In early 1990s, DeBeers ruled the diamond industry (while at one time, it produced 45% of the world’s rough diamond and sold 80% of total supply). Its market dominance enabled its Central Selling Orgainzation to choose whom to sell to, how much to sell, and at what price.(掌控钻石产业，掌握供应链，决定买家，销售量已经价格。) First hit: Collapse of the Soviet Union（苏联解体，重要合同终止）. Second hit: Australian mine terminated contract with DeBeers（合同终止）. Finally: Emergence of Canada as a producer(加拿大大量的矿区都不受DEBEERS控制). Additionally:
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their partnership with LVMH they’ve been able to increase their brand recognition and represent themselves al over the world. * The acquisition of new mines in Canada brought is another opportunity for the company. Finaly we the threats for DeBeers company: * The diamond market is well known for its fierce competition: not only from competitors but as well as not being able to buy certain mines in countries as Canada and Australia. * Negative publicity as the association with blood
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Business Model of De Beers: Rhodes and Oppenheimer followed both a strategy of supply control. Due to the fact that supply overtook demand, the prices for diamonds were supposed to be lower. In this case the company would not have been that profitable. Therefore Rhodes established the “London Diamond Syndicate” and Oppenheimer transformed it into the “CSO - Central Selling Organization”. Both companies were founded to prevent an oversupply. By buying the diamond supplies of other producers,
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FREE 30-day trial You have 30 risk-free days to decide whether you are satisfied with your order. If you are not, return the work to us in good condition and your invoice will be cancelled and any payment made refunded. Students SAVE 10%! PLACE YOUR ORDER LexisNexis, PO Box 792, Durban, 4000 0860 765 432 086 682 2830 customercare@lexisnexis.co.za www.lexisnexis.co.za PLEASE QUOTE YOUR NAME AND THE FOLLOWING REFERENCE NUMBER WHEN PLACING YOUR ORDER: RS236/13 TO ORDER FOLLOW THESE 3 EASY STEPS: 1
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De Beers, diamonds and Angola : developing an understanding of the role of sustainable development and corporate citizenship in De Beers’ exploration strategy SUNScholar Repository SUNScholar Home Faculty of Economic and Management Sciences School of Public Leadership Masters Degrees (School of Public Leadership) View ItemDe Beers, diamonds and Angola : developing an understanding of the role of sustainable development and corporate citizenship in De Beers’ exploration strategy Show full item
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Unethical Values Within De Beers Consolidated Mines Limited De Beers Consolidated Mines Limited is a South African-based mining and trading company, which controls the flow of diamonds in the United States marketplace (Aurora, 2008). De Beers distributes diamonds, ships them, and distributes them to significant intermediaries, wholesalers and retailers (Atkinson, 2000). 1. Unethical behaviour: Unfair trading and competition The first unethical conduct identified within the De Beers example is
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beginning of the DeBeers Consolidated Mines Limited in 1888 (Kretschmer). DeBeers then began to exploit the diamond mines in South Africa. While diamonds were a rare resource only a couple of centuries ago, the prices began to fall due to the discovery of the extremely rich mines in South Africa and other countries of Africa. DeBeers worked with other producers in a parallel effort, successfully set up a cartel to control international prices of diamonds (St. Antoninus Institute). DeBeers had control
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DeBeers | | 1. What functions does the CSO perform as a global intermediary? How do these functions help expand the economic pie in the diamond industry? The CSO performed the following functions before the diamond market bubble collapse in 1980: * Buffering the rough diamond supply by continuing to purchase rough diamonds of even the mines which De Beers didn’t own under contract to control the supply to the downstream market and stabilize the price. * (De Beers) Interdicting
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Unfortunately, the demand for this jewel has resulted in apartheid and blood diamonds. I will explore the creation of the diamond cartel, the catastrophic results of the industry on its mother countries, and the decline of the diamond cartel. The Rise of DeBeers Prior to the 19th century, most of the diamonds were found in Brazil and India until an abundant discovery was made in South Africa around 1867. The diamonds were so plentiful that miner’s fond them lying on the ground like stones and were easily
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Why is DeBeers anti-competitive? From 1945 to 1994, government tried several times to prosecute DeBeers for violating antitrust laws, as you can see from the slides. So from the point of government, DeBeers really is anti-competitive. Despite the fact that DeBeers retained no U.S. presence and was competitively run by South African nationals, it was still subject to the reach of U.S. law. Because in 1995 document, the justice department made its interpretation clear: “The reach of antitrust laws
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