Anglo American platinum South Africa: strategic renewal in a declining industry
Publication date: 16 August 2021
Abstract
Learning outcomes
The learning outcomes are as follows: to demonstrate the phenomenon of strategic inertia in organizations and the impact this has on the type of renewal process that is undertaken; to differentiate between environmental and organizational adaptation strategies and synergies; to apply practical steps of renewal by outlining the influential forces and distinct stages of the process; and to create a practical framework that organizations can use as a guideline for sensing and reacting to changes in the business environment.
Case overview/synopsis
The case study examines the strategic renewal processes of Anglo American Platinum (Amplats) for the period 2012–2019. Amplats is the world’s largest producer of platinum group metals (PGMs). Despite the adversarial business environment of the South African PGM mining industry, six years into its new strategy, the organization had emerged debt-free and was poised to be sustainable. This posed a unique dilemma in strategic decision-making, namely, how to maintain a strategic renewal process. Chris Griffith, CEO of Amplats, was about to retire, but realized that the organization had yet to fulfil its potential. The ambition of the organization was to redefine the industry benchmark for performance across multiple pillars of value for different stakeholders, and to become the most valued mining company by 2023. Set in 2019, the case invites students to look back at the symptoms of strategic inertia at the time of Griffith’s appointment as CEO, and to define the nature and stages of the renewal that the organization underwent. This will provide insights that will enable an examination of the application of a framework for continual strategic renewal.
Complexity academic level
Postgraduate business students
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 11: Strategy
Keywords
Acknowledgements
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Sichone, M. and Lew, C. (2021), "Anglo American platinum South Africa: strategic renewal in a declining industry", , Vol. 11 No. 3. https://doi.org/10.1108/EEMCS-10-2020-0385
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited