Case Study Description of Barrick Gold Corporation - Tanzania
This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.
Authors :: Aloysius Newenham-Kahindi, Paul W. Beamish
Topics :: Leadership & Managing People
Tags :: Human resource management, International business, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Barrick Gold Corporation - Tanzania" written by Aloysius Newenham-Kahindi, Paul W. Beamish includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Barrick Mnes facing as an external strategic factors. Some of the topics covered in Barrick Gold Corporation - Tanzania case study are - Strategic Management Strategies, Human resource management, International business, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Barrick Gold Corporation - Tanzania casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing energy prices, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Barrick Gold Corporation - Tanzania
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Barrick Gold Corporation - Tanzania case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Barrick Mnes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Barrick Mnes 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 Barrick Gold Corporation - Tanzania can be done for the following purposes –
1. Strategic planning using facts provided in Barrick Gold Corporation - Tanzania case study
2. Improving business portfolio management of Barrick Mnes
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 Barrick Mnes
Strengths Barrick Gold Corporation - Tanzania | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Barrick Mnes in Barrick Gold Corporation - Tanzania Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Barrick Mnes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Barrick Mnes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Barrick Gold Corporation - Tanzania 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.
Ability to recruit top talent
– Barrick Mnes is one of the leading recruiters in the industry. Managers in the Barrick Gold Corporation - Tanzania are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Barrick Mnes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Barrick Mnes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Barrick Mnes 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 Barrick Mnes in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Barrick Mnes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Barrick Mnes 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.
Innovation driven organization
– Barrick Mnes is one of the most innovative firm in sector. Manager in Barrick Gold Corporation - Tanzania Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Barrick Mnes in the sector have low bargaining power. Barrick Gold Corporation - Tanzania has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Barrick Mnes to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Barrick Mnes 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 Aloysius Newenham-Kahindi, Paul W. Beamish 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.
Diverse revenue streams
– Barrick Mnes is present in almost all the verticals within the industry. This has provided firm in Barrick Gold Corporation - Tanzania 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Barrick Mnes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Barrick Mnes 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 Barrick Gold Corporation - Tanzania 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.
Weaknesses Barrick Gold Corporation - Tanzania | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Barrick Gold Corporation - Tanzania are -
High cash cycle compare to competitors
Barrick Mnes 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 strategic competitive environment developments
– As Barrick Gold Corporation - Tanzania HBR case study mentions - Barrick Mnes 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.
Products dominated business model
– Even though Barrick Mnes 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 - Barrick Gold Corporation - Tanzania should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Barrick Gold Corporation - Tanzania, is just above the industry average. Barrick Mnes needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Barrick Gold Corporation - Tanzania 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 Barrick Mnes 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Barrick Gold Corporation - Tanzania 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 Barrick Mnes has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Barrick Mnes 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. Barrick Mnes 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Barrick Mnes is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Barrick Gold Corporation - Tanzania can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Barrick Mnes 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.
No frontier risks strategy
– After analyzing the HBR case study Barrick Gold Corporation - Tanzania, 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.
Lack of clear differentiation of Barrick Mnes products
– To increase the profitability and margins on the products, Barrick Mnes needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Barrick Gold Corporation - Tanzania | 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 Barrick Gold Corporation - Tanzania are -
Learning at scale
– Online learning technologies has now opened space for Barrick Mnes 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.
Creating value in data economy
– The success of analytics program of Barrick Mnes has opened avenues for new revenue streams for the organization in the industry. This can help Barrick Mnes to build a more holistic ecosystem as suggested in the Barrick Gold Corporation - Tanzania case study. Barrick Mnes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Barrick Mnes can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Barrick Mnes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Barrick Mnes can use these opportunities to build new business models that can help the communities that Barrick Mnes operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Barrick Mnes to increase its market reach. Barrick Mnes 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
– Barrick Mnes 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 Barrick Gold Corporation - Tanzania - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Barrick Mnes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Barrick Mnes in the consumer business. Now Barrick Mnes can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Barrick Mnes in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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. Barrick Mnes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Barrick Mnes 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Barrick Mnes is facing challenges because of the dominance of functional experts in the organization. Barrick Gold Corporation - Tanzania 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Barrick Mnes 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 Barrick Mnes to hire the very best people irrespective of their geographical location.
Threats Barrick Gold Corporation - Tanzania External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Barrick Gold Corporation - Tanzania are -
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 Barrick Mnes.
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 Barrick Mnes business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Barrick Mnes 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Barrick Mnes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Barrick Mnes has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Barrick Mnes 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.
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 wage structure of Barrick Mnes
– 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 Barrick Mnes.
Regulatory challenges
– Barrick Mnes 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 Leadership & Managing People industry regulations.
Stagnating economy with rate increase
– Barrick Mnes 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.
Shortening product life cycle
– it is one of the major threat that Barrick Mnes is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Barrick Mnes needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Barrick Mnes 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. Barrick Mnes can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Barrick Mnes 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.
Weighted SWOT Analysis of Barrick Gold Corporation - Tanzania 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 Barrick Gold Corporation - Tanzania 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 Barrick Gold Corporation - Tanzania 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 Barrick Gold Corporation - Tanzania 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 Barrick Gold Corporation - Tanzania 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 Barrick Mnes needs to make to build a sustainable competitive advantage.