With reference to the article above, write an office memo of 400-550 words, discussing the defensive strategy used by Sibanye Stillwater Ltd There are 3 types of defensive strategy: Retrenchment Divestiture Liquidation Discuss which defensive strategy used by Sibanye Stillwater Ltd
Question 1 - Business
With reference to the article above, write an office memo of 400-550 words, discussing the defensive strategy used by Sibanye Stillwater Ltd
There are 3 types of defensive strategy:
- Retrenchment
- Divestiture
- Liquidation
Discuss which defensive strategy used by Sibanye Stillwater Ltd
Case study:
Huge job cuts looming for one of South Africa’s biggest employers
Sibanye Stillwater Ltd. said it might cut more than 2,000 jobs at some gold mining operations in
South Africa that are struggling to make a profit. The Johannesburg-based precious metals producer will enter into consultations with labour groups and other stakeholders on the proposed
restructuring, which could affect 1,959 employees and 465 contractors at its Beatrix 4 shaft and
Kloof 1 plant. The operations aren’t profitable as they are running out of commercially viable ore,
and they face rising costs and lower output levels, Sibanye said in a statement. “To allow shafts and operating plants that are no longer sustainable to continue operating at a loss will threaten the remaining life of mine of the other South African gold operations,” said Richard Stewart, Sibanye’s chief regional officer for Southern Africa. Sibanye, the largest employer in South Africa’s mining sector, was hit by a workers’ strike over wages for almost three months earlier this year. The company is among producers battling to squeeze profits from some of the world’s deepest and costliest gold mining shafts. It’s becoming harder to operate the mines profitably due to strikes, higher electricity costs, and challenges extracting ore at depths of as much as 4 kilometres (2.5 miles), said company spokesman James Wellsted.
Sibanye Stillwater Ltd., a Johannesburg-based precious metals producer, has encountered a series of challenges in its South African gold mining operations, primarily due to declining profitability, dwindling commercially viable ore, increasing operational costs, and diminishing output levels. The company, which is South Africa's largest employer in the mining sector, has faced considerable difficulties in maintaining profitability amid strikes, surging electricity costs, and the complexities of ore extraction at extreme depths.
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