Newmont Mining Corp. and a Mercury Spill in Peru (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Newmont Mining Corp. and a Mercury Spill in Peru (A)
The CEO of Newmont Mining Corporation (Newmont) had learned that a subcontractor's truck en route to Lima from Yanacocha, a gold mine operated by Newmont, spilled mercury along the highway and in small villages. Local residents had picked up some mercury with their bare hands and taken it to their homes. The CEO was trying to determine the best way to handle the situation. This A case describes the mine developer's history, the operations at Newmont's most profitable gold mine, the significance of foreign investment to Peru's economy, the environmental impact of gold mining and the local and anti-mining movements' responses to mine operations. In the B case, Newmont Mining Corp. and a Mercury Spill in Peru (B) 9B13M003, the new CEO is trying to decide what else Newmont is morally required to implement before continuing to operate Yanacocha, and Newmont's other mines, successfully. Authors Jaana Woiceshyn and Allan Ingelson are affiliated with the University of Calgary.
Swot Analysis of "Newmont Mining Corp. and a Mercury Spill in Peru (A)" written by Jaana Woiceshyn, Allan Ingelson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Newmont Mercury facing as an external strategic factors. Some of the topics covered in Newmont Mining Corp. and a Mercury Spill in Peru (A) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Newmont Mining Corp. and a Mercury Spill in Peru (A) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Newmont Mining Corp. and a Mercury Spill in Peru (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Newmont Mining Corp. and a Mercury Spill in Peru (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Newmont Mercury, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Newmont Mercury 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 Newmont Mining Corp. and a Mercury Spill in Peru (A) can be done for the following purposes –
1. Strategic planning using facts provided in Newmont Mining Corp. and a Mercury Spill in Peru (A) case study
2. Improving business portfolio management of Newmont Mercury
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 Newmont Mercury
Strengths Newmont Mining Corp. and a Mercury Spill in Peru (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Newmont Mercury in Newmont Mining Corp. and a Mercury Spill in Peru (A) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Newmont Mercury 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.
Strong track record of project management
– Newmont Mercury is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Newmont Mercury is one of the most innovative firm in sector. Manager in Newmont Mining Corp. and a Mercury Spill in Peru (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Newmont Mining Corp. and a Mercury Spill in Peru (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.
Superior customer experience
– The customer experience strategy of Newmont Mercury in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Newmont Mercury
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Newmont Mercury does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Newmont Mercury is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Newmont Mercury in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Newmont Mercury 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 Newmont Mercury is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Newmont Mining Corp. and a Mercury Spill in Peru (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Newmont Mercury in the sector have low bargaining power. Newmont Mining Corp. and a Mercury Spill in Peru (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Newmont Mercury to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Newmont Mercury has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Newmont Mining Corp. and a Mercury Spill in Peru (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.
Analytics focus
– Newmont Mercury 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 Jaana Woiceshyn, Allan Ingelson 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Newmont Mercury digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Newmont Mercury has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Newmont Mining Corp. and a Mercury Spill in Peru (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Newmont Mining Corp. and a Mercury Spill in Peru (A) are -
Low market penetration in new markets
– Outside its home market of Newmont Mercury, firm in the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Newmont Mercury 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.
Slow decision making process
– As mentioned earlier in the report, Newmont Mercury has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Newmont Mercury even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Newmont Mining Corp. and a Mercury Spill in Peru (A), in the dynamic environment Newmont Mercury has struggled to respond to the nimble upstart competition. Newmont Mercury has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Newmont Mining Corp. and a Mercury Spill in Peru (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Newmont Mercury has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Newmont Mercury 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 cash cycle compare to competitors
Newmont Mercury has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Newmont Mercury 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.
Aligning sales with marketing
– It come across in the case study Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (A) can leverage the sales team experience to cultivate customer relationships as Newmont Mercury is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Newmont Mercury is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Newmont Mining Corp. and a Mercury Spill in Peru (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.
Increasing silos among functional specialists
– The organizational structure of Newmont Mercury is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Newmont Mercury needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Newmont Mercury to focus more on services rather than just following the product oriented approach.
Opportunities Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (A) are -
Building a culture of innovation
– managers at Newmont Mercury 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.
Manufacturing automation
– Newmont Mercury can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Newmont Mercury to increase its market reach. Newmont Mercury 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.
Developing new processes and practices
– Newmont Mercury can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Newmont Mercury can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Newmont Mercury can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Newmont Mercury 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 Newmont Mining Corp. and a Mercury Spill in Peru (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Newmont Mercury to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Newmont Mercury 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Newmont Mercury in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Newmont Mercury is facing challenges because of the dominance of functional experts in the organization. Newmont Mining Corp. and a Mercury Spill in Peru (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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Newmont Mercury can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Newmont Mercury can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Newmont Mercury to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Newmont Mercury to hire the very best people irrespective of their geographical location.
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. Newmont Mercury can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Newmont Mining Corp. and a Mercury Spill in Peru (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (A) are -
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. Newmont Mercury 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Newmont Mercury in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Newmont Mercury 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 Newmont Mining Corp. and a Mercury Spill in Peru (A) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Newmont Mercury with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Newmont Mercury has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Newmont Mercury needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Newmont Mercury
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Newmont Mercury.
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 Newmont Mercury business can come under increasing regulations regarding data privacy, data security, etc.
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 Newmont Mercury.
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.
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. Newmont Mercury can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Newmont Mercury can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Newmont Mercury 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. Newmont Mercury can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Newmont Mining Corp. and a Mercury Spill in Peru (A), Newmont Mercury 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 Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mercury needs to make to build a sustainable competitive advantage.