De Beers Diamond Company
Rhonda L. Evans
BUS 475 – Business and Society
Professor Mehdi Nazer
November 5, 2014
De Beers Diamond Company 2
De Beers started its search for the most exquisite and magnificent diamond over 126 years ago. In 1888 Cecil Rhodes a British businessman founded the De Beers Diamond Company, the De Beers companies is a cartel of companies that dominate the diamond, as well as the diamond mining, diamond trading including industrial, diamond shops, diamond manufacturing sectors.
The De Beers Diamond Company is worldwide with stores in Tokyo, Japan, London, and New York, introducing the ‘4C’s of the diamond (diamond color, diamond clarity, diamond cut, diamond carat weight), they also introduced the slogan ‘A Diamond is Forever’. De Beers current activities include all areas of the industrial diamond mining including: open pit, large-scale alluvial, deep sea, and underground. De Beers mines in Botswana, Namibia, South Africa, and Canada. De Beers diamond chain includes the following companies: De Beers Canada – mining, De Beers Consolidated Mines – mining,
De Beers Diamond Jewelers – retail, Debswana – mining, Diamdel – trading, Diamond Trading Company – trading, Diamond Trading Company Botswana – trading, Diamond Trading South Africa – trading, Element Six – Advanced Materials/ industrial diamonds, Forevermark – retail, Nemdeb – trading, and Namibia Diamond Trading Company – trading.
De Beers on November 4, 2011 Anglo American plc and CHL Holding made an agreement that Anglo American would acquire an cumulative interest in De Beers enlarging Angle American’s current 45% shareholding in the world’s leading diamond company up to 85% De Beers Societe’ Anonyme (DBSA) is the secretly held ownership company of De Beers Investment they are
De Beers Diamond Company 3 registered in Luxembourg. Having only two shareholders Anglo American plc at 85% and The Government of the Republic of Botswana owns 15% directly. De Beers service is diamond mining, diamond trading and retail.
Competition can be considered as external environment factor that can affect the De Beers success. As it stands now De Beers Diamonds has a monopoly on the diamond world, so competition from anywhere could possibly change their success. A company coming in offering betters prices, more exquisite designs in diamonds; with more quality service these efforts would affect De Beers’s success.
Environmental factors are a second way De Beers success can be affected when the soci-economic decided because De Beers does have an monopoly on the diamond market that they don’t have to consider attitudes or concerns of their customers and just produced a product that their customers would not be able to afford thus causing them to lose profit therefore affecting the success of the business.
One salient stakeholder is the employees who are internal stakeholders of the firm in the sense that they contribute to the business in their efforts and skills at the worksite. Employees can refuse to work under certain conditions thus going out on strike or slow down. Employees with unions will have more power than those who try to negotiate for themselves.
Second salient stakeholder is the suppliers who is an external stakeholders of the firm in the sense that they have economic power suppliers can withhold supplies or refuse to fill an order if a company fails to meet its contractual responsibilities.
De Beers Diamond Company 4
The third and last salient stakeholder is the stockholder which is an external…