Corporate Strategy for Anglo American plc

This report discusses the corporate strategy of Anglo American plc, a British multinational mining company. It includes an analysis of the business environment, opportunities, internal analysis, and strategy evaluation. The report concludes with a discussion of the resources and key competencies of the organization, and a strategy of SAFe that develops understanding and knowledge effectively.

Corporate Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Discuss the business environment and identify a number of Opportunities ...............................1
TASK 2............................................................................................................................................4
Internal Analysis .........................................................................................................................4
TASK 3............................................................................................................................................7
Strategy Evaluation .....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Books and Journal......................................................................................................................10

INTRODUCTION
Strategy is the kind of plans and structure which is formulated for the purpose of
developing the business and increasing performance. If an organization is having effective plans
and strategy then it will be opportunity to grow the business and accomplish the business goals.
A plan of action which is designed to achieve a long term or overall aims. This is important for
each organization to have right policies and strategy as it could help to managing the all
functions and activities. Corporate strategy is a unique plan or framework that is long term in
nature, designed with an objective to gain competitive advantages over other market participants
(Menz, and et.al., 2021). To understand about strategy of organization Anglo American plc has
been taken that is British multinational mining company with headquarter in London, England.
This is the world's largest producer of platinum, with around 40% of world output, as well as
being a major producer of copper, diamond, nickel, metallurgical and thermal coal. The
management of such organization make the use of different corporate strategies which can help
to increase the business performance. The report concludes external analysis, resources and key
competencies of the organization, and a strategy of SAFe that develop understanding and
knowledge effectively.
TASK 1
Discuss the business environment and identify a number of Opportunities
An environment analysis consider trends and involvement of high-level factors, like as
interest rates, and states how they might change a company's business. This is important for each
organization to understand the environment to know what is happening around and how their
customers will be influenced to work effectively. The aim of industry analysis is to identify the
potential influence of particular aspects that can help to operating the business regularly. Anglo
American is larger size mining company that offers different types of products and services at
the workplace by analysing the environment of England. This can help to develop the
understanding regarding specific topic and supports to increase the performance. It has been seen
that number of issues which are pertaining into business environment as it affects the
performance that are explained below:
Political Issue – This can be term to government regulations, and political stability in a
country or state as it formulates the different types of rules which needs to be follow in managing

the functions. As Brexit occurred between UK and Europe that has created the issues for country
to discontinue their business activities and other functions in opposite country. Thus, it was an
threat for business industries to regulate their business in existing marketplace which needs to be
improve by formulation of different strategy and regulations (Foucault, and Frésard, 2019).
Economic issues – This factor relates to money and economical aspects that involves
inflation rates, interest rates, employment rates, monetary policies, and consumer confidence. As
pandemic occurred in whole world where most of the businesses have been closed as per
government regulations that created the issues for UK market to operate the business effectively.
Due to lockdown and closing mining industry business environment has been affected negatively
as it reduced the employment rates which reduced the buying power of customers and reduces
performance.
Social Issues – This factor relates to social aspects by considering income distribution,
demographic influence, changing in customer taste that have created the business negatively. In
UK, needs and wants of people in going to change and also having low income distribution that
have created the challenge for business industry to influence the customers towards
organizational products and services. Thus, mining industry of England have analysed the lower
sales and productivity due to arising social issues (Cardoni, Kiseleva, and Lombardi, 2020.
Environmental issues – This means changing in environment and marketplace that
directly affect the business industry negatively and created issues in operation. The factors of
environment consider regulations, restrictions, and attitudes of customers which needs to be
follow while running the industry. It has been found that number of manufacturing and mining
industries arising in England or UK which are creating the pollution and harm to environment
that affected the business industries negatively.
Innovation issues – This is kind of technological factors which could affect the business
environment and industry negatively. This is important for each individual to analysis the
environment and comes to know what issues are arising. In UK, use of new technology and
innovation is also considered as major issues as it consume cost, time, and money which might
be fail. This could be threat for industries to regulate business ( Li, Cui, and Zheng, 2021).
Supply chain issues – In UK market there is uncertainty in demand which needs to stay
lean, industries are carrying inventories. Due to changing commodity prices, weather related

disruption, and increasing competition for raw material makes supply challenging as threat in
UK market or environment.
From the above mentioned issues it could be explained as threat for industry and business
environment which creates the challenges in operation and reduce the performance. To convert
into threat it needs to follow the regulations and managing changes properly by arranging all
activities at the workplace that can help to develop performance.
Porter's Five force – This could be explained as model which is used to analysing the
industry in changing situation for the purpose of highlighting opportunities and threats. This can
help to manage the all functions and activities effectively. The use of five forces in relation to
mining industry UK is defined below:
Bargaining power of buyers – This means buyers holds negotiating powers in case of
having alternative products in the market. In case of mining industry such as diamond, platinum,
and Coal in UK market bargaining power of buyers is low as there is less number of sellers who
sales better quality of products. Thus, it could be opportunity for mining industry to operate the
business by influencing number of customers (Zhu, and Westphal, 2021).
Bargaining power of Suppliers – This states negotiating power of suppliers to deal with
employers as it affects business. The mining industry need technical support from suppliers on-
site for routine check-ups and maintenance. It needs a supplier for up gradation of equipment
after purchasing the mining companies that affect the business. Thus, bargaining power of
suppliers is high in relation to mining industry that can charge higher amounts from the
organization recognised as threat.
Threats of new entrants – This could be explained as important force which explains
new entrance and comers in marketplace. The mining industry is having very high threat to new
entrance as it requires higher investment, capital, resources and follow the framework set up by
the regulators. Thus, it could be opportunity for Amglo American to run their business because
to entrance of new mining industry is hard that increases sales (Mukhezakule, and Tefera, 2019.).
Rivalry among existing players – It has been analysed that mining industry is very
competitive due to limited mining companies and limited resources in UK. The main competitors
of Anglo American is Rio Tinto Group, Newmont mining, Anglo Gold Ashanti. There is
moderate threat for chosen industry that can be converted into opportunity by using innovation,
and new technology in designing the products that would help to attract and influence the

number of customers in changing environment. This can help to increase the organizational sale
and productivity effectively (Dahl, and Fløttum, 2019).
Threats of substitution – This means an industry faces threat of substitution if there are
alternative products available in the market. The threat in mining industry is high as it relates to
use of technology and voice to curb while production of coal and uranium. The mining industries
can convert into opportunities by investing into renewable energy resources like solar and wind
energy. This can help to increase the organizational performance and productivity by managing
all functions and activities effectively (Akmaeva, Arykbaev, Epifanova, and Glinchevskiy,
2020).
From the discussed forces it could be explained that there are some major threat for
mining industry such as bargaining power of suppliers, substitution, and rivals which can be
convert into opportunity by using new technology and designing better quality of products which
creates difference from others easily. This can help to increase the industry performance and
productivity effectively.
TASK 2
Internal Analysis
This means to focus on internal environment of organization such as employees, financial
resources, capabilities, and core competence that are followed to regulate the business. Anglo
American is the larger size, mining industry that offers copper, diamonds, thermal coal,
metallurgic coal, and many more.
VRIO Analysis -
Resources Valuable Rare Inimitable Organised
Designing of products Yes - - -
Technology Yes Yes - -
Market presence Yes Yes Yes -
Financial Resources Yes Yes Yes Yes

Valuable – This means how physical products and services are valuable to organization.
Anglo American is the wide range of mining organization that have effective resources such as
product designing, technology, market presence, and financial resources which all are valuable to
organization as product design attracts customers and create difference from others, technology
is used to innovate something new, market presence is valuable to reach larger customer base,
and financial resources are used to managing all functions and activities effectively (Juevesa,
Juevesa, and Juevesa Jr, 2020).
Rare – This means sources and activities which are rarely available or costly to attain. In
context to Anglo American, technology is considered as rare resources as it is costly to attain for
mining industry. This is point of strength which is creating competitive advantages for chosen
mining industry as it reaches to potential customers (Niemi, and et.al., 2020).
Inimitable – This means resources and functions which are available in an organization
are difficult to imitate that could help business organization to regulate their business and
matntain the higher performance. In context to Anglo American organization, market presence is
considered is inimitable resources as to enter in to new market and creating global presence for a
mining industry is very hard. Thus, its is strengthening aspects for business organization which is
used to develop the organizational sales and productivity at the workplace. This can help to
increase the customer base by influencing number of people via online sources.
Organised – This has been stated as core competence and capability of resources which
are important to follow and supports to develop the organizational productivity. This is important
for each organization to arrange and organise their all resources in well manner that can help to
increase productivity. In relation to Anglo American, financial resource is considered as core
competence resources as it is used to buy raw material, distributing salary, managing and
controlling the manufacturing process that can help to influence the number of people and
increase productivity. This can help to maintain higher performance and productivity at the
workplace resulting a great strength (Grant, 2021).
Value Chain Analysis – This could be an analysis of evaluation of each activities in an
organization that can be use to improve the activities and functions effectively. This involves
primary and supporting activities that can help to increase the organizational performance. The
Value chain analysis of Anglo American is defined below:

Primary Activities
 Inbound Logistics – This involves internal activities of organization which is used to
develop the business functions. In relation to Anglo American, activities are associated
with receiving, storing, data collecting, and disseminating the inputs of the products. The
management mainly focuses on handling, warehousing, and storing customer information
that source as inbound logistic and helps to increase business advantages (Ritz, 2020).
 Operations – Activities which is used by organization to transform raw material into
finished products is known as operation. In context to Anglo American, design of new
products by using copper, stone, diamond and other material is involved in operational
activities.
 Outbound logistics – This is used to preparing report of outsourcing activities which can
help to develop the organizational performance. The outbound logistics of Anglo
American in mining industry are warehousing, distribution network, scheduling and order
processing that could help to influence the number of people and provide competitive
advantages (Ariwibowo, Saputro, and Haryanto, 2021).
 Marketing and sales – This is important function which use by organization to promote
and sale their products as well as services. The marketing and selling activities within
Anglo American are sales force management, channel selection, promotion and selling of
products that can help to increase the organizational productivity and provide competitive
advantages.
 Services – Some services are provided by organization to their customers that could
influence the number of people and gets work done. In relation to Anglo American
industry, after sale services are providing by management for the purpose of maintaining
a successful business. The core competent services are training, installation services,
using software and others that gives competitive benefits.
Supporting Activities
 Firm Infrastructure – This indicates the infrastructure of an organization by considering
all activities that could be focused to increase sales. In context to Anglo American,
quality management, legal services, planning, general management, finance and
accounting are supportive activities which are managed at corporate level and provide the
higher benefits. This can help to increase the organizational performance.

 Human resource management – HRM is the key to organization success as it involves
recruitment, selection, skills assessment, people training & development, compensation,
and others that is performing in Anglo American organization, helps to increase business
performance and productivity effectively (Vargas-Hernández, and Garcia, 2019).
 Technology development – This mainly focuses on innovation and use of new
technology that can help to develop business performance. In Anglo American, feature
design, process engineering, field -testing, and component design and technology
selection is used by organization that can help to develop the business competitive
advantages.
 Procurement activities – This involves activities which are undertaken to purchase
inputs and managing the all functions effectively. In relation to Anglo American,
procurement activities are raw material, supplies, machinery, office equipment, and
buildings that can help to attain the competitive advantages.
TASK 3
Strategy Evaluation
This could be explained as planning which is used by organization for the purpose of
evaluating the strategies and attaining higher performance. In above section Anglo American has
been used the different strategies to analysis environment, industry, and competitive advantages
which are evaluated the SAFe test explained below:
Suitability - The TOWS analysis of Anglo American organization considering SO
quadrants that involves managing the all functions and activities of business industry. This is
suitable for business organization as it bring the innovation and new technology which can help
to influence the number of people and get work done effectively. The strength for organization is
to appropriateness of business strategy which are followed to identifying competitors and
formulates strategy which can provide higher benefits (.Alexandru-Ilie, Alexandru, Iulian, and
Valentin, 2020).
Acceptability – This means how easily an organization gets ready to accept the changes
and challenges at the workplace which can help to develop the business productivity and
profitability. Anglo American is the mining industry that understand the changing demand of
customers and offer the kind of products which support to develop organizational performance.

The main stakeholders of Anglo American organization are employees, customers, government,
shareholders, and suppliers that all are important and contribute to increase the organizational
function and activities effectively. The stakeholder analysis is constructed below:
Interest Power
Government
(High)
Customers
(Low)
Suppliers
(Low)
Employees
(High)
 High power, High interest – In context to Anglo American organization, Government is
playing major role as it formulate regulations and allow company to regulate their
business effectively. Government is having high power, and high interest as it support to
apply all regulations and contribute to develop the organizational functions as well as
activities (Fernandez-Stark, and Gereffi, 2019).
 High power, low interest – This consider stakeholder who have high power, but low
interest in business organization. In relation to Anglo American, suppliers is having high
power and lower interest as it understand organizational demand and offer the kind of
products with the aim of getting money. The company has low interest in business
activities.
 Low power, high interest – In relation to Anglo American, employees are valuable
assets in business organization as it supports to attain common goals. The employees
have low power to make decision and give opinion to run business but having interest to
get higher returns.
 Low power, low interest – This matrix shows low power and low interest that are
followed to regulate business. In relation to Anglo American, customers belong to this
category as they have low power to make decision and lower interest in business
activities that might be affect business negatively.
Feasibility – This means activities which us operating in business organization are
feasible or not as it directly affects the business industry. Anglo American is larger mining
industry that make the use of financial resources in buying raw material, managing resources,

and employees that all are valuable to organization and supports to develop the business
industry. This can help to provide the competitive advantages by managing all functions and
activities effectively. Thus, all resources and strategies are feasible to business industry.
CONCLUSION
From the report it can be concluded that corporate strategies are followed by business
organization for the purpose of managing all functions as well as activities. Difefrent issues are
faced by business industry that needs to be resolve by applying effective plans and strategies.
VRIO analysis states the resources of an organization that creates the competitive advantages
efficiently.

REFERENCES
Books and Journal
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INTERACTION BETWEEN VRIO FRAMEWORK AND McKINSEY 7S
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R., Arykbaev, R., Epifanova, N. and Glinchevskiy, E., 2020Juevesa, R.D., Juevesa, C.V.
and Juevesa Jr, R.D., 2020Grant, R.M., 2021. Ritz, R., 2020Ariwibowo, P., Saputro,
F.B. and Haryanto, H., 2021Vargas-Hernández, J.G. and Garcia, F.C., 2019.Alexandru-
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Gereffi, G., 2019.Niemi, J., and et.al., 2020.