Diamond Industry Essay Example | Topics and Well Written Essays - 750 words

Diamond Industry - Essay Example The hallmark of the trade of gem diamonds is its remarkable concentration; that is, diamond cutting and wholesale trade is limited to few locations. This paper will outline the PESTLE that stands for political, economic, social, technological, legal and The cartel, which is the character of the diamond industry, has created a barrier to entry in the diamond industry. Taking this step has made it impossible for new entrants into the diamond industry. According to Greenhalgh (2005, p. 105), the changes experienced in the industry has led to the rise of three major diamond companies such as Alrosa, RTD and BHPB . The changes involve the discovery of other diamond fields in countries that De Beers no longer have control and the political disorders taking place in the diamond producing countries which are still developing. The dynamic trend in the industry has made it possible for junior companies to rise. To enable the industry have a bigger share in the industry, there has been merging and acquisition for junior companies in the past few years. In addition, the strategy laid by Australia of operating in the niche market, such as rare-high priced and colored gems, without hurting the industry leader, has opened aspects of the industry that were not easily accessible. Unlike other industries, the structure of diamond industry does not does not grant the buyers the bargaining power. Over the years, the denied bargaining power has been the trend in the industry. In return the the global economic crisis has hit the industry causing a fall in demand for diamond. With the fall in demand, it meant that there could be an oversupply and a reduction in price. To control this, De Beers ordered for a reduction in diamond production. However, De Beers and other mines including those in Canada stopped the production to as a result of the economic crisis. As a result, there was a low supply for diamonds with increasing demands in other markets such

International HRM Essay Example | Topics and Well Written Essays - 1000 words

International HRM - Essay Example In this paper, the potential issues that are encountered by the HR managers during overseas operations will be discussed. In order the evaluate the potential problems that are posed to arise in the way of managing an internal level ethnically and culturally diverse workforce, situational analysis appears to be a basic necessity. This situational analysis is aimed at evaluating the global business conditions that are responsible for creation of ethnically and culturally diverse workforces. So the first sub-topic in this discussion is that what are the importance and role of a multi national company (MNC) in the age of globalization? Traditionally, most of the functional MNCs had headquarters located either in USA or UK. Particularly after World War II, the US and UK companies embarked on a policy of consistent world wide expansion, especially in Europe following the implementation of politico-economic measures such as the Marshall Plan (Ferner et al, 2004). But after the break up of Soviet Union, situation changed dramatically. Developing countries and erstwhile communist states began shifting from a conservative socialist economic model towards a liberalist capitalist market framework. Therefore, just after little more than a decade of the fall of communism and decline of international Soviet financial aid, powerful corporations emerged in the developing economies too. In this way, the â€Å"new geography of FDI flows† came into being (UNCTAD, 2004). These FDI flows were not exclusively outflows or inflows. In fact, combinations of FDI outflow and inflow began to germinate between Western countries and Asia Pacific region as early as the 1980s when Japan, China, and Taiwan initiated industrial reforms (Glover and Wilkinson, 2007). In this way, it should be understood that today’s MNCs represent the zeal of the early phases of globalization which advocated for adoption of global standards