(Mt) – Maaden Investment in South Africa Report

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Please view explanation and answer below.Outline of Report Writing-Maaden Investment in South AfricaIntroductionSWOT Analysis of Maaden Companya) Strengthsb) Weaknessesc) Opportunitiesd) ThreatsAnalysis of Political, Economic, Cultural, and Legal Challenges faced by Maaden in SouthAfricaPolitical FactorsEconomic FactorsCultural FactorsLegal FactorsConclusionReport Writing: Maaden Investment in South AfricaSelect any publicly listed Saudi Company that operates in Europe and / or Africa, andwrite a (minimum of 2000 word) report covering the following points:1.Present the study report with clear Introduction and Conclusion including your ownviews. (minimum words: 500, marks: 3)2.Using SWOT analysis, analyze the external and internal environment of your selectedcompany. (minimum words: 900, marks: 7)Strengths: Explain the strengths of the selected company;Weaknesses: Describe the areas of weakness in the company’s operations;Opportunities: Examine factors that may improve the company’s chances of success;Threats: Discuss the external threats to the business company’s success.3.Analyze the political, economic, cultural and legal challenges the company currently faces inany of the country it operates (select one country in which the company operates for thisanalysis). (minimum words: 600, marks: 5)IntroductionAs many businesses implement the currently availed growth opportunities provided byenhanced globalization and technology, many firms in Saudi Arabia have embraced it too.Besides, the financial capabilities available for various firms enhance their efficient entry toglobal markets, increasing their performance. In the case of the various firms that have enteredglobal markets, Maaden Mining Company has enhanced its growth and expansion in diversefrontiers to ensure its continued prosperity in the mining industry. This state-owned company hasembraced growth opportunities in diverse international markets, including African countries. It isone of the fastest-growing companies in Saudi Arabia, with its headquarters in Riyadh. It wasestablished in 1997 to make the country’s minerals sector one of the primary economic pillars toprovide sustainable economic growth. With rich mineral content such as petrochemicals andother valuable metals, this company was established to ensure appropriate exploitation and fullutilization to ensure economic growth and stability. Before 2008, Maaden was entirely stateowned, and all decision-making processes would be made from the state’s point of view. Itsshares were floated to the public, enabling public shareholding and decision-making by diverseinvestors (Ma’adem, n.d.). As of 2018, the state owned about 65.44% of the company.Since the Kingdom of Saudi Arabia (KSA) provides full support and focuses onsustainable mineral sector operations while increasing its profitability and competitive advantagein the mining industry, it has entered numerous global markets. The recent internationalinvestment was in 2022 in South Africa. It announced its anticipated investment in fertilizerproduction with a target of Eastern, Central, and South African markets. The establishment of thenew operations aims to provide sustainable mining and production of fertilizers and ensurequality products for farmers in this African region. In this report, the analysis of Maaden isconducted through SWOT. Besides, as it pursues its investment strategy in the African continent,the new market requires extensive analysis to evaluate its suitability through analysis of political,economic, cultural, and legal factors of South Africa.SWOT Analysis of Maaden CompanyWhen planning for any investment goals, firms must conduct external and internalabilities and weak points that may affect their operations positively or negatively. There aredifferent techniques for evaluating these two business aspects, and they are used to provide anadequate understanding of a firm as it positions its operations in diverse markets. In the case ofMaaden, the SWOT analysis is applied to evaluate its capabilities and primary issues that canimpact its performance in the new market (Gürel, 2017). In this technique, strengths andweaknesses represent a firm’s internal factors, while opportunities and threats evaluate theexternal factors that impact the firm.a) StrengthsThe strengths of this company showcase its positive capabilities and enhancers excellentperformance and competitive advantage in the mining industry (Gürel, 2017). Most of the factorscontributing to the strengths of Maaden in this industry entail its large market presence andmarket share in the Middle East as one of the leading mining companies. Besides, as one of thefirms with government support despite floating its shares for the general public to acquire, it hasan outstanding financial performance that plays a critical role in the provision of a profitable andsustainable business platform for expansion goals and the achievement of strategic goals.Another crucial factor contributing to the strengths of Maaden is its efficient access to toptalent, as it offers attractive remuneration to its employees and experts in the mining industry. Asa firm with financial strength and an extensive market share in the Middle East, it can efficientlyresearch diverse sources of minerals that increase its competitive advantage. In addition, the firmhas implemented high levels of technology to enhance its efficient business operations. Anothersignificant factor contributing to the strengths of Maaden is its move to acquire internationalfirms, such as the 2019 acquisition of Meridian Mining Company based in Mauritius (Al-awsat,2019). This company has acquired a profound market share in fertilizer distribution in the SouthAfrican region. As a result, it would be beneficial for Maaden to enter the African marketplacewith diverse business strategies. Therefore, with the diverse strengths available for this miningcompany, it becomes efficient in achieving its expansion goals in the global marketplace.b) WeaknessesContrary to the strengths, weaknesses are the drawbacks or the limiting factors that affectthe efficient performance of a company and easy entry into different markets (Gürel, 2017).Maaden mining company has been under the ownership and control of the government, whichhas a potential impact on its decision-making. As a result, it becomes challenging for potentiallyinterested investors to invest in this company as it can have its decisions controlled andpredetermined by the country leaders. As a result, the leadership that controls the company’soperations impacts its public perception as it can be termed more interested in meeting thegovernment’s expectations. However unavoidable, mining firms’ business operations destroy theenvironment’s natural and aesthetic aspects. Therefore, it calls for Maaden to ensure itsoperations meet the global requirements for sustainable operations.c) OpportunitiesThese are the available strategic measures that enhance a firm’s ability to increase itschances of expanding or achieving its strategic goals. There are diverse strategies that providegrowth and development opportunities for Maaden. For instance, there are opportunities formergers and acquisitions of numerous firms in the industry to increase its competitiveness, andthe plan is to acquire the Meridian Mining company based in Mauritius in 2019 (Al-awsat,2019). Therefore, more business partnerships with other companies will enhance its growth.Another crucial opportunity for Maaden is the establishment of strategic alliances with higherlearning institutions which will conduct the firm’s research and development to enable itsefficient discovery of more profitable mineral exploitation strategies.d) ThreatsRegarding the potential threats in the business environment, these act as obstacles toachieving strategic goals that a company has in its business objectives. In this business aspect,Maaden faces various threats from diverse factors of the business environment, includingcompetition from other companies in the mining industry, challenges from the industry, andmarket trends toward its business operations, among others. The mining industry was hardly hitby the market fluctuations caused by the pandemic in 2020. As a result, various commodities lostvalue due to the dropped prices. For instance, gold reported a price reduction to this firm’seventual loss of liquidity. As a result, it opted to implement corrective strategies to enhance itscapital structure and financials by cutting operational costs. The eventual reduction of costswould require strategies such as layoffs that would harm the overall performance of Maaden inthe mining industry (ArgaamPlus, 2020).Another threat is the safety hazards prevalent in the mining industry due to businessoperations and requirements. Therefore, any occurrence of a safety hazard harms the credibilityof Maaden in its general performance. In addition, there is a compromise on the informationavailable online, as there is an increased rate of cybercrime. Therefore, Maaden has to implementstrategic measures to counter attacks from malicious online users that can affect its valuableinformation (Ma’adem, n.d.). Therefore, it has implemented strategic measures to ensure its datasecurity.The competition posed by other mining companies in the region also impacts Maaden’soperations. The most significant competitors that threaten Maaden’s operations include B2Gold,Multotec, Western Mining, and Codelco. Besides, other private-owned mining firms affect thefinancial performance and capabilities of Maaden to increase its competitive advantage.Analysis of Political, Economic, Cultural, and Legal Challenges faced by Maaden in SouthAfricaThe evaluation of the new market Maaden has entered conducted through political,economic, cultural, and legal analysis. Therefore,…

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