Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A)
To maximize their effectiveness, color cases should be printed in color.Located in the highlands of Peru, the Tintaya copper mine has long been a source of intense conflict between local community members and mine operators. The mine, which was owned and managed first by the Peruvian state and later by BHP Billiton, stands on 2,300 hectares of land expropriated from local subsistence farmers. In 2000, to contest this loss of land, mining-related environmental degradation, and allegations of human rights abuses, a coalition of five indigenous communities forged an alliance with a group of domestic and international NGOs to build their case against the BHP Billiton and pursue it directly with the company's Australian headquarters. The outcome of these efforts was the inception of a unique corporate-community negotiation process known as the Tintaya Dialogue Table. In December 2004, after three years of negotiation, BHP Billiton and the five communities signed an agreement compensating families for lost land and livelihoods and establishing a local environmental monitoring team and community development fund. However, just as the company resolves one conflict, another group of local stakeholders emerges with new demands--ones that the company may not be able to meet. The conflict with this new group culminates in a violent takeover of the mine in May 2005, whereupon BHP Billiton staff are forced to shut down operations, abandon the mine site, and devise a new strategy for winning back local support.
Swot Analysis of "Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A)" written by V. Kasturi Rangan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mine Billiton facing as an external strategic factors. Some of the topics covered in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) case study are - Strategic Management Strategies, Corporate governance, Emerging markets, Ethics, Government, Negotiations, Public relations, Social responsibility, Strategy, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) casestudy better are - – there is increasing trade war between United States & China, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, increasing energy prices, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mine Billiton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mine Billiton operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) case study
2. Improving business portfolio management of Mine Billiton
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mine Billiton
Strengths Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mine Billiton in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Harvard Business Review case study are -
Highly skilled collaborators
– Mine Billiton has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Mine Billiton is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mine Billiton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Mine Billiton are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Mine Billiton has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Mine Billiton has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Mine Billiton has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mine Billiton has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Mine Billiton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mine Billiton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Mine Billiton is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by V. Kasturi Rangan can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Strong track record of project management
– Mine Billiton is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Mine Billiton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Mine Billiton is one of the most innovative firm in sector. Manager in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) are -
Need for greater diversity
– Mine Billiton has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Increasing silos among functional specialists
– The organizational structure of Mine Billiton is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mine Billiton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mine Billiton to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mine Billiton 's lucrative customers.
Slow to strategic competitive environment developments
– As Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) HBR case study mentions - Mine Billiton takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) can leverage the sales team experience to cultivate customer relationships as Mine Billiton is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Mine Billiton needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mine Billiton is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Mine Billiton has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Mine Billiton has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mine Billiton supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mine Billiton vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Kasturi Rangan suggests that, Mine Billiton is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) are -
Creating value in data economy
– The success of analytics program of Mine Billiton has opened avenues for new revenue streams for the organization in the industry. This can help Mine Billiton to build a more holistic ecosystem as suggested in the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) case study. Mine Billiton can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Mine Billiton to increase its market reach. Mine Billiton will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mine Billiton can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mine Billiton is facing challenges because of the dominance of functional experts in the organization. Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Mine Billiton can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Mine Billiton can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mine Billiton can use these opportunities to build new business models that can help the communities that Mine Billiton operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mine Billiton in the consumer business. Now Mine Billiton can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Mine Billiton has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mine Billiton to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Mine Billiton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mine Billiton to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Mine Billiton can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mine Billiton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mine Billiton.
Consumer confidence and its impact on Mine Billiton demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mine Billiton with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mine Billiton in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Mine Billiton needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mine Billiton can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mine Billiton business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Mine Billiton high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mine Billiton will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mine Billiton can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mine Billiton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A), Mine Billiton may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mine Billiton needs to make to build a sustainable competitive advantage.