De Beers And Coca Cola: Critical Analysis Essay

Length: 19 pages Sources: 18 Subject: Business Type: Essay Paper: #8533512 Related Topics: Cola Wars, Critical Analysis, Lobbying, Pepsico
Excerpt from Essay :

¶ … 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 is the world's famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the government reach their aims of turning natural resources into natural wealth and is working to provide good long-term development for Africa. Anglo American and the Government of the Republic of Botswana are the two shareholders of De Beers, 85% and 15% respectively. This company is made up of fully owned partnerships, investments and subsidiaries. It is involved in most of the diamond chain value such as exploration in four continents, mining in Namibia, Canada, South Africa and Botswana; valuation, arrangement, and sale of rough diamonds to sight holders; sale and marketing of polished diamonds and jewelry to consumer markets and development of synthetic materials for industrial applications (De Beers Group, 2012a).

The external environment of the organization deals with the finding and mining of diamond fields in the stages which are usually carried out by governments, at times in joint-ventures with for example, De Beers. When a reserve is discovered, it is worth to be utilized because the market value of production the raw material, which leads to financial rewards, is very high (De Beers Group, 2012a).

2) Examine three (3) salient stakeholders of the chosen organization based on their key roles and relationship with the company.

De Beers diamond Company has three stakeholders which includes; The Kimberley Process, which is a joint government, industry and civil society initiative to root the flow of rough diamonds which are used by rebellious movements to provide money to war against certain governments (De Beers Group, 2012b).

The second stake holder is Business Action for Africa, which is an international business organization from Africa and supports three basic targets which are, positive influence policies needed for growth and poverty reduction, showcase good business practice and promote a balanced view of Africa. De Beers also encourages continual business to assure long-term developments for Africa and this commitment is declared through their hefty social investment activities in South Africa, Namibia and Botswana (De Beers Group, 2012b).

The third stake holder is Diamond Development Initiative which is a program that seeks to allay poverty amongst more than one million African informal or artisanal, small diamond diggers and their families by characterizing the economies surrounding artisanal diamond mines (De Beers Group, 2012b).

A fair proportion is returned to the continent every year by De Beers. Their approach to feasible development is essential to business and is built by five critical focus areas such as Environment, Communities, Ethics, Employees and Economics. DDI was founded by De Beers with other famous NGO's as well we the British Government, and the World Bank after being inspired by the cross sector cooperation of the Kimberley Process. It unites governments, NGO's and the private sector to convert diamonds into an engine for development (De Beers Group, 2012b).

3) Suggest five (5) ways in which the primary stakeholders can influence the organization's financial performance. Provide support for the response.

Successful marketing of diamonds has been done so they are recognized to be the only way to manifest heartfelt and long lasting devotion and commitment towards others which means that they are given as presents to celebrate weddings, births, anniversaries and hold a unique place in hierarchy of jewelry and there are no replacements for them. To some limit, jewelry such as platinum, silver and gold are surrogates but they are all integral products as often diamonds are placed on top of gold and silver in their final form jewelry used by consumers (Durnovich, 2014). Synthetic diamonds are produced on a large scale, but a lot of them i.e. 3 billion carats, are mostly used for industrial use. With some few thousand carats of gem quality synthetic diamonds which are being produced each year,...


Because there are very few non-clear natural diamonds being produced annually, synthetic diamonds being produced for the jewelry industry are mostly colored to meet the demands of the consumers for colored gems and because they have very less surrogates, diamonds are flexible products (Durnovich, 2014). 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 host of other distinctive occasions such as anniversaries and birthdays. Today diamonds are perceived to be the ultimate way to demonstrate enduring love and devotion and as such consumers are willing, and expect to pay a high premium for such a gift (Bieri and Boli, 2011).

De Beers has been successful to attach an emotional value to diamond jewelry, ultimately ensuring it as a requirement for every marriage proposal and also as a host of other special occasions such as birthdays and anniversaries. In the present day, diamonds are seen as the only way to exhibit enduring love and devotion and customers are willing and expecting to pay a high price for such a gift. This determines that there has been an increase in the demand for diamonds during the 20 thcentury while prices increased heedlessly during that era (Bieri and Boli, 2011). Ever since the discovery of the diamond fields in South Africa in the 1870's, production has consistently risen over time and now an acquired total of 4.5 billion carats have been minded since then. 20% of that amount has been determined in the last five years itself. The increased global need for diamonds is very large and owes it to the marketing enterprise of the De Beers group. As mentioned before, De Beers, from 1930 onwards, handled the increasing consumer demand by presenting diamonds as the only product of love and devotion, which lead to the diamond ring being necessary for marriage proposals. It also came up with a motto "Diamonds are forever" to bestow stones with sentimental value. This concluded in a very small amount of diamonds being sold privately by people as the public owns more than five hundred million carats of gem diamonds which is more than fifty times the number produced by the diamond corporation. There is no decrease in the demand for brand new diamonds from high street jewelers because of this. Globalizing consumer markets for diamonds is another thing which De Beers should be credited for. This successfully increased demand for diamond jewelry in countries which include Japan, Brazil and Germany. De Beers altered marketing campaigns to construct a demand for numerous small diamonds set on a single piece of jewelry instead of just one large stone, after Russia began to produce large amounts of rough diamonds that were small in size in 1960's. These steps by De Beers lead to the demand of creating small stones to match the supply. This global decline is resulting in the demand for diamonds to go down fiercely. De Beers has had absolute control of the market and has been able to preserve the high price because of which diamond is seen as an abiding exclusivity and luxury (Claasen and Roloff, 2012).

4) Specify one (1) controversial corporate social responsibility concern associated with your selected organization.

At one time, De Beers Diamond Company was considered to be a fighting diamond that was worth 1.2 billion dollars which drifted to the market globally due to the 1990s civil war in Sierra Leone and Angola. With the fear of losing the competitive advantage, De Beers Diamond felt it necessary to buy the diamonds which were in new supply. De Beers were accused of blood on their hands and the new purchase of the diamonds resulted in disaster in public relations. The United Nations also under the pressure of campaigns and boycotts set sanctions on the diamonds (Saunders, 2000).

5) Assuming you are the leader of the most influential stakeholder group, outline a plan to form a stakeholder coalition to force the organization to address your chosen controversial issue. The plan should include the key steps that you would take to identify membersfor your coalition group, the major reasons why you believe that the particular target group can help you to accomplish your goal, and the method you would utilize to foster collaboration among the various groups you target.

In 2000, De Beers in order to redeem the PR image that had worsened and to re-store people's trust in their brand started Kimberly Process in which seventy industries devoted a stern process of certification to the industry for a lawful diamond origin. This process has been in use since 2003 and has also decreased the amount of conflict diamonds to a global production of less than one percent. Apart from that, De Beers also extended health insurances to the workers who were HIV positive and…

Sources Used in Documents:


Austin JE (2000) The Collaboration Challenge: How Nonprofits and Businesses Succeed Through Strategic Alliances. San Francisco, CA: Jossey-Bass.

Baker, R (2010). Pepsi Reveals Sustainable Business Plan', Marketing Week U.K., 19 October. Available from:

Barkay, T. (2013). When Business and Community Meet: A Case Study of Coca-Cola. Critical Sociology, 39: 277.

Bieri1, F. And Boli, J. (2011). Trading Diamonds Responsibly: Institutional Explanations for Corporate Social Responsibility. Eastern Sociological Society.
Business Wire. (2003). De Beers Opens Three Boutiques in Tokyo.
Coca-Cola (2011) Physical activity. Available (consulted July 23, 2011) at:" target="_blank" REL="NOFOLLOW">
Coca-Cola Enterprises. (2009). Corporate Responsibility and Sustainability Review. Available from:
Pepsico. (2010). Corporate Webpage: Environmental Sustainability. Available from:
The Coca-Cola Company 2010, Product Water Footprint Assessments. Available from:" target="_blank" REL="NOFOLLOW">
The Coca-Cola Company. (2008/2009). Sustainability Review. Available from:" target="_blank" REL="NOFOLLOW">
The Coca-Cola Company. (2009) Annual Review. Available from:" target="_blank" REL="NOFOLLOW">
The Coca-Cola Company. (2010). Corporate website. Available from:
The De Beers Group. (2012a). About Us.
The De Beers Group. (2012b). Multi-Stakeholder Initiatives
World Wildlife Fund (2010). organization website, Available from:

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