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Assignment 3 5117.docx BUS 5117: Strategic Making and Management Written Assignment 3

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Assignment 3 5117.docx BUS 5117: Strategic Making and Management Written Assignment 3 De Beers is the world™s Largest diamond company that deals in exploration, diamond mining, diamond retail, diamond trading and i ...

Assignment 3 5117.docx BUS 5117: Strategic Making and Management Written Assignment 3 De Beers is the world™s Largest diamond company that deals in exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing in South Africa in 1988 and expanded its stores worldwide (McAdams, D.& Reavis, C. ,2008). De Beers controlled most of the diamond cutting and publishing industry and while DeBeers held a monopoly in the market at one time produced 45% of the world™s rough diamonds and sold 80% of total supply (McAdams, D. & Reavis, C. ,2008) DeBeers send diamond to India for cutting and polishing because it costs only $10 per carat and cheaper than other countries. PESTLE Analysis of DeBeers: PESTEL is one of the most important tools which analyses the impacts of external issues. PESTEL reflects the names of the six segments of the general environment: 1. Political, 2. Economic, 3. Social, 4, technology, 5. Environment, and 6. Legal (Ketchen, D & Short, J.,2012). Political Factors: œDiamonds from Botswana were considered valuable enough to give the government of the country a 15 percent share in De Beers in 1969. All rough-diamond mining and distributing is done by Debswana, making it the biggest non-government employer in the country. The deal is still in place today, and there's even talk of increasing Botswana's share to 25 percent (Goldschein,2011). DeBeers cut diamond in India because India was the cheapest place to cut diamond and lots of money going to ou. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .

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