BHP Billiton: Mining Potash

Author(s):  
Thomas N. Hubbard ◽  
Michael J. Moore

BHP, an Australian mining company, threatens to enter the potash mining industry through a hostile takeover of the Potash Corporation of Saskatchewan. Complicating matters is the fact that the Canadian potash industry has operated as a legal cartel in which the provincial government has a stake. This case enables students to assess BHP's strategy in terms of value creation and value capture, how it relates to its existing investments in the industry, and the risks and rewards of alternatives to BHP's strategy-How cartels help firms capture value in an industry and how the threat of entry can limit the cartel members' ability to do so -How firms outside a cartel can capture value though a competitive threat -The range of strategies available to incumbents and

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brenton Lawson ◽  
Larissa Statsenko ◽  
Morteza Shokri-Ghasabeh

Purpose Adopting a qualitative research design and following a single case study research methodology 21 semi-structured interviews with asset integrity project managers (PM), project sponsors (PS) and members of the project management office (PMO) were conducted. These were complemented with company’s project management framework documents and tools and direct observation by the researcher’s observation. Design/methodology/approach The data on the value creation in the mining asset integrity and improvement project portfolio was collected through 21 interviews with PM, PS and members of the PMO and complemented by observational data and the analysis of the Australian mining company process documentation. Findings The study finds that establishing a culture of delivering value supported by functional governance is critical for effective value creation practice in asset integrity and improvement project portfolios. In addition, early engagement of the key stakeholders with clearly defined roles and utilisation of project value management artifacts, enables effective value delivery throughout the project lifecycle. Originality/value The research offers an empirically grounded framework to facilitate value creation throughout the project lifecycle in asset integrity and improvement project portfolios drawing on a benchmarking case of an Australian mining company.


2007 ◽  
Vol 12 (22) ◽  
pp. 147-178
Author(s):  
Alfredo Mendiola ◽  

Bailey Investments Inc. (BII) was restructuring their investment portfolio and examining the possibility of extending their exposure towards the Peruvian mining industry. Specifi cally, they were interested in investing in the Milpo Mining Company, about which they had very good references. For this reason, they asked MC Peru, who is one of their primary foreign customers, to create a report about the convenience for realizing this investment. They expected a comparison between the market price and the value of ordinary Milpo stock. Analyst Ernesto Valdez, who was in charge of this work, knew that he would only have a short time (three days) to do so, meaning that there would not be any time to converse with Milpo representatives, and his analysis would have to focus on public information available through the Internet.


Africa ◽  
2017 ◽  
Vol 87 (4) ◽  
pp. 780-805 ◽  
Author(s):  
Timothy Makori

AbstractThe Copperbelt of Congo was once the bastion of industrial development and no individual embodied its modernity as fully as the salaried industrial miner. Today, with the near collapse of the state-run mining company, Gécamines, and the liberalization of the mining industry starting in 2002, the majority of miners are no longer trained and salaried industrial workers but rather children and youth eking out a precarious living as artisanal miners orcreuseurs. In Congo, artisanal mining is paradoxical, for, although it indexes a future of unskilled, untrained, flexible work in rural and peri-urban enclaves, its organization of labour and rudimentary techniques of copper extraction allude to and borrow from the colonial and precolonial past.Creuseursmobilize the past as a strategic response to the threat of dispossession of ‘their’ land by the state and foreign investors, and they do so by laying claim to an anterior ‘sovereign’ – the ancestors – whose existence predates colonialism. This paradoxical emplacement of artisanal mining, its entanglement in time, invites interrogation of some of the ways in which scholars have understood precarity not only as a politically induced condition resulting from neoliberalism but also as an outcome of the enduring nature of the colonizing structure in Africa.


Processes ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 972
Author(s):  
Muhammad Mohsin ◽  
Qiang Zhu ◽  
Sobia Naseem ◽  
Muddassar Sarfraz ◽  
Larisa Ivascu

The mining industry plays a significant role in economic growth and development. Coal is a viable renewable energy source with 185.175 billion deposits in Thar, which has not been deeply explored. Although coal is an energy source and contributes to economic development, it puts pressure on environmental sustainability. The current study investigates Sindh Engro coal mining’s impact on environmental sustainability and human needs and interest. The Folchi and Phillips Environmental Sustainability Mathematics models are employed to measure environmental sustainability. The research findings demonstrated that Sindh Engro coal mining is potentially unsustainable for the environment. The toxic gases (methane, carbon dioxide, sulfur, etc.) are released during operational activities. The four significant environment spheres (atmosphere, hydrosphere, biosphere, and lithosphere) are negatively influenced by Thar coal mining. The second part of the analysis results shows that human needs and interests have a positive and significant relationship except for human health and safety with Sindh Engro coal mining. Environmental pollution can be controlled by utilizing environmentally friendly coal mining operations and technologies. Plantation and ecological normalization can protect the species, flora, and fauna of the Thar Desert. The government of Pakistan and the provincial government of Sind should strictly check the adaptation of environmental standards. Furthermore, the researchers should explore the environmental issues and solutions so that coal mining becomes a cost-efficient and environmental-friendly energy source in Pakistan.


2021 ◽  
Author(s):  
Eunkwang Seo ◽  
Deepak Somaya

Research has long recognized the importance of collaboration for innovation, but relatively little is known about the strategic drivers of collaborative innovation in firms. We posit that robust collaboration within firms can increase the interfirm mobility of inventors and increase spillovers of innovative knowledge to competitors by mobile inventors. Therefore, by mitigating these value capture hazards associated with collaboration, barriers to employee mobility may induce firms to increase collaborativeness in innovation. Additionally, consistent with the mechanism underlying this proposition, we hypothesize that firms whose innovation entails more complex knowledge, which is known to impede interfirm knowledge spillovers, will increase collaboration less when employee mobility increases. We test these hypotheses by leveraging quasi-exogenous changes in two legal mobility barriers for inventors across U.S. states and find that higher-mobility barriers are associated with greater inventor collaboration (as observed in patented innovation), and this effect is weaker for firms possessing more complex knowledge. These findings deepen our understanding of the strategic tradeoffs between value creation and value capture entailed in collaborative innovation within firms and of human capital strategies that help to manage these tradeoffs.


Author(s):  
Carliss Y. Baldwin

How do firms create and capture value in large technical systems? In this paper, I argue that the points of both value creation and value capture are the system’s bottlenecks. Bottlenecks arise first as important technical problems to be solved. Once the problem is solved, Then the solution in combination with organizational boundaries and property rights can be used to capture a stream of rents. The tools a firm can use to manage bottlenecks are, first, an understanding first of the technical architecture of the system; and, second, an understanding of the industry architecture in which the technical system is embedded. Although these tools involve disparate bodies of knowledge, they must be used in tandem to achieve maximum effect. Dynamic architectural capabilities provide managers with the ability to see a complex technical system in an abstract way and change the system’s structure to manage bottlenecks and modules in conjunction with the firm’s organizational boundaries and property rights.


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