STRATEGIC MANAGEMENT

Strategic Management

[Name of the Institute]

Executive Summary2

Introduction3

Discussion3

Debeers Diamond3

Pest Analysis3

Political factors3

Social Factors4

Technological Factors4

Environmental Factors4

Micheal Porter's Five Forces Model4

Potential Entrants4

The power of Supplier5

The Power of Sight Holder5

The Power of Buyer5

The threat of Substitutes5

SWOT Analysis5

Strength6

Weakness6

Opportunities6

Threats6

Strategy of DeBeers Diamond7

Conclusion8

Reommendations9

References10

Executive Summary

The main focus of the research is on “DeBeers Diamond” and its environmental analysis”. There are three main parts of the paper. The first part of the paper discusses about the brief introduction of the company. In the discussion I have covered environmental analysis in which PEST analysis and Porter's five forces are covered. It also analyzes the business strategy of diamond in the year 2008. The industrial analysis is also discussed briefly in the paper. Finally in the conclusion it covers all the main points of the paper and in the end recommendations are given in order to sustain their competitive advantage in the future.

Strategic Management

Introduction

DeBeers Diamond is the largest and the biggest diamond producer of the world. It is basically the families of the company that dominant the diamond, diamond hops, diamond mining, diamond trading, industrial manufacturing of sectors of diamond. It is also an active in the category of engineering for the industrial diamond mining, large scale alluvial and Seep Sea however the mining takes place in Canada, Namibia, South Africa and Botswana. It was formed in the year 1927 by Cecil Rhodes and Alfred Beit and Rothschild has financed it. (De Beer, 2000)

Discussion

DeBeers Diamond

PEST Analysis

Political factors

Amendment on diamond laws by the countries of South Africa emphasis on the supporting and building the local diamond related industries such as polishing and cutting. The involvement of DeBeers with US Sherman laws of antitrust leads its business being prohibited from the market of United States of America. Turn moil in the diamond countries such as Angola, Sierra Leone, and Liberia as well as Congo resulted in the rebel force using its illicit diamond trade to finance their armed conflicts. (Cilliers, 2000)

Economic Factors

The world production of the diamond rough grew high lightened the upward trend do diamond pieces. Long term trend of increasing level of forward and backward integration changed the way to grow a diamond business and build a brand.

Social Factors

The buying behavior of the consumption of diamond was affected by the number of campaign of non advertisement, women wear diamond ring as an expression of personal style and man have shown their interest in buying the diamond and presenting it to their lovers.

Technological Factors

The technology that was used to make the diamonds in the industry started to make lab grown diamonds. Modern processes and technology such as CVD that can produce flawless synthetic diamonds that can produce number of selection of colors. (Kanfer, 1995)

Environmental Factors

Establishment of Diamond trading company Botswana upgraded the countries of industrial diamond level from mining and sorting of sales and marketing. This movement did not only improve the conditions of environment but it has also created job opportunities of the job.

Michael Porter's Five Forces Model

Potential Entrants

DeBeers takes the dominant position in the market of diamond and also it made ...