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African Minerals Case Study

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Strategic Direction of the African minerals Limited
A company's strategy is management's action plan for running the business and conducting operations.
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". It now refers to a plan of action designed to achieve a particular goal. The African Minerals is concerned with how different engagements are linked. They are concerned with a certain course of action to meet designed goals and objectives, generally supposed to remain unchanged for a fairly long time period as the change in strategy …show more content…
Unlike many of the world’s iron ore producing countries, Sierra Leone has a relative shortage of skilled labor, and numerous infrastructure constraints relating to the supply of goods and services as well as an unsophisticated framework of industrial relations.
The scale of the development by the Company is not reflected elsewhere in the region (with the exception of a small number of projects in Liberia), which has led to significant human migration toward AML’s operations. High unemployment, very limited provision of public services, essential utilities and healthcare creates challenges and opportunities for community governance and for managing the expectations of the population. This is further constrained by limited formal communication networks. Additionally, the heavy rainfall that Sierra Leone experiences during its rainy season (from May to November) creates a challenge for the successful construction and operation of the mine and its supporting infrastructure.
 Competitive …show more content…
Global iron ore supply has historically been dominated by the “Big 4” iron ore producers: Vale, BHP Billiton, Rio Tinto and Anglo American, who have in turn acted as price-setters for the rest of the industry. In recent years, the emergence of Fortescue Metals has challenged their dominance; however, the sector remains dominated by a few key players. In addition to competing globally with the “Big 4” and Fortescue, African Minerals also faces competition from other large African iron ore producers such as ArcelorMittal and Kumba. Due to the concentrated nature of the iron ore industry, African Minerals’ competitive position may also be negatively affected by the ability of its competitors effectively to act as price setters for the rest of the sector, resulting in AML operating as a price-taker. Additionally, some of African Minerals’ competitors will have advantages over the Company in terms of geographic location in relation to customers and other large international iron ore companies may have greater financial resources and more extensive global operations than

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