Strategic Capstone: Analysis of Northern Star Resources Limited

Strategic Capstone
Northern Star Resources Limited
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Strategic Capstone 1
Executive summary
Strategic management involves the formulation and implementation of the important goals and
initiatives that are taken by the top level management on the behalf of the owners of the
company. In the current era, this is the fact that every company need to analyse the strategies that
are incorporated by the companies. The company on which the analysis has been done in
Northern Star Resources Limited. The findings of the report show that there are different issues
which are faced by the company such as technological risk, political risk, environmental risk and
many other factors. These factors influence the working of the company and also made them
bring the changes within the working of an organisation. Along with this, the analysis related to
the organisational internal working has been done which reflects the strategic issues that are
required to be removed. The recommendations for the same has been discussed which will help
in improving the performance of the company.

Strategic Capstone 2
Contents
Introduction......................................................................................................................................4
Overview of company..................................................................................................................4
Strategic issues faced by company..................................................................................................5
Issues related to the performance................................................................................................5
Issues related to the prices...........................................................................................................5
Assessment of organisational context..............................................................................................6
Environmental analysis................................................................................................................6
PESTLE Analysis....................................................................................................................6
Industry environment...................................................................................................................9
Porter’s five forces...................................................................................................................9
SWOT analysis......................................................................................................................10
Analysis of strategic issues............................................................................................................12
Strategy......................................................................................................................................12
Performance...............................................................................................................................12
Value chain analysis..................................................................................................................12
Primary activities...................................................................................................................13
Support activities...................................................................................................................14
VRIO analysis............................................................................................................................15
Recommendations..........................................................................................................................17

Strategic Capstone 3
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

Strategic Capstone 4
Introduction
The aim of the academic report is to present the recommendation or consultant to the company
after analysing the organisation issues. The organisation that has been selected for this report is
Northern Star Resources Limited. The strategic management theory applied to the company is
done to identify and analyse the strategic issues faced by the company. Along with this, the
organisational strengths and limitations are assessed which will help the company in improving
the working or operations of the business. The analysis related to the organisational context is
done with the help of the PESTLE, SWOT and five forces model. In addition, the analysis of the
strategic issues which is faced by the company is done with the help of the value chain and
VRIO analysis which shows the operations and competitive advantage of the company. These
two models show the working of the Northern Star Resources Limited. In the end, some of the
suggestions are given to the company which helps them in improving the operations.
Overview of company
Northern Star Resources Limited is a global scale ASX 100 gold producer with the world-class
projects that are located in highly prospective and low sovereign risk regions of Western
Australia and the Northern Territory. The company is considered the third largest Australian gold
producer and the company produces approx. 514,735 ounces of gold in the year 2017 from its
West Australian operating business units. The core values of the company are STARR which
stands for safety, teamwork, accountability, respect and results (Northern Star resources limited,
2018).

Strategic Capstone 5
Vision: - The vision of the company is to continue building a safe, quality mining and
exploration company that mainly focuses on creating the value for the stakeholders (Northern
Star resources limited, 2018).
Mission: - The mission of the company is to form the earning accretive value for the
stakeholders through the effectiveness of operational, growth opportunities and the exploration
with a prime focus on the success to deliver on the targets.
Strategic issues faced by the company
The company face the numerous issues whole managing the operations and these issues vary
according to the activities, processes and working of the company.
Issues related to the performance
 Achievement of the performance hurdles at the end of the three years
 Employment within the company continuously
 Personal performance reviews are not satisfactory in the three years
Issues related to the prices
The company found the issues related to the market prices as there is an opportunity that the
market prices of the gold and silver that are currently produced might take place. These issues
can affect the profit and loss of the company.
The details related to the strategic issues faced by the company are discussed further with the
help of the organisational analysis.