GVM Exploration Limited Case Study

This presentation provides a case study of GVM Exploration Limited, a junior mining company based in Toronto. It examines the company's current situation and offers recommendations to overcome existing barriers. The presentation also highlights the importance of corporate social responsibility and sustainability in business progress. Access study material and solutions on Desklib for further insights.

GVM Exploration Limited
Case Study Summery and
Solution
Name of the Student

 The strategic business management is core part of any
organisational approach, which includes the analysis of
current situation as well as finding out the strategy to
mitigate the crisis while making some innovative
improvement plan.
 Corporate social responsibility and sustainability are some
of the major contributors in business progress.
 The purpose of this paper is to critically examine the case
study of Gvm Exploration Limited in order to provide
recommendations to overcome their existing barriers.
Introduction

 Based in Toronto, Ontario, GVM Exploration was a junior
mining company listed on the Toronto Stock Exchange with
interests in seven mineral deposits and a number of
exploration projects in Canada.
 GVM Exploration's principal assets were the “world class”
Grizzly Valley anthracite coal deposits in southeast British
Columbia, and the Dovik Creek gold-cobalt-bismuth deposit
in northern Quebec.
Company details

 On Saturday June 25, a group of Elders, and First Nations’
families blockaded the entrance to the road which
connected the Grizzly Valley site and the rail roadbed and
eventually led to the main highway.
 The protesters claimed that GVM’s project infringed upon
Aboriginal Title and Rights when the company was granted
tenure without honorable consultation with the family on
whose traditional territory the tenure was located.
Problem statement

 Success of new product mix
 Wide geographic presence
 Talent management
 Brands catering to different customers segments within Ethics, Growth
strategy, Social responsibility, Strategic planning, Sustainability
segment
 Diverse Revenue models
 Market Leadership Position
Strengths

 Low investments into Gvm Grizzly's customer oriented services
 Declining market share
 Business Model of Gvm Grizzly
 Niche markets and local monopolies
 Declining per unit revenue for Gvm Grizzly
 Extra cost of building new supply chain and logistics network
Weaknesses

 Increasing customer base in lower segments
 Trend of customers migrating to higher end products
 Local Collaboration
 Customer preferences are fast changing
 Rapid Expansion of Economy
 Lower inflation rate
Opportunities

 Changing political environment
 Saturation in urban market and stagnation in the rural
markets
 Commoditization of the product segment
 Distrust of institutions
 Competitive pressures
 Competitors catching up with the product development
Threats

Financial Analysis
2003 2004
Current assets $4,762,986 $25,376,140
ASSETS (A) $17,663,062 $40,450,651
Total current liabilities $174,857 $759,640
Total liabilities (L) $2,834,857 $4,749,640
SHAREHOLDERS’ EQUITY (E) $14,828,205 $35,691,011
Debt ratio (DR) (L/A) 0.160 0.117
Debt to Equity Ratio (DER) (L/E) 0.191 0.133

Stratagy
Opportunities Threats
Strengths Strength Opportunities (SO) Strategies
Increasing investment in CSR activities
Strength Threats (ST) Strategies
Reducing waste to increase the sustainability of the
business
Weaknesses Weakness Opportunities (WO) Strategies
Investing into locality oriented services and
cultural asocial as well as local workforce
recruitment
Weaknesses Threats (WT) Strategies
Forming information integrity with the locality while
maintain a cohesive communication

Recommendations
 Increasing investment in CSR activities
 Reducing waste to increase the sustainability of the
business
 Investing into locality oriented services and cultural asocial
as well as local workforce recruitment
 Forming information integrity with the locality while
maintain a cohesive communication

 Bodruzic, D., 2015. Promoting international development through
corporate social responsibility: the Canadian government's
partnership with Canadian mining companies. Canadian Foreign
Policy Journal, 21(2), pp.129-145.
 Dashwood, H.S., 2014. Sustainable development and industry self-
regulation: developments in the global mining sector. Business &
Society, 53(4), pp.551-582.
 Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and
Villanueva, P., 2014. Project risk management methodology for
small firms. International journal of project management, 32(2),
pp.327-340.
 Thorne, L., S. Mahoney, L. and Manetti, G., 2014. Motivations for
issuing standalone CSR reports: A survey of Canadian
firms. Accounting, Auditing & Accountability Journal, 27(4),
pp.686-714.
References