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 - – increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, there is backlash against globalization, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
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.
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.
Innovation driven organization
– Mining Newmont is one of the most innovative firm in sector. Manager in Mining and Corporate Social Responsibility: Newmont Mining Corporation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Mining Newmont has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mining Newmont 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.
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.
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.
Operational resilience
– The operational resilience strategy in the Mining and Corporate Social Responsibility: Newmont Mining Corporation 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.
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.
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.
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.
Ability to recruit top talent
– Mining Newmont is one of the leading recruiters in the industry. Managers in the Mining and Corporate Social Responsibility: Newmont Mining Corporation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mining Newmont digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mining Newmont 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 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 -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining Newmont has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Mining Newmont is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mining Newmont needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mining Newmont to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Mining and Corporate Social Responsibility: Newmont Mining Corporation HBR case study mentions - Mining Newmont 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
– 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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Mining Newmont 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.
Products dominated business model
– Even though Mining Newmont 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 - Mining and Corporate Social Responsibility: Newmont Mining Corporation should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Mining and Corporate Social Responsibility: Newmont Mining Corporation 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 Mining Newmont 's lucrative customers.
High cash cycle compare to competitors
Mining Newmont 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.
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.
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.
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 -
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.
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.
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. Mining Newmont 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. Mining Newmont 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.
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.
Creating value in data economy
– The success of analytics program of Mining Newmont has opened avenues for new revenue streams for the organization in the industry. This can help Mining Newmont to build a more holistic ecosystem as suggested in the Mining and Corporate Social Responsibility: Newmont Mining Corporation case study. Mining Newmont can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.
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. Mining Newmont can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mining Newmont 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, Mining and Corporate Social Responsibility: Newmont Mining Corporation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Mining Newmont 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mining Newmont to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Leveraging digital technologies
– Mining Newmont 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.
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.
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 -
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.
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.
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.
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.
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 .
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mining Newmont 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 Mining and Corporate Social Responsibility: Newmont Mining Corporation .
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 Mining Newmont in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
Stagnating economy with rate increase
– Mining Newmont 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.
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.