is the reason the diamond industry has thrived over the past century, however this is one of the main aspects of the way we run business that is in violation of the U.
De beers case analysis and pest analysis
Political and Legal The role of government and international associations plays an important role in Diamond industry. I will concentrate on these stakeholders in the recommendations subdivision. Harvard Business School Publication: Synthetic diamonds are one of high threat in term of industrial consumption but do not really change the demand for gem-quality consumption. Sometimes strategies may fail for the new market but strategic capabilities progressed the market by developing product and services. It is also defined as the process of analysis, decisions and actions need to be taken by an organization in order to achieve strategic goals. Branding We need to go on our selling attempts aimed at branding our diamonds. Although requiring high capital for exploring, there is no guarantee the payback for time consuming and complexity process of exploring a diamond site. This provides a quick representation of the external pressures facing a business, and their possible constraints on a business. Stakeholders The primary stakeholders that will be affected by this impending move into the U. The global diamond industry illustrates that the major discovery about mining industry not has been developed which is resulting less production. It also helps an organization to detect and understand risks related with market growth or decline, positions, situations and directions. We will also pledge to the U. Social Issues and status New Entrants: 1. Unstable economic condition has influenced on the stability level of demand for diamonds in the market.
Control of output Customers: 1. Words:Paragraphs: 57, Pages: 10 Publication date: July 12, Sorry, but copying text is forbidden on this website! Figure 1: Distribution of major diamond mines all over the world Source: Linde et al.
De beers diamond dilemma case study analysis
De Beers employs approximately 20, people around the world? Exhibit 1 PEST Analysis Items of high importance are marked with an upward arrow for strong positive forces and a downward arrow for strong negative forces. This can be a positive force if De Beers can maintain market share in the U. In add-on to making more prestigiousness around our trade name of diamonds. World diamond council released an ISO which is standard of environmental certificate demonstrates to the mining sector of the diamond industry. Government and diamond associations are trying to strengthening and strictly governing the diamond mining process and practises through more rules and legislation enforcement. It can be said that gold is strong substitutes for diamonds in term of keeping it as treasury. De Beers is known for its association with international celebrities as brand ambassadors? Throughout the following memo I will identify the problems we at De Beers are currently facing. Diminish in costs can severely hurt De Beers as well as the whole diamond manufacturer. Those millions of consumers who have already invested in diamonds do not want to see the price of their investment decrease. The rough diamond production was estimated to million carats in whereas it was mil- lion carats in Therefore, the demand for diamond in China and India is predicted to be attractive enough for development of diamond industry in the future. The company used different methods to exercise this control over the market: First, it convinced independent producers to join its single channel monopoly, it overloaded the market with diamonds similar to those of producers who refused to join the cartel and last, it purchased and stockpiled diamonds produced by other manufacturers in order to control prices through supply. By go oning our branding attempt.
According to this in country beneficiation, Botswana government allows De beers to move their global sightholder sales to Gaborone, Botswana in Due to war in western Africa. PEST analysis is used to evaluate the political, economic, social and technological influences that organizations might face when they are about to start a project.
Therefore, by helping to stabilize the supply and price of diamonds, we are not hindering the success of people or businesses within the U.
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