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 - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, there is backlash against globalization, central banks are concerned over increasing inflation, increasing transportation and logistics costs,
talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, 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 -
Sustainable margins compare to other players in Strategy & Execution industry
– Newmont Mining Corp. and a Mercury Spill in Peru (A) firm has clearly differentiated products in the market place. This has enabled Newmont Mercury to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Newmont Mercury to invest into research and development (R&D) 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.
Ability to recruit top talent
– Newmont Mercury is one of the leading recruiters in the industry. Managers in the Newmont Mining Corp. and a Mercury Spill in Peru (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Newmont Mercury has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Newmont Mercury 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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
Lack of clear differentiation of Newmont Mercury products
– To increase the profitability and margins on the products, Newmont Mercury needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (A), it seems that the employees of Newmont Mercury don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
Products dominated business model
– Even though Newmont Mercury 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 - Newmont Mining Corp. and a Mercury Spill in Peru (A) should strive to include more intangible value offerings along with its core products and services.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Newmont Mining Corp. and a Mercury Spill in Peru (A), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Newmont Mining Corp. and a Mercury Spill in Peru (A) HBR case study mentions - Newmont Mercury 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.
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.
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 -
Buying journey improvements
– Newmont Mercury can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Newmont Mining Corp. and a Mercury Spill in Peru (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
Shortening product life cycle
– it is one of the major threat that Newmont Mercury is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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.
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.
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.
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.
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.
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.
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.
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) .
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 Newmont Mercury in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
