De Beers Paper

2141 WordsFeb 14, 20149 Pages
1. Specify the nature, structure, types of products or service of your chosen organization, and two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. De Beers Diamond Company is an industry that currently produces $13 billion worth of rough diamonds each year, leading to the employment of 10 million people globally from mining to retailing. 70% of rough diamonds are sold for industrial purposes with the remaining 30% “gem quality” being distributed to experts for cutting, polishing and jewelry manufacturing (Stein, 2001). The global jewelry market has increased three-fold in the last 25 years and is currently worth $72 billion each year. Jewelry diamonds…show more content…
3. Suggest five (5) ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for the response. Diamonds have been successfully marketed so that they are perceived to be the ultimate way to demonstrate heartfelt and enduring affection and commitment towards others (Stein, 2001). This allied with the fact that they are given as gifts to celebrate many births, weddings and anniversaries, means that they hold a unique place in the hierarchy of jewelry and as such there are no substitutes for them. To a certain extent other jewelry such as gold, silver and platinum are substitutes, however they are all complementary products as often diamonds are mounted on gold and silver in their final form as consumer jewelry. Large amount of synthetic diamonds are produced each year however most of these (3 billion carats) are for industrial use, with only a few thousand carats of gem quality synthetic diamonds being produced annually, against production of 120 million carats of natural diamonds. As there are very few non-clear natural diamonds produced each year (0.1%), synthetic diamonds produced for the jewelry industry are generally colored in order to meet excess consumer demand for colored gems (Stein, 2001). As they have few if any substitutes, diamonds are an elastic commodity. De Beers have managed to attach an emotional value to diamond jewelry, thus ensuring it is a necessity for every marriage proposal, as well as a
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