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 - – increasing energy prices, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing commodity prices,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, 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 -
Diverse revenue streams
– Newmont Mercury is present in almost all the verticals within the industry. This has provided firm in Newmont Mining Corp. and a Mercury Spill in Peru (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
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.
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.
High switching costs
– The high switching costs that Newmont Mercury 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.
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.
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.
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.
Effective Research and Development (R&D)
– Newmont Mercury has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Newmont Mining Corp. and a Mercury Spill in Peru (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Newmont Mercury has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Newmont Mercury to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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 -
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Newmont Mercury has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Newmont Mercury has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 operating costs
– Compare to the competitors, firm in the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (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 Newmont Mercury 's lucrative customers.
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.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (A), is just above the industry average. Newmont Mercury needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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 -
Creating value in data economy
– The success of analytics program of Newmont Mercury has opened avenues for new revenue streams for the organization in the industry. This can help Newmont Mercury to build a more holistic ecosystem as suggested in the Newmont Mining Corp. and a Mercury Spill in Peru (A) case study. Newmont Mercury can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Newmont Mercury can use these opportunities to build new business models that can help the communities that Newmont Mercury operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Newmont Mercury can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Newmont Mining Corp. and a Mercury Spill in Peru (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Newmont Mercury 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.
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.
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.
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.
Leveraging digital technologies
– Newmont Mercury 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.
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.
Learning at scale
– Online learning technologies has now opened space for Newmont Mercury 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.
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 -
High dependence on third party suppliers
– Newmont Mercury 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.
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.
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.
Regulatory challenges
– Newmont Mercury needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Newmont Mercury needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Consumer confidence and its impact on Newmont Mercury 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.
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.
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) .
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 .
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.
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.