MGE Papers

  DeBeers is a member of a cartel and many other cartels have collapsed. Running a diamond business is not as easy as anyone thinks. De Beers enhances the partnership in worldwide by recruiting the skilled workforce. Inside the organization, it is responsible for creating passion and maintaining corporate rapport. It maintains policies like vision, worth and purpose and they are strategic. DeBeers – Relevant Facts De Beers is considered to be the world’s largest diamond mining and trading company in the world. At one time, it was said to be controlling more than 45% of the worldwide production and had been selling over 80% of all diamonds globally. It used monopolistic practices and by being a member of a cartel, it used massive size and control of the market to financially punish smaller miners and retailers who tried to break away from the De Beers cartel diamond “empire". Only DeBeers controlled most of the diamond cutting and polishing industry thus creating a mo...

PESTEL analysis Political aspect: In 1994 the DeBeers operation was prohibited in the United States territory because of antitrust legislation. These facts complicate the DeBeers operation and shake the whole company. Economic aspect: Although in 1990s DeBeers ruled the whole industry, after several events such as Soviet Union collapse and Alrosa’s appearing, DeBeers lost its control over the market. In addition, Canada’s appearing in the diamond market forced DeBeers to hold back a large portion of its diamonds from the market and purchase much of the excess supply from these producing countries often at inflated prices (McAdams, Reavis, 2008, p.7). Social aspect: In the mid-1990, Angola, Sierra Leone, Liberia and Democratic Republic Congo were outflanked by rebel forces opposed to the government. DeBeers sponsored this military conflict by “blood diamonds” purchasing. Technological aspect: The main threat is the synthetic diamonds grown is the lab-conditions. This tec...

DeBeers is the leader in selling diamonds. Natural diamonds are mined from countries like south Africa, Congo, Sierra Leone, Canada, Australia, India etc.   While we saw Kendall Lee wanted to propose his girlfriend with a diamond ring, he was not entirely convinced a natural diamond is the best choice. In 1990s a civil war broke out in western and central parts of Africa. The Rebel groups in Angola, Congo and sierra Leone were mining rough diamond and selling those directly to merchants or smuggling those to neighboring countries and mixing them up with legitimately mined rough diamonds. This way the rebel groups were funding the war against government. In 1990s global share of blood diamond was 15%, it fell to 1% by 2010 (Curley, n.d.). Lee was aware of blood diamond, and he was in dilemma whether he should buy diamond from DeBeers and help these exploitations. We are going to Perform a PESTEL analysis on DeBeers. While natural diamonds have its charm, the youngest diamond ...

Introduction: According to Hart, M. “De Beers and its sister corporation — Anglo American Corporation of South Africa, a gold-mining powerhouse — accounted for about half of South Africa’s economy, measured as a share of the Johannesburg Stock Exchange’s total listed capital. The Oppenheimers, who controlled De Beers and Anglo American, were the country’s richest family. South Africa’s banks and insurance companies, the backbone of its financial life, were enmeshed in the fortunes of the Oppenheimers’ gold-and-diamond empire. The diamond sector of the business, worth billions of dollars a year, maintained profitability by operating a cartel. It kept tight control of supply, which gave it mastery of the price. If the price showed signs of weakening, the cartel had only to cut back the flow of diamonds to the market for the price to recover. The power of the cartel lay in managing supply. Supply was its strength, but its weakness too” (2001) But we need to get a bit deeper to...

·        Select three key ideas or facts from the article which you believe are most important for a firm competing in a global market. Why are they the most important to the process? 1.      Mission and vision are really significant thing I am convinced that mission and vision are the strategic tools, not just formal phrases. According to Ketchen and Short, “vision is what the organization hopes to become in the future”; “mission is the reasons for an organization’s existence” (Ketchen, Short, 2012, p. 43). If an organization perceives such a meaningful thing as its future as a formality, what future will happen then? In my opinion, vision and mission must be stated even before an organization started its functioning, this process should be simultaneous with the business planning, because someone, who does not know where he or she goes and why, who does not have a plan, will reach nowhere. I can give you my personal example, I ...

The Significance of Vision and Mission Development for Enterprises in Slovak Republic  Vision and mission (Papulova, 2014) often forms an integral aspect of strategic management for many organizations in the world today. It is more like what drives the leaders of organizations to guide their followers to deliver on goals, tasks and optimal solutions. This is also used to communicate the present and future direction of the company as it pertains to all the stakeholders. Simply put, vision (Hofstrand, 2016) is like having a large picture of what you would like to envisage in an organization while mission is like a follow up statement on how the vision will be brought to life. Companies without a vision and mission statement tend to barely coexist with other competition and this is not desirable as the employees might hardly be motivated to perform beyond expectations in their duties. The article in this case study talks about how research was carried out in the Slovak Repub...

Benefits—Tangible and to the Culture of an organization that undertakes the adoption of policies designed to help employees with work-life balance?  What does an organization stand to gain if it can work through the growing pains of implementation?    Employers who choose to adopt some work-life policies may find that the candidate pool of applicants increases since employee are always interested in balancing their work and personal lives.  Clearly, a benefit is being able to attract the best possible candidates.  Absenteeism may decrease if employees are able to better structure their lives because of time, or a day, to be taken may not need to be taken if the employee is able to use a flexible schedule, (Kossek, 2009).  Additionally, those employees who wish to start a family may feel at ease knowing that as circumstances in their life changes, their employer has mechanisms for employee flexibility.  This means that there may be less absenteeism....