IB817P Strategic Advantage: Maximizing Shareholder Wealth at MinCo plc

This report analyzes strategies for enhancing shareholder value in junior mining company MinCo plc. It examines the plausibility of current strategies, the suitability of commodity choices and locations, and proposes business strategies for achieving objectives. The analysis considers the challenges faced by the mining industry, including commodity price volatility and increasing regulations. It employs a deductive research approach and a descriptive research design, utilizing secondary data and a SWOT analysis framework to assess MinCo's internal and external environment. The report also explores trends in the global mining industry and emphasizes the importance of technology, health and safety measures, and resource effectiveness for competitive production.

Running head: STRATEGIC ADVANTAGE
Strategic Advantage
University Name
Student Name
Authors’ Note

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Executive Summary
The current study aims to deal with different ways of designing sustainable ways of
enhancing prices of shares in particularly junior mining corporations. In addition, this study
analyses whether it is believable for current strategies of junior mining corporation Minco to
accomplish the desired outcomes. Moving further, this study also proposes to deal with
appropriate commodity in the right nations, provided their present status. Additionally, this
research intends to appear at suitable business strategies that Min Co can assume for
accomplishment of business objectives.

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Table of Contents
Background................................................................................................................................3
Data Sources...............................................................................................................................5
Methodology..............................................................................................................................5
Data Analysis and explanation of business logic.......................................................................7
Interpretation of results............................................................................................................10
Conclusions and recommendations..........................................................................................14
References................................................................................................................................15

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Background
The objective of the study at hand is to elucidate in detail a strategy for the long term period
that can help in attainment of corporate objective of maximization of shareholders’ wealth in
junior mining company (referred to as MinCo). The current study intends to address different
ways of formulating sustainable ways of increasing prices of shares in junior mining
companies. Also, this study intends to analyse whether it is plausible for the current strategies
to attain the desired outcomes (Bettencourt et al. 2014). Moving further, this study also
intends to address whether MinCo is looking for the appropriate commodity in the right
nations, provided their current status. Furthermore, this research intends to arrive at
appropriate business strategies that Min Co can adopt for attainment of business objectives.
MinCo,that is a junior mining company belonging to the mining industry is necessarily going
through a phase of uncertainty that is necessarily being developed owing to turbulence in
commodity prices, volatility of prices, enhanced regulations, shrinking profits along with
altering global demand. This has affected the wealth creation process of shareholders of
firms operating in this industry (Sambhanthan and Good 2016). Basically, this has pushed all
the mining corporations to shift business strategies, undertake novel operating models and
look for new and advanced technologies that can help in boosting overall production
efficiency in a cost effective manner as well as safely.
During the past decade, the mining segment is said to have dramatically changed, shifting
from different conventional exercises to diverse mechanical exercises of mining. In essence,
this kind of transformation has enhanced the operating efficiency and lessened the operating
cost to certain extent (Brodie et al. 2017). However, together with the current fact, overall
mining industry is encountering more complicated threats than ever before that are market
driven or else nature driven, for example, prices of commodity as well as deeper ore bodies.

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In essence, the present requirement of the segment is to turn different challenges into genuine
business value (Goh and Kauffman 2015).
The current study attempts to comprehend what is taking place in the entire mining segment
and specific strategy that can be pursued to stick to the enhancing challenges. A swot analysis
has been undertaken on particularly trend in the mining segment. There are certain areas of
focus in the mining industry include:
Competitive Production: Effective planning is necessary along with help of advanced
technologies to enhance the process effectiveness across the mining value chain starting from
exploration to effective excavation to thereafter beneficiation and finally rehabilitation
(Rothaermel 2015).
Measures of Health and Safety: It can be hereby mentioned that development and
implementation of novel technologies in particularly health and safety operation is necessary
to guard manpower as well as machinery (Miranda and Stowe 2017)
Upgrade of Mineral along with value addition: Determining minable resources along with
mineral reserves in a cost effectual manner can also help in understanding effective and
innovative strategies (Bosko et al. 2016). Superior grade reserves are observed to be
depleting, therefore, in that case, processes need to be improved for the purpose of converting
inferior grade resources into particularly high grade ones.
Resource effectiveness and inventive culture: Development and maximisation of different
opportunities can be carried out by way of innovation or else automation (Becker 2017). This
in turn is said to augment cross functional capability of the mining industry.

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Data Sources
The current study intends to carry out a analytically evaluation of the junior mining company
by employing secondary sources of data. The secondary sources of data include prior works
of other scholars, books, articles as well as journals, industry reports, government reports,
official websites, newspapers and magazines among many others. As correctly indicated by
Sheremeta (2015), there are varied structured text (specifically, reports, outcomes of different
previously conducted surveys and prior literature among many others) that collated as
qualitative data for the research study at hand. Specific data that is utilized for the study for
the most part include theory that points out towards definite set of diverse inter-interrelated
themes, description along with propositions that can deliver systemic standpoints concerning
events otherwise situations by indicating towards associations among different variables
Methodology
A deductive research approach is undertaken for the purpose of the present study. Essentially,
this can aid in formulating hypothesis for conducting the study that has the groundwork on
subsisting premise, concepts and can help in formulation of a strategy for evaluation of the
sketched hypothesis (Haladay et al. 2015). For itself, deductive approach is adopted for
reflection of examining od premises of the study and for moving from interpretation from
specific to specifically generalization of varied notions. In addition to this, there are several
any causal relations else wise any kind of association appears to the signified by a particular
theory, and then it might possibly prove to be true in definite cases. For that reason, deductive
research approach can be considered to be a vital advance that can make examination of
connection or association easier and help in deriving diverse generic state of affairs. As a
consequence, for the purpose of the current study, deductive approach can facilitate the
process of formulation of particular hypothesis in practical way and propose links between

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diverse variables (Suwardy and Ratnatunga 2014). Subsequently, it is indispensable to
consider the outcomes of the evaluation and arrive at conclusive judgements.
For the purpose of the current study, a descriptive research design can be applied. In essence,
this specific design of conducting study essentially can facilitate the process of exploring and
elucidating while presenting important information on different matters linked to research
topic under reflection (Couper et al. 2017). The study at hand undertakes this specific
descriptive research design particularly because this utilizes secondary data together with
comprehensive evaluation of formerly acknowledged evidences that are important to a huge
extent.
For carrying out the present study, qualitative research technique can essentially be used for
initiating the procedure of investigation into definite reasons behind specific behaviour (that
might be ethical otherwise unethical) of individuals (Delery and Roumpi 2017). This study
carries out extensive evaluation of prior case studies, procedures of thematic evaluation along
with systematic measurement of past academic literature for scrutiny of the amassed
qualitative data.
Data Analysis and explanation of business logic
Analysis of data and illustration of business logic is carried out by scrutiny of prior literature
presented earlier by scholars linked to current subject matter under deliberation.
Systematic review of prior literature: In this case, a desktop based research study has been
undertaken for the purpose of analysing pertinent literature that comprises of recent reports,
books as well as articles accessible in public domain. As rightly suggested by Leiblein et al.
(2017),competitiveness of any kind of economic segment can necessarily be benefited by
way of developing novel and advanced technologies together with automated customs of

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operating. With no exception this mining segment is also reliant on technology and
unquestionably can be benefited by various developments in technology. As indicated by
Galliers and Leidner (2014) Strategy of Mining can be described as the association between
business of mining and its present as well as prospective business facets (Li and Liu 2014). In
essence, it also ascertains the long run aims as well as objectives of particularly the mining
segment and specific courses of along with suitable ways of management of resource for
carrying the distinct objectives. Basically, there are varied strategy levels implied and are
hereby shown in figure 1 below.
As suggested by Radomska (2015), corporate strategy illustrates overall scope of junior
mining business and the specific market in which the business operates. Corporate strategies
in this regard first and foremost takes account of exploration of options of novel
acquirements, specific vertical integration along with allocation of varied resources between
different units of business. As suggested by business strategy elucidates that the firm
competes particular within the mining segment or market and for the most part concentrates
on competitive advantage over competitors (Frølich et al. 2014). In addition to this, this study
talks about efficient strategy that essentially concentrates on management of resources at
mainly the operational level.
As rightly indicated by Bettencourt et al. (2014), the mining strategy validates that concerted
technology improvement shall play a vital role for novel innovations and enhances the

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competitiveness of the entire mining sector. Different components engaged in the successful
strategy scheme are effectual execution, long term possibility, uncomplicated and agreed
upon aims, insightful understanding of overall competitive environment as well as resource
allocation. Essentially, a scrutiny of internal along with external evaluation of a corporation
or else an industry is a significant part of strategic planning procedure. In this connection, it
can be hereby presented through a SWOT Analysis framework that is a vital and functional
tool to be used in Strategic planning (Sambhanthan and Good 2016).
As per prior literature it can be said that optimal use of mineral resources can be attained by
reworking as well as executing novel technologies by means of best mining exercises,
thorough geoscientific research as well as development, investigation along with
sustainability. In essence, these might consist of techno economic plus geoscientific
improvement in the mining segment, reinforcing the method for regulating mining as well as
limiting unlawful mining projects, enhancing the implementing of government along with
private mining establishments, effectual management and enhancing performance, inspiring
novel technologies (Brodie et al. 2017). This also involves efficient research and
development schemes, maintaining associations and partnership with prosperous mining field
nations across the entire globe, expanding mineral survey as well as exploration sectors by
categorising of exceptional economic zones, distinct window power for mine lease
substantiation, management of human resource and building of capacity.
Prior studies help in understanding trends in global mining industry. Trends in worldwide
mining industry reflect the fact that in the current years different trends have stemmed in the
mining sector (Goh and Kauffman 2015). This involves enhancing demand with regard to
supply along with increasing the mining cost, expansion of different exploration actions
throughout the entire globe, assuming progressive strategy measures to improve varied
mining actions in their nations.

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Analysis of these trends in the mining industry is establishing the manner of production and
at the same time generating exclusive challenges. Again, in certain aspects and for potential
stance, it is important for industry growth. Increasing challenges carry opportunities as a
well-toned scheme is necessary to satisfy and deduce increasing challenges (Rothaermel
2015).
Bosko et al. (2016) suggests that effectual mining strategic judgements deliver the suitable
operational activities for mining segment at the appropriate time. Essentially, mining segment
nowadays handle unparalleled challenges, varied opportunities as well as threats. In this
regard, it can be said that aim of SWOT analysis is to draw attention to important strengths,
weaknesses, opportunities as well as threats for the entire segment by evaluating publicly
accessible information. In essence, the SWOT evaluation shall decode conclusions into
tactical acts so that mining sectors can implement opportunities and guard against different
threats (Becker 2017).
As correctly mentioned by Sheremeta (2015), the methodology of analysing internal as well
as external facets can be considered to be most significant for mining segment for upcoming
period. This can help in understanding different strategic factors that again can be grouped
under strengths, weaknesses, opportunities, along with threats

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Interpretation of results
Strength: Analysis of prior works and research studies has helped in identifying
effectiveness of the present strategies of mining firm and aids in understanding their
strengths. As rightly put forward by Haladay et al. (2015), junior mining industry is observed
to have superior values and is said to be bestowed with considerable mineral resources that
are available on the globe. Based on this observation it can be said that Minco is also said to
have huge amount of mineral resources. Therefore, it is not imperative that every nation
possesses abundant resources. However, every nation does have abundant resources but every
nation plays an important role in the process of production as well as manufacturing
resources by consuming in certain ways. However, an instance presented can help in
explaining the factor. Australia plays an imperative role in the procedure of production of
minerals at a worldwide scale. The nations that are essentially rich in certain kinds of mineral
resources do not essentially make exploit all of their resources possessed by them alone.
Conversely, nations can often be seen to export varied resource that they possess in
abundance and import the ones that they need. Suwardy and Ratnatunga (2014) suggest that
there exists a gap between operational sites as well as software technologies. As per Couper
et al. (2017), this identified can be bridged by way of assimilated processes of planning along
with optimization. Several advanced nations are also following this same procedure of
operation. There are global procedures across the entire industry that can help in deriving
clear path for upcoming growth. Therefore, management of Minco can also adopt the same
strategy for attainment of upcoming growth.
Again, skilled professionals such as geoscientists and several mining engineers among many
others with cross functional competency are present in the specific market and can be entirely
used. Management of Minco can also make use of skilled professionals that are present in the
market for development of the operations of the firm (Delery and Roumpi 2017). Again,

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commercial mining investments as well as assimilating sustainability can be regarded as
leading trends from worldwide mining corporations. Undertaking opportunities and at the
same time maximizing various positive influences in various operational sites and
assimilating sustainability principles can enhance the procedures to pursue growth and add
values to the overall mining industry (Leiblein et al. 2017). Based on this observation, it can
be said that undertaking this strategy can direct the way towards operational and functional
efficiency along with savings of costs.
Weaknesses: As correctly mentioned by Galliers and Leidner (2014), inadequate
management of risk owing to different internal as well as external facets in different mining
industries such as unplanned incidents at different mining sites can lead the way towards
grave production loss. This might direct the way towards cause injuries or else even prove to
be fatal to employees. Essentially, this can delay different projects for period of long run or
else even can direct the way towards absolute closure. Insufficient procedures and
management of quality owing to resource constraints, constraints of schedule can lead to
delay in supply of material supply and damage operations considerably (Li and Liu 2014).
Inefficient communication as well as management of stakeholder might stem owing to too
late else wise too early communication with firm’s stakeholders, incorrect stakeholders in the
specific project or every now and then the management shall not deliver for the involvement
of stakeholders. In essence, this might possibly hamper overall transparency along with
honesty in the stakeholder associations (Radomska 2015). Therefore, based on this
observation, it can be said that management of the firm MinCo can concentrate on
development of processes of communication with their stakeholders for development of
operations. Essentially, innovative processes of communication can be developed in this
regard that can subsequently direct the way towards development of operations.