Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B)
Engaging local stakeholders and building strong relations has become a strategic imperative for multinational firms in the often politically charged mining, oil, and gas sectors. For BHP Billiton, the world's second largest mining company, its Tintaya copper mine in Peru has long been a source of intense conflict. The mine--which was owned and managed first by the Peruvian state, and later by BHP Billiton--stands on land expropriated from local subsistence farmers. In 2000, to contest this loss of land, mining-related environmental degradation, and allegations of human rights abuses, a coalition of five indigenous communities forged an alliance with a group of domestic and international NGOs (nongovernmental organizations) to build their case against BHP Billiton and pursue it directly with the company's Australian headquarters. The outcome of these efforts was the inception of a unique corporate-community negotiation process known as the Tintaya Dialogue Table. In December 2004, after three years of negotiation, BHP Billiton and the five communities signed an agreement compensating families for lost land and livelihoods, and establishing a local environmental monitoring team and community development fund. However, just as the company resolves one conflict, another group of local stakeholders emerges with new demands--demands that this time the company may not be able to meet. The conflict with this new group culminates in a violent takeover of the mine in May 2005, whereupon BHP Billiton staff are forced to shut down operations, abandon the mine site, and devise a new strategy for winning back local support.
Authors :: Brooke Barton, Ezequiel Reficco, V. Kasturi Rangan
Swot Analysis of "Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B)" written by Brooke Barton, Ezequiel Reficco, V. Kasturi Rangan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Billiton Bhp facing as an external strategic factors. Some of the topics covered in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) case study are - Strategic Management Strategies, Emerging markets, Negotiations, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) casestudy better are - – increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, increasing commodity prices, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , geopolitical disruptions, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Billiton Bhp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Billiton Bhp 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) case study
2. Improving business portfolio management of Billiton Bhp
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 Billiton Bhp
Strengths Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Billiton Bhp in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Billiton Bhp 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 Billiton Bhp in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Billiton Bhp 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Billiton Bhp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Billiton Bhp 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.
Training and development
– Billiton Bhp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) firm has clearly differentiated products in the market place. This has enabled Billiton Bhp to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Billiton Bhp to invest into research and development (R&D) and innovation.
Strong track record of project management
– Billiton Bhp is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Billiton Bhp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Billiton Bhp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Billiton Bhp is present in almost all the verticals within the industry. This has provided firm in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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.
Innovation driven organization
– Billiton Bhp is one of the most innovative firm in sector. Manager in Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Billiton Bhp 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 Brooke Barton, Ezequiel Reficco, V. Kasturi Rangan 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.
Ability to recruit top talent
– Billiton Bhp is one of the leading recruiters in the industry. Managers in the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Billiton Bhp in the sector have low bargaining power. Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Billiton Bhp to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) are -
Skills based hiring
– The stress on hiring functional specialists at Billiton Bhp 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Billiton Bhp 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Brooke Barton, Ezequiel Reficco, V. Kasturi Rangan suggests that, Billiton Bhp is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B), it seems that the employees of Billiton Bhp 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.
Low market penetration in new markets
– Outside its home market of Billiton Bhp, firm in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Billiton Bhp has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Billiton Bhp 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Billiton Bhp is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) can leverage the sales team experience to cultivate customer relationships as Billiton Bhp is planning to shift buying processes online.
Lack of clear differentiation of Billiton Bhp products
– To increase the profitability and margins on the products, Billiton Bhp needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Billiton Bhp 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.
Opportunities Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) | 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) are -
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 Billiton Bhp 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Billiton Bhp 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
– Billiton Bhp 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.
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. Billiton Bhp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Billiton Bhp 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Billiton Bhp 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 Billiton Bhp 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, Billiton Bhp 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Billiton Bhp can use these opportunities to build new business models that can help the communities that Billiton Bhp 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 Billiton Bhp to increase its market reach. Billiton Bhp 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.
Building a culture of innovation
– managers at Billiton Bhp 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. Billiton Bhp 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. Billiton Bhp 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.
Creating value in data economy
– The success of analytics program of Billiton Bhp has opened avenues for new revenue streams for the organization in the industry. This can help Billiton Bhp to build a more holistic ecosystem as suggested in the Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) case study. Billiton Bhp can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Billiton Bhp 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.
Threats Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) are -
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. Billiton Bhp needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Billiton Bhp 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.
Increasing wage structure of Billiton Bhp
– 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 Billiton Bhp.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Billiton Bhp will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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. Billiton Bhp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Billiton Bhp.
Stagnating economy with rate increase
– Billiton Bhp 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Billiton Bhp 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) .
Consumer confidence and its impact on Billiton Bhp 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B), Billiton Bhp 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 .
Regulatory challenges
– Billiton Bhp 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 Billiton Bhp business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) 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 Billiton Bhp needs to make to build a sustainable competitive advantage.
