DE Beers Diamond Dilemma - Case Study Example

Comments (0) Cite this document
Some of the factors in the macro-environment that affects the various decisions within an organization are political, economic, social, technological and environmental factors. All these factors are can be analyzed using Pestle framework (Gillespie, 2009)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
DE Beers Diamond Dilemma
Read TextPreview

Extract of sample
"DE Beers Diamond Dilemma"

Download file to see previous pages Political factors These factors emerge from the various policies, which are imposed by the government. De Beers as an incorporation had to deal with different political upheaval since it operated in different countries and had to sell its products to different countries as well (Gillespie, 2009). The political upheaval in Soviet Union in the year 1991 causes a lot of profit loss to De Beers Incorporation (Danielle, 2005). Before this upheaval, the Soviet Union and De Beer Incorporation had trading agreements and that dates back to the year 1950s. In this same year, deposits of Diamond were found in Siberia and from the trading agreement; Soviet Union had agreed to sell all their diamonds to this Incorporation. The integration of the Soviet system resulted into the collapse of the trading agreements that De Beer had with them and therefore, the enforcement of the various contracts were not possible. The political upheaval in Angola in the year 1990 also weakened the operations of De Beer Incorporation. The rebels were able to take control of major diamonds mines from the then President Dos Santos and this forced De Beer to purchase blood diamonds. Apart from Angola, other African countries, which were trading partners for De Beer, also suffered a lot of political upheaval. Countries like Sierra Leone, Democratic Republic of Congo, and Liberia were equally affected by the political upheaval and that led to reduced trading by De Beer. Trading in blood diamond later caused the company many revenues following their exposure in the year 1998. Economic factors Changes in the economy greatly affected the operations and organization of many business corporations (Gillespie, 2009). Due to hard economic times in diamond trade in the year 1999, De Beer was able to experience some shifts in its value chain (Danielle, 2005). A lot of integration in terms of forward and backward movement was experienced. Many investments in mines by the retail outlets were being experienced at that time and at the same time many mines were equally becoming retailers. This integration proved it tough for De Beer since the company returns were greatly reduced. In the same year, jeweler Tiffany and Company that has been sourcing most of diamonds from De Beer announced its withdrawal and it bought some mining concerns from Canada at a cost worth $ 104 million. These economic factors affected De Beer Company and the Company opted to safeguard its market dominance. The safeguarding practiced proved to be very expensive for this company since it was forced to buy diamonds from inflated prices. Some of the diamonds, which were purchased at inflated prices, were later sold at very low prices. The emergence of Australian Argyle Company into the diamond trade further weakened the market bases for De Beer since this company was able to produce low quality diamonds, which were later sold cheaply. The inflation in prices of diamonds from other countries where De Beer was sourcing them also made this company in the year 1990 to lose a lot of its market share (Danielle, 2005). The share price for this company was also able to reduce from 17 to 12 $ between the year, 1989 and the year 1998 and the fall in price presented a percentage drop of close to 30. Social factors These factors generally affect the demands of the various products produced by an organization. These factors circumrotate on the labor and the workforce within an organization (Gillespie, 2009). The processing of diamond in De Beer Company had several processing industries, which were helpful in the cutting and polishing of the processed diamonds. The Indians dominated the workforce in the organization and close to 1 million workers in the processing ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“DE Beers Diamond Dilemma Case Study Example | Topics and Well Written Essays - 2250 words”, n.d.)
Retrieved from https://studentshare.org/business/1486167-de-beers-diamond-dilemma
(DE Beers Diamond Dilemma Case Study Example | Topics and Well Written Essays - 2250 Words)
“DE Beers Diamond Dilemma Case Study Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/business/1486167-de-beers-diamond-dilemma.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Ethical Dilemma
Ethical Dilemma In one of her visits, she manages to see a patient, “Linet Wanyama,” a 28 year-old multigravida woman, who came with a pregnancy 5 weeks old after her last normal menstrual period. Linet Wanyama came to start attending her prenatal care for the first time in that place after moving from another town.
3 Pages(750 words)Case Study
A Diamond Personality Paper
A Diamond Personality Paper Introduction Certain factors play in the realization of success in every business venture whether small, medium, or large. One of these factors include the personality or characteristic of the main player – usually the entrepreneur who makes the decision and major actions within a given organization.
4 Pages(1000 words)Case Study
De Beers and US Anti Trust Law
De Beers slowly and steadily ensured that all the diamond mines in Africa, specifically; South Africa was in their control or was working in line with their decrees. Most of the mines in South Africa were bought out by De Beers and the others started working closely with them in order to fix the price for the rough and uncut diamonds.
3 Pages(750 words)Case Study
The illegal Diamond Trade of Sierra Leone
While taking advantage of international trade companies are trying to attain raw material at low cost, irrespective of the source. The current geopolitical situation is equally responsible for such illegal trading and resources based conflict. The war at Sierra Leone resembles an example for emergence of non-state entity with terrestrial structure.2 The element responsible for such a situation can be categorized into three major categories, like multiple routes through which the resource can be taken out of the area of production, multiple location for exchange points where resource can be traded for weapons or other goods and services that are required by the citizen.
15 Pages(3750 words)Case Study
Googles dilemma
Introduction of the case: Google is a phenomenon in itself. It has completely redefined the way in which users browse the internet. Given that the internet is a loose collection of millions (or more)
2 Pages(500 words)Case Study
De Beers
The De Beers Cartel is a organization that mines diamonds , which was set up by the South African mining magnate, Sir Ernest Oppenheimer, in 1934 ( Stefan 1993 p 5) . Over eighty percent of world sales of rough diamonds are on account of this marketer. One mine in this cartel is the Venetia Diamond Mine, South Africa's largest diamond producer, and the centre of De Beers' investments.
9 Pages(2250 words)Case Study
Nike's Dilemma
Nike’s Company Chairman, Mr Knight dismisses this scandal as a “minor blip” and it is common in endorsement deals Leonard (web). However, the company’s image and the brands tiger promotes are
1 Pages(250 words)Case Study
De Beers' recommended strategy
ould undertake first is strategy # 3 as the company’s business model to control and manage the amount of inventory to be sent in the market is no longer effective and the company needs to adopt new ways to regain its hold on the described business model and to stay
1 Pages(250 words)Case Study
Ethical dilemma
mind, after assessing the Elizabeth Smith dilemma, Elizabeth is drawing on these socially driven prejudgments regarding whether or not to maintain worker/client confidentiality as mandated by the CASW Code of Ethics. From a personal perspective, social location does, but
5 Pages(1250 words)Case Study
Ethical Dilemma
This is an ethical dilemma when people look at one thing and fail to agree if it is right or wrong. The paper discusses different scenarios to illustrate the ethical dilemma facing
1 Pages(250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Case Study on topic DE Beers Diamond Dilemma for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us