Africa Strategy of China Nonferrous Metal Mining Group SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Africa Strategy of China Nonferrous Metal Mining Group
Founded in 1983, China Nonferrous Metal Mining (Group) Co., Ltd. ("CNMC") is one of the earliest and largest global Chinese nonferrous metal industrial enterprises. It has investments and projects in 27 countries and trade networks in nearly 100 countries with a particular focus in Africa. CNMC has been exploiting mineral resources in Zambia since 1998, becoming one of the most important copper industry enterprises in the country. In 2013, CNMC was included in the Fortune Global 500 for the first time, ranking 482nd with operating revenues of 24 billion USD. In 2015, CNMC ranked 390th among the Fortune Global 500. CNMC has been actively committed to becoming a bellwether of "going global" among Chinese enterprises, making great contribution to Africa by promoting mutually beneficial cooperation. Confronted with intensifying competition in China and overseas, CNMC leaders look to the future and endeavor to further develop African businesses, to strengthen CNMC's overall competitiveness, and to fulfill sustainable development, on the basis of its international expansion strategy.
Authors :: F. Warren McFarlan, Jie Jiao, Dayong Yang, Shanshan Cao
Swot Analysis of "Africa Strategy of China Nonferrous Metal Mining Group" written by F. Warren McFarlan, Jie Jiao, Dayong Yang, Shanshan Cao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cnmc Nonferrous facing as an external strategic factors. Some of the topics covered in Africa Strategy of China Nonferrous Metal Mining Group case study are - Strategic Management Strategies, Globalization and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Africa Strategy of China Nonferrous Metal Mining Group casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, technology disruption, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%,
central banks are concerned over increasing inflation, increasing energy prices, etc
Introduction to SWOT Analysis of Africa Strategy of China Nonferrous Metal Mining Group
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Africa Strategy of China Nonferrous Metal Mining Group case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cnmc Nonferrous, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cnmc Nonferrous 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 Africa Strategy of China Nonferrous Metal Mining Group can be done for the following purposes –
1. Strategic planning using facts provided in Africa Strategy of China Nonferrous Metal Mining Group case study
2. Improving business portfolio management of Cnmc Nonferrous
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 Cnmc Nonferrous
Strengths Africa Strategy of China Nonferrous Metal Mining Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cnmc Nonferrous in Africa Strategy of China Nonferrous Metal Mining Group Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cnmc Nonferrous digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cnmc Nonferrous 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.
Operational resilience
– The operational resilience strategy in the Africa Strategy of China Nonferrous Metal Mining Group 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.
Learning organization
- Cnmc Nonferrous 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 Cnmc Nonferrous is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Africa Strategy of China Nonferrous Metal Mining Group Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Cnmc Nonferrous
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cnmc Nonferrous does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Cnmc Nonferrous 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 Cnmc Nonferrous in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Cnmc Nonferrous is one of the most innovative firm in sector. Manager in Africa Strategy of China Nonferrous Metal Mining Group Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Cnmc Nonferrous has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cnmc Nonferrous to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Africa Strategy of China Nonferrous Metal Mining Group firm has clearly differentiated products in the market place. This has enabled Cnmc Nonferrous to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cnmc Nonferrous to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Cnmc Nonferrous in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Cnmc Nonferrous 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 Africa Strategy of China Nonferrous Metal Mining Group - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Cnmc Nonferrous 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.
Successful track record of launching new products
– Cnmc Nonferrous has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cnmc Nonferrous 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.
Weaknesses Africa Strategy of China Nonferrous Metal Mining Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Africa Strategy of China Nonferrous Metal Mining Group are -
Workers concerns about automation
– As automation is fast increasing in the segment, Cnmc Nonferrous 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.
High bargaining power of channel partners
– Because of the regulatory requirements, F. Warren McFarlan, Jie Jiao, Dayong Yang, Shanshan Cao suggests that, Cnmc Nonferrous 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.
Slow to strategic competitive environment developments
– As Africa Strategy of China Nonferrous Metal Mining Group HBR case study mentions - Cnmc Nonferrous 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Africa Strategy of China Nonferrous Metal Mining Group 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 Cnmc Nonferrous 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Cnmc Nonferrous is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cnmc Nonferrous needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cnmc Nonferrous to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cnmc Nonferrous is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Africa Strategy of China Nonferrous Metal Mining Group can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Cnmc Nonferrous has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cnmc Nonferrous even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Cnmc Nonferrous, firm in the HBR case study Africa Strategy of China Nonferrous Metal Mining Group needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Africa Strategy of China Nonferrous Metal Mining Group, it seems that the employees of Cnmc Nonferrous 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.
Skills based hiring
– The stress on hiring functional specialists at Cnmc Nonferrous has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Cnmc Nonferrous 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.
Opportunities Africa Strategy of China Nonferrous Metal Mining Group | 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 Africa Strategy of China Nonferrous Metal Mining Group are -
Learning at scale
– Online learning technologies has now opened space for Cnmc Nonferrous 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.
Building a culture of innovation
– managers at Cnmc Nonferrous 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.
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. Cnmc Nonferrous can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cnmc Nonferrous is facing challenges because of the dominance of functional experts in the organization. Africa Strategy of China Nonferrous Metal Mining Group 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cnmc Nonferrous 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, Cnmc Nonferrous can use these opportunities to build new business models that can help the communities that Cnmc Nonferrous operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cnmc Nonferrous 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, Africa Strategy of China Nonferrous Metal Mining Group, 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. Cnmc Nonferrous can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Cnmc Nonferrous 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 Africa Strategy of China Nonferrous Metal Mining Group - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cnmc Nonferrous to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cnmc Nonferrous can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Cnmc Nonferrous has opened avenues for new revenue streams for the organization in the industry. This can help Cnmc Nonferrous to build a more holistic ecosystem as suggested in the Africa Strategy of China Nonferrous Metal Mining Group case study. Cnmc Nonferrous can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Cnmc Nonferrous 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. Cnmc Nonferrous 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.
Manufacturing automation
– Cnmc Nonferrous 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.
Threats Africa Strategy of China Nonferrous Metal Mining Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Africa Strategy of China Nonferrous Metal Mining Group are -
Environmental challenges
– Cnmc Nonferrous 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. Cnmc Nonferrous can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Cnmc Nonferrous business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Cnmc Nonferrous 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 Cnmc Nonferrous.
Regulatory challenges
– Cnmc Nonferrous 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.
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. Cnmc Nonferrous 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cnmc Nonferrous with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Cnmc Nonferrous can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Cnmc Nonferrous
– 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 Cnmc Nonferrous.
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. Cnmc Nonferrous needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
High dependence on third party suppliers
– Cnmc Nonferrous 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.
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.
Weighted SWOT Analysis of Africa Strategy of China Nonferrous Metal Mining Group 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 Africa Strategy of China Nonferrous Metal Mining Group 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 Africa Strategy of China Nonferrous Metal Mining Group 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 Africa Strategy of China Nonferrous Metal Mining Group 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 Africa Strategy of China Nonferrous Metal Mining Group 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 Cnmc Nonferrous needs to make to build a sustainable competitive advantage.
