Benguet Corporation
1. Statement of the problem
The Benguet Corporation refused to submit concentrate samples to the Philippine Associated Smelters and Refining Corporation (PASAR).
The Benguet Corporation faces shortage in producing their products and complying its contract to Mitsubishi Metal Corporation and complying the LOI.
2. Analysis of the case
Strengths
The Benguet Corporation is the major producer of copper concentrates.
It was the oldest mining company, the largest gold and chromite producer and one of the largest copper producers in the Philippines.
Smelted
Weaknesses
Benguet Corporation production was expected to decline steadily which results a negative impact to Mitsubishi Metal Corporation.
The Letter of Instruction (LOI) ensures the Philippine Associated Smelting and Refining Corporation (PASAR) an adequate supply of copper concentrates from all local companies which results/causes pressure to Benguet Corporation in submitting its samples to PASAR.
Opportunities-chance,break
It is the biggest and oldest mining corporation started since 1903 and produces largest gold, chromite and copper in the Philippines. It is active in exploration for gold, copper, chromite and coal.
Its expertise is about exploration, mining, beneficiation and marketing of minerals.
Threats
Benguet Corp. faces complaint from own shareholders. It also fears from selling their concentrates to foreign smelting and refining plants because of the mercury content which results Benguet enter into a 12year contract to Mitsubishi Metal Corporation.
3. Alternative Solutions to the problem
The Benguet Corporation provides 5-year summary of financial performance, including the individual subsidiaries’ contributions and the resulting effects which results of return of the company stakeholders.
The Benguet Corporation tried to have a partnership to different small mining corporations which results higher