Platmin Mining: Managing Your Stakeholders in Developing Economies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Platmin Mining: Managing Your Stakeholders in Developing Economies
This case deals with the problems that Platmin faces as it heads toward full production at a new open-cast mine in the Pilanesberg area in South Africa. Platmin is caught in a very difficult situation that is affecting the viability of the operation: the main issue is the timing of the production - investment in mining is typically heavy in the beginning, but when the mine starts producing, payback of loans is usually substantial. Any delay in production has an exaggerated effect on the payback period and, by extension, the viability of the mine. The second major issue is the economic downturn, which has seen the price of platinum decline substantially; however, this may benefit Platmin because it is a low-cost producer, and the downturn has led to some competitors leaving the industry or mothballing operations that are not viable at the current platinum price. On the other hand, while Platmin is seeing a shakeup in the industry, it is experiencing pressures on its margins, and this also has an effect on its capital funding.
Swot Analysis of "Platmin Mining: Managing Your Stakeholders in Developing Economies" written by Albert Wocke, Robert Grosse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Platmin Mine facing as an external strategic factors. Some of the topics covered in Platmin Mining: Managing Your Stakeholders in Developing Economies case study are - Strategic Management Strategies, Emerging markets, Government, Labor, Leadership, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Platmin Mining: Managing Your Stakeholders in Developing Economies casestudy better are - – supply chains are disrupted by pandemic , geopolitical disruptions, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Platmin Mining: Managing Your Stakeholders in Developing Economies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Platmin Mining: Managing Your Stakeholders in Developing Economies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Platmin Mine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Platmin Mine 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 Platmin Mining: Managing Your Stakeholders in Developing Economies can be done for the following purposes –
1. Strategic planning using facts provided in Platmin Mining: Managing Your Stakeholders in Developing Economies case study
2. Improving business portfolio management of Platmin Mine
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Platmin Mine
Strengths Platmin Mining: Managing Your Stakeholders in Developing Economies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Platmin Mine in Platmin Mining: Managing Your Stakeholders in Developing Economies Harvard Business Review case study are -
Innovation driven organization
– Platmin Mine is one of the most innovative firm in sector. Manager in Platmin Mining: Managing Your Stakeholders in Developing Economies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Platmin Mine 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 Platmin Mine in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Platmin Mine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Platmin Mine 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.
Ability to recruit top talent
– Platmin Mine is one of the leading recruiters in the industry. Managers in the Platmin Mining: Managing Your Stakeholders in Developing Economies are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Platmin Mine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– Platmin Mining: Managing Your Stakeholders in Developing Economies firm has clearly differentiated products in the market place. This has enabled Platmin Mine to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Platmin Mine to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Platmin Mining: Managing Your Stakeholders in Developing Economies 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.
Strong track record of project management
– Platmin Mine is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Platmin Mine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Platmin Mining: Managing Your Stakeholders in Developing Economies 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.
High brand equity
– Platmin Mine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Platmin Mine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Platmin Mine
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Platmin Mine does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Platmin Mine 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 Platmin Mining: Managing Your Stakeholders in Developing Economies - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Platmin Mining: Managing Your Stakeholders in Developing Economies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Platmin Mining: Managing Your Stakeholders in Developing Economies are -
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 Platmin Mine supply chain. Even after few cautionary changes mentioned in the HBR case study - Platmin Mining: Managing Your Stakeholders in Developing Economies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Platmin Mine vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mine 's lucrative customers.
Products dominated business model
– Even though Platmin Mine 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 - Platmin Mining: Managing Your Stakeholders in Developing Economies should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Platmin Mine 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.
No frontier risks strategy
– After analyzing the HBR case study Platmin Mining: Managing Your Stakeholders in Developing Economies, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mine has relatively successful track record of launching new products.
Need for greater diversity
– Platmin Mine 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.
Aligning sales with marketing
– It come across in the case study Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mining: Managing Your Stakeholders in Developing Economies can leverage the sales team experience to cultivate customer relationships as Platmin Mine is planning to shift buying processes online.
Interest costs
– Compare to the competition, Platmin Mine 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 Platmin Mining: Managing Your Stakeholders in Developing Economies, it seems that the employees of Platmin Mine don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Platmin Mine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Platmin Mining: Managing Your Stakeholders in Developing Economies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Platmin Mining: Managing Your Stakeholders in Developing Economies | 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 Platmin Mining: Managing Your Stakeholders in Developing Economies are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Platmin Mine can use these opportunities to build new business models that can help the communities that Platmin Mine operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Platmin Mine 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.
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 Platmin Mine 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.
Manufacturing automation
– Platmin Mine can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Platmin Mine 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 Platmin Mine to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Platmin Mine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Platmin Mine 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. Platmin Mine 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.
Building a culture of innovation
– managers at Platmin Mine 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 Leadership & Managing People segment.
Loyalty marketing
– Platmin Mine 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Platmin Mine 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
– Platmin Mine 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.
Better consumer reach
– The expansion of the 5G network will help Platmin Mine to increase its market reach. Platmin Mine 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.
Using analytics as competitive advantage
– Platmin Mine 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 Platmin Mining: Managing Your Stakeholders in Developing Economies - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Platmin Mine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Platmin Mining: Managing Your Stakeholders in Developing Economies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Platmin Mining: Managing Your Stakeholders in Developing Economies are -
Increasing wage structure of Platmin Mine
– 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 Platmin Mine.
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 Platmin Mine.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Platmin Mine in the Leadership & Managing People industry. The Leadership & Managing People 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
– Platmin Mine 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. Platmin Mine can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Platmin Mine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Platmin Mine is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Platmin Mine 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 Platmin Mining: Managing Your Stakeholders in Developing Economies .
Stagnating economy with rate increase
– Platmin Mine 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.
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 Platmin Mine business can come under increasing regulations regarding data privacy, data security, etc.
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 Platmin Mine in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Platmin Mining: Managing Your Stakeholders in Developing Economies, Platmin Mine may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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
– Platmin Mine has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Platmin Mine needs to keep up with the evolution of technology in the Leadership & Managing People 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 Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mining: Managing Your Stakeholders in Developing Economies 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 Platmin Mine needs to make to build a sustainable competitive advantage.