May 1, 2014
The De Beers Company is one of the wealthiest companies in the world. De Beers leads and dominates the diamond industry in diamond mining, diamond trading, and industrial diamond manufacturing. In 1871 a South African man named Cecil Rhodes created De Beers. Rhodes rented water pumps to miners then invested his profits by buying up small mining operations. In 2011 the De Beers Group sold their remaining stake to Anglo American for $5.1 billion in cash. (DeMarco, 2011). Before the sale the diamond company was owned by the Oppenheimer family. Now Anglo American own 85 percent of De Beers making them the primary …show more content…
In the diamond industry, companies have had a lot of control over the amount of diamonds out on the market for sale. This has given diamond companies some control over the supply and demand factor of diamonds. However, the stakeholders have lots of influence on the success of a diamond company. Stakeholders associated with diamond companies have the ability to: change laws and regulations; influence better working conditions and demand; and change operations and worker pay. All of these factors will influence the financial performance of an organization such as De Beers.
The governments have control over what laws and regulations diamond companies go by when operating in their jurisdiction. This could have an effect on a company financially. For example, in some