Mining and Corporate Social Responsibility: Newmont Mining Corporation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mining and Corporate Social Responsibility: Newmont Mining Corporation
The case takes place in Peru in the aftermath of the worst mercury spill in history by a transportation contractor for Newmont Mining Corporation. Newmont's senior vice president and chief administrative officer is sent to Peru to assess the situation. The subsequent audit revealed that Newmont's mining operations in Peru met neither U.S. nor Peruvian mining standards. "There were water issues, there were air issues, there were road issues, there were health issues - all arising out of the mining operation," the report concluded. The investigation also found that Newmont executives could be subject to "criminal prosecution and imprisonment" for the company's actions in Peru. More importantly, the company had violated its "social license" with local communities, putting in jeopardy its ability to conduct business in that country.
Swot Analysis of "Mining and Corporate Social Responsibility: Newmont Mining Corporation" written by Sheila M. Puffer, David T.A. Wesley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mining Newmont facing as an external strategic factors. Some of the topics covered in Mining and Corporate Social Responsibility: Newmont Mining Corporation case study are - Strategic Management Strategies, Globalization, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Mining and Corporate Social Responsibility: Newmont Mining Corporation casestudy better are - – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, technology disruption,
competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Mining and Corporate Social Responsibility: Newmont Mining Corporation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mining and Corporate Social Responsibility: Newmont Mining Corporation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mining Newmont, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mining Newmont 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation can be done for the following purposes –
1. Strategic planning using facts provided in Mining and Corporate Social Responsibility: Newmont Mining Corporation case study
2. Improving business portfolio management of Mining Newmont
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 Mining Newmont
Strengths Mining and Corporate Social Responsibility: Newmont Mining Corporation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mining Newmont in Mining and Corporate Social Responsibility: Newmont Mining Corporation Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Mining and Corporate Social Responsibility: Newmont Mining Corporation firm has clearly differentiated products in the market place. This has enabled Mining Newmont to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mining Newmont to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Mining Newmont 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Mining Newmont 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Mining Newmont 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 Mining Newmont is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mining and Corporate Social Responsibility: Newmont Mining Corporation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Mining Newmont is present in almost all the verticals within the industry. This has provided firm in Mining and Corporate Social Responsibility: Newmont Mining Corporation 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.
Organizational Resilience of Mining Newmont
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mining Newmont does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Mining Newmont has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mining and Corporate Social Responsibility: Newmont Mining Corporation 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.
Cross disciplinary teams
– Horizontal connected teams at the Mining Newmont 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
– Mining Newmont is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Mining Newmont 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 Mining Newmont in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Mining Newmont in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Mining Newmont in the sector have low bargaining power. Mining and Corporate Social Responsibility: Newmont Mining Corporation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mining Newmont to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Mining and Corporate Social Responsibility: Newmont Mining Corporation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mining and Corporate Social Responsibility: Newmont Mining Corporation are -
Low market penetration in new markets
– Outside its home market of Mining Newmont, firm in the HBR case study Mining and Corporate Social Responsibility: Newmont Mining Corporation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mining and Corporate Social Responsibility: Newmont Mining Corporation, is just above the industry average. Mining Newmont 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.
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 Mining Newmont supply chain. Even after few cautionary changes mentioned in the HBR case study - Mining and Corporate Social Responsibility: Newmont Mining Corporation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mining Newmont vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Mining Newmont products
– To increase the profitability and margins on the products, Mining Newmont needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Mining Newmont 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.
Interest costs
– Compare to the competition, Mining Newmont 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mining and Corporate Social Responsibility: Newmont Mining Corporation, it seems that the employees of Mining Newmont 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.
Aligning sales with marketing
– It come across in the case study Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation can leverage the sales team experience to cultivate customer relationships as Mining Newmont is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Mining Newmont 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mining Newmont is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mining and Corporate Social Responsibility: Newmont Mining Corporation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mining and Corporate Social Responsibility: Newmont Mining Corporation, in the dynamic environment Mining Newmont has struggled to respond to the nimble upstart competition. Mining Newmont has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Mining and Corporate Social Responsibility: Newmont Mining Corporation | 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mining Newmont 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 Mining Newmont to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mining Newmont 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.
Learning at scale
– Online learning technologies has now opened space for Mining Newmont 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mining Newmont can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Mining Newmont 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.
Loyalty marketing
– Mining Newmont has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Building a culture of innovation
– managers at Mining Newmont 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mining Newmont is facing challenges because of the dominance of functional experts in the organization. Mining and Corporate Social Responsibility: Newmont Mining Corporation 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.
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 Mining Newmont 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.
Developing new processes and practices
– Mining Newmont 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.
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. Mining Newmont can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mining Newmont 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.
Better consumer reach
– The expansion of the 5G network will help Mining Newmont to increase its market reach. Mining Newmont 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.
Threats Mining and Corporate Social Responsibility: Newmont Mining Corporation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mining and Corporate Social Responsibility: Newmont Mining Corporation are -
Regulatory challenges
– Mining Newmont 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.
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 Mining Newmont.
Consumer confidence and its impact on Mining Newmont 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.
High dependence on third party suppliers
– Mining Newmont 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mining and Corporate Social Responsibility: Newmont Mining Corporation, Mining Newmont 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 .
Environmental challenges
– Mining Newmont 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. Mining Newmont can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mining Newmont 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mining Newmont with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Mining Newmont business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Mining Newmont
– 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 Mining Newmont.
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.
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. Mining Newmont 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
– Mining Newmont has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mining Newmont 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.
Weighted SWOT Analysis of Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining Newmont needs to make to build a sustainable competitive advantage.