2. External Analysis

3. External Analysis

4. Summary External Analysis Opportunities Threats low wages
many social issues unaddressed
undiscovered/underexploited mines
Threats
Increased vandalism and theft
Increased pollution
Increased scrutiny by international activists

5. Internal Analysis

6. About Barrick Internal Analysis Operates in 5 continents
Listed on multiple stock exchanges
Spun off TZ business - ABG IPO on LSE
TZ exploration; mining activities begin
4 main gold mining sites in the Lake Victoria Zone in TZ
Core vision and values:
“To continue finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner”

7. Operations Analysis Internal Analysis
advanced exploration technological systems
relies on TZ government and legal system
 established mining institution
operates in a more sustainable and responsible manner than other global mining corporations
promotion of CSR activities

8. Social Processes Internal Analysis
follows global corporate social responsibility standards
established a “community department” to oversee social development initiatives
entrepreneurship programs
healthcare accessibility
corporate ambassadors
commitments inconsistent with the perception of its behaviors by some stakeholders

9. Human Capital Internal Analysis
Corporate culture of socialization in human resource management (HRM)
training department in each mine
recruited university graduates for administrative work in corporate offices
manual labourers worked alongside experienced expatriates and locals
Integrated Mining Technical Training program (IMTT)
Global Succession Planning Program (GSPP)

10. Summary Internal Analysis Strengths Weaknesses
strong corporate culture and HR management
able to harness advanced technology and global expertise
Weaknesses
CSR efforts perceived negatively by local communities; negative corporate image
reliance on TZ government to sustain business viability
poor cultural understanding and communication with stakeholders

11. Alternatives

12. Leave TZ –refocus resources
Alternative 1
Leave TZ –refocus resources
PROS
CONS
Eliminates ethical issues company might have in TZ
Provides ability to reallocate resources more efficiently to existing projects (increase efficiency)
Recoup investment by selling off assets
It might not be possible to find mineral deposits that would yield profitable operations in industrialized countries
Competitors will take over mineral extraction rights in TZ and might be even less ethical than ABG
Potential financial losses, investment losses if potential buyer not secured
Leave sites in worse state (damage to environment, social programs)

13. Follow regulation & hire security to protect operations
Alternative 2
Follow regulation & hire security to protect operations
PROS
CONS
Control the population and prevent destruction of the mining sites
Less money invested into the community hence a more profitable bottom line
Potentially costly
Socially unacceptable, promoting hostility
Even with hired security, operations might still be vulnerable

14. Enhance CSR activities to reduce Tensions
Alternative 3
Enhance CSR activities to reduce Tensions
PROS
CONS
Increases welfare of local residents
Long-term sustainability
Cooperative working environment, leading to higher productivity
Potentially costly
Might not completely satisfy local communities whose livelihoods are affected by mining operations

15. Recommendation-Choose Alternative 3
Metrics
Recommendation-Choose Alternative 3
Alternative 1
Alternative 2
Alternative 3
Impact on Employees - o +
Impact on Government
Impact on Company O
Impact on Local Communities x
Impact on Environment
Recommended Action ✓

16. Implementation

17. Short term 0-6 months Stop the nightly mining
Involve locals in decision-making process in social programs.
Assign a liaison between the corporation and local communities to ensure that efforts and funds are being properly allocated to maximize the benefit to local communities.
Strengthen communication between management/employees and locals.

18. 0-6 months
Short term
Involve locals in decision-making process in social programs.
Community-based entrepreneurship should focus on fishing/agriculture related activities since 90% of the workforce in TZ is employed in that industry
Provide adequate solutions to those who lost their homes and land (Habitat for Humanity)
Continue investing into the Kilimanjaro mining institution and train locals to replace expatriates.

19. Medium term 6-24 months Move higher on the civil learning graph
Create a cultural training program, to be used during orientation, for the management team and expatriates
Increase environmental preservation efforts
Assigning the community leader the task of finding people in the community that can spread the message on how to be “green” and help the “cleanup” process.

20. 24+ months
Long term
Bridge the gap between level of labor required and education
Make sure that with all the efforts invested, in the last 2 years, Barrick develops a “deep understanding, integration, and [builds] a trusting relationship”.
If conflicts are resolved consider changing the current security to employ locals to help the Tanzanian economy.