Strategic Issues Relating to Global Minning and Metals Industry

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GLOBAL CORPORATE STRATEGY ASSIGNMENT Submitted To UNIVERSITY OF SUNDERLAND In Partial Fulfillment Of the Requirement for (MBA) Business Administration By BABAJIDE TOLULOPE OYEDUNTAN STUDENT NO: 119134076 Word Count: 3,538 May 15, 2012 PGBM 16 GLOBAL CORPORATE STRATEGY -SEGI & TOP UP- STRATEGIC ISSUES RELATING TO GLOBAL MINNING AND METALS INDUSTRY MINING FOR SYNERGIES: BILLITON’S QUEST TO BE WORLD CLASS Question One Critically examine the main arguments for and against globalization in the global mining and metals industry in terms of: (a) The threat of new entrants and substitutes in emerging markets Metal and mining is one of the oldest industries in the world. Companies doing business in this industry are facing and will continue to face competition from numerous forces because natural and mineral resources are popular than ever. Porter (1980) provided dynamic and focused natural analysis called Porter’s Five Forces of analysis. The metals and mining sector consists of companies involved in the mining and production of copper, silver, gold, coal, bauxite, iron, lead, and nickel. This sector also includes companies that mine and produce diamonds and other precious stones. Companies that are involved in metal processing and metal distribution, such as steel and aluminum, are also included in this sector. The metals & mining industry consists of companies involved in the process of extracting precious ores from the earth. This process involves the exploration of land, the mining of that land leading to the processing and smelting of the precious ores. The industry is very capital intensive. Constructing mines and building production facilities requires huge sums of capital. Long-term survival requires heavy expenditures to finance production and exploration.

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