De Beers Case Study
Business 478
Section D 100
STRATEGIC ANALYSIS FOR:
De BEERS
Student Name: Qiang Xu
Student ID Number: 301184581
Date: Mar. 6, 2015
INTRODUCTION
Background in Brief
The De Beers Group of Companies (DeBeers) was founded in 1888 by Cecil Rhides. De Beers consolidated Mines was formed in 1888 by the merger of the companies of BarneyBarnato and Cecil Rhodes, by which time the company was the sole owner of all diamond mining operations in the country.De Beers doing diamond exploration, diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing. The company operates in 28 countries and mining take place in Botswana, Namibia, South Africa, and Canada ((Wekipedia). In the early 1990s, De Beers dominated diamond industry. De Beers produce 45% of world diamond, but sold 80% of world supply (Reavis, 2008).
The Organization Today
By limited supply, De beers successfully control diamond price and be the monopoly through out 20 century.De Beers products are currently available in more than 1530 authorized retail store in 29 contries.
Now De Beers is no longer monoploly as before, now it supply 35%of world comsuption by volume (Betting on De Beers, 2011). In 2012, De Beers rough diamond sals fell 15% to $5.5 billion. Sales through auctions declined 12% to $356 million. De Beers ended the year with free cash follow of $ 697 million, down 15% from year earlier (Krawitz, 2013).
Mission
The company’s stated mission is:
We are driven to turn “ diamond dreams” into lasting realities.
De Beers have two main objectives to achieve: to unlock full economic value to its leadership position across diamond pipeline and to make diamond reality to everyone by increasing partnership, by employee skilled and committed people and by relying on emotional value of their diamond products (Hannah Lee).
Goals and Objectives
Pull together
Being united with principle and action, turning diversity of people, skill, and experience (Fowler).
Shape the future
Section D 100
STRATEGIC ANALYSIS FOR:
De BEERS
Student Name: Qiang Xu
Student ID Number: 301184581
Date: Mar. 6, 2015
INTRODUCTION
Background in Brief
The De Beers Group of Companies (DeBeers) was founded in 1888 by Cecil Rhides. De Beers consolidated Mines was formed in 1888 by the merger of the companies of BarneyBarnato and Cecil Rhodes, by which time the company was the sole owner of all diamond mining operations in the country.De Beers doing diamond exploration, diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing. The company operates in 28 countries and mining take place in Botswana, Namibia, South Africa, and Canada ((Wekipedia). In the early 1990s, De Beers dominated diamond industry. De Beers produce 45% of world diamond, but sold 80% of world supply (Reavis, 2008).
The Organization Today
By limited supply, De beers successfully control diamond price and be the monopoly through out 20 century.De Beers products are currently available in more than 1530 authorized retail store in 29 contries.
Now De Beers is no longer monoploly as before, now it supply 35%of world comsuption by volume (Betting on De Beers, 2011). In 2012, De Beers rough diamond sals fell 15% to $5.5 billion. Sales through auctions declined 12% to $356 million. De Beers ended the year with free cash follow of $ 697 million, down 15% from year earlier (Krawitz, 2013).
Mission
The company’s stated mission is:
We are driven to turn “ diamond dreams” into lasting realities.
De Beers have two main objectives to achieve: to unlock full economic value to its leadership position across diamond pipeline and to make diamond reality to everyone by increasing partnership, by employee skilled and committed people and by relying on emotional value of their diamond products (Hannah Lee).
Goals and Objectives
Pull together
Being united with principle and action, turning diversity of people, skill, and experience (Fowler).
Shape the future
References: AWDC. (2013). THE GLOBAL DIAMOND REPORT 2013 Journey through the Value Chain. Bain&Company. Betting on De Beers. (2011, Nov 12). Retrieved Mar 4, 2015, from The Economist: http://www.economist.com/node/21538145 Cadieux, D De Beers Group . (2013). Operating and Financial Review 2012 . Fowler, J Goldman, P. B. (2003, Sep 15). Cracked De Beers Lev Leviev is taking on the most successful cartel in the world. Retrieved Mar 5, 2015, from Forbes: http://www.forbes.com/global/2003/0915/046.html Hannah Lee, H Krawitz, A. (2013, Feb 15). De Beers Group Sales -16%, Earnings -49% in 2012. Retrieved Mar 5, 2015, from Rapaport: http://www.diamonds.net/News/NewsItem.aspx?ArticleID=42350&ArticleTitle=De+Beers+Group+Sales+-16%25%2C+Earnings+-49%25+in+2012 Maduekwe, N Reavis, D. M. (2008, Jan 07). DeBeers’s Diamond Dilemma . MIT Sloan Management. Tiffany&Co. (n.d.). Tiffany&Co. Retrieved Mar 4, 2015, from Global Strategy: https://brandtiffanyandco.wordpress.com/business-strategy/ Wekipedia